Child care policy tug‑of‑war

Vermont is fighting two child care battles at the same time. One fight is about whether families can afford care, and the other is about whether the state should add a new licensing system for the people who provide it. (childtrends.org; legislature.vermont.gov) The split came into focus on April 7, 2026, when a VTDigger commentary argued that bill S.206 would pile new rules onto a sector that is already heavily regulated, while a Child Trends research brief released the same day reported that Vermont’s subsidy expansion has increased participation and lowered costs for many families. (vtdigger.org; childtrends.org) That makes Vermont’s child care debate unusually concrete. One side says the state is making access easier by putting more money into care, and the other says the state could make supply tighter by making it harder to work in the field. (childtrends.org; vtdigger.org) The affordability side starts with Act 76, a 2023 Vermont law that made major investments in child care and early childhood education. The Vermont Department for Children and Families says the law took effect in stages beginning July 1, 2023, with more changes rolling out through 2024 and beyond. (dcf.vermont.gov) The biggest change in Act 76 was who could qualify for help. Child Trends says Vermont gradually expanded child care subsidy eligibility to families earning up to 575 percent of the federal poverty level, which meant a family of three making about $172,000 in 2024 could qualify. (childtrends.org) The law also changed what the lowest-income families pay. Child Trends reports that families at or below 175 percent of the federal poverty level, or about $52,000 for a family of three, can receive subsidies with no family share payment, which effectively eliminates child care costs for that group. (childtrends.org) Those rule changes show up in the enrollment numbers. Child Trends found that the number of Vermont families receiving child care subsidies rose 55 percent, from 5,059 in July 2022 to 7,851 in May 2025. (childtrends.org) A separate January 15, 2026 monitoring report to the Legislature tells a similar story from the state’s implementation side. Building Bright Futures reported that 2025 was the first full year when all major Child Care Financial Assistance Program changes were in effect statewide, and the system adapted to serve about 50 percent more families than before Act 76. (legislature.vermont.gov) Child Trends also found that from October 2024 to May 2025, families in the subsidy program spent about 5 percent of their income on child care, although the burden differed by income group. The same brief says moderate-income families earning between 175 percent and 350 percent of the federal poverty level paid a stable amount that covered about 60 percent of their total child care costs. (childtrends.org) That is the part of the story pointing in a positive direction: more families are getting help, and the poorest families are paying nothing out of pocket. Vermont also raised reimbursement rates for providers under Act 76, which was meant to improve both affordability for parents and financial stability for programs. (childtrends.org; dcf.vermont.gov) The other fight is S.206, a 2026 bill about professional licensure for early childhood educators. The bill status page shows it passed the Vermont Senate on March 19, 2026, by a 22 to 6 vote, and was then sent to the House Committee on Government Operations and Military Affairs on March 24, 2026. (legislature.vermont.gov; legislature.vermont.gov) As passed by the Senate, S.206 would create a Vermont Board of Early Childhood Educators inside the Office of Professional Regulation. Legislative materials say the bill would set up license categories for Early Childhood Educator I, Early Childhood Educator II, Early Childhood Educator III, and a legacy path for family child care providers, with the licensing structure taking effect on July 1, 2028. (legislature.vermont.gov; legislature.vermont.gov) Supporters describe that as a workforce upgrade. Testimony filed with the Legislature says the bill would create individual licensure for more than 8,000 early childhood educators in non-public-school home-based and center-based programs, with the goal of creating clearer professional standards and career pathways. (legislature.vermont.gov) Critics see something different. The April 7 VTDigger commentary by economist Edward Timmons argues that Vermont already has some of the most restrictive child care rules in the country and that adding individual occupational licensing on top of program regulation would worsen shortages rather than solve them. (vtdigger.org) The bill would also cost money to run. A legislative fiscal note says S.206 would create two new positions in fiscal year 2027 at the Office of Professional Regulation, would likely require three additional positions starting in fiscal year 2028 to regulate the profession adequately, and would generate license fee revenue only after the licensing system begins. ([legislature.vermont.gov](https://legislature