Vermont, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.
State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.
Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.
Young Children in Low-Income Households: Declining
Approximately 32% (16,000) of the state’s children 0-8 live in households below 200% of the Federal Poverty Level (2022). This number represents a decrease from 35% (19,000) in 2017.1
Racial Disparity Among Young Children Living in Low-Income Households: High
Black, Hispanic/Latino, and/or Native children aged 0-8 are significantly more likely to be living in households below 200% of the Federal Poverty Level than are Asian and non-Hispanic White children2, however, precise disaggregated data for race in such a small age cohort are not considered reliable for states with small populations, such as Vermont.
State General Fund Appropriations: Declining
Vermont’s governor signed the state’s budget for fiscal 2025 into law in May of 2024. Based on a Conference Committee report, the budget bill provides $8.6 billion in appropriations from all funds, including $2.2 billion in general funds and $2.3 billion in education funds. This represents a 1.1 percent decrease in total fund spending, a 9.3 percent decrease in general fund spending, and an 8.3 percent increase in education fund spending compared to fiscal 2024 enacted appropriations. General fund revenue in fiscal 2025 is forecasted to total $2.1 billion, a 0.9 percent decrease from fiscal 2024 estimates.3
Largest FY 2021 Revenue Sources (after federal transfers):4
State Budget Rules:4
Permanent State Funding Stream Dedicated to Early Childhood: Yes
In 2023, Vermont passed the nation’s first payroll tax dedicated to child care. The 0.44 percent payroll tax (split between employers and employees) generates about $80 million annually to fund expanded eligibility for subsidized child care along with increased reimbursement rates and supports for the child care workforce.
Political Alignment: Divided
During the 2024 session, the state’s Senate and House were both Democrat controlled. The state’s Governor was a Republican.5
Types of Common Ballot Measures Available:6 One
Early Childhood Policy Advocacy Organizations Include:
Early Childhood Policy Advocacy Multi-State Initiatives Include:7
Highlights from the state’s early childhood policy advocacy community include:8
In 2024, advocates worked with policymakers and the administration to ensure that the state’s historic child care law is being implemented effectively. In 2023, the Vermont Legislature passed Act 76, Vermont’s historic child care law. Implementation of the new law began in the summer of 2023 and will continue for several years. This year, just as Act 76 began to roll out and transform Vermont’s child care system, the Governor proposed reducing base funding before the law has even been fully implemented. The Legislature took a very different approach and strengthened the law by amending language in statute to make CCFAP an entitlement program. The state must now find the funds necessary to meet the needs of any families who apply to and qualify for the program. This is a huge victory for Vermont’s kids and families. The Legislature also chose to fully fund Act 76 in SFY 2025.
The passage of S.109 officially paves the way for Medicaid coverage for doula services in Vermont. While it shifted significantly during the session, this bill lays important groundwork for future implementation by mandating the Office of Professional Regulation to undertake a “sunrise study” to assess how the doula profession might be regulated, and directing the Department of Vermont Health Access to determine rates, costs, and feasibility. These administrative steps can help make it possible for Vermont to join other states in offering this coverage. We’re grateful for the strong support and enthusiasm of the legislature in moving this forward and are looking forward to elevating the voices of families and doulas and the advocates around the country who are working to make sure this policy stays centered in Reproductive Justice, the Community Doula model, and equitable access for families.
Advocates are celebrating the passage of H.661, which improves the processes for child neglect and abuse investigations. The new law will help ensure that DCF’s investigations are thorough, unbiased, based on accurate and reliable evidence, and adhere to due process requirements. They will join the Parent Representation Center, the Department of Education, the Department of Mental Health, DCF and others in the rule making process and next steps for implementation. This bill represents real progress and is the beginning of important work ahead to create support and accountability for families and systems designed to ensure child safety.
The state’s community schools pilots received one year of continuation funding in the state budget. During the initial three-year pilot, funded by $3.4 million in federal funds, Vermont was recognized as having created a new national standard for community schools frameworks, with the addition of a fifth “pillar” focused on creating safe, inclusive, equitable learning environments. Officials in the five high-poverty pilot districts testified to the impact that these funds had in their ability to engage with children in families to overcome barriers to learning and wellbeing that might typically be outside the scope of education.
The Alliance’s key allies in Vermont are Let’s Grow Kids (LGK) and Voices for Vermont’s Children (VVC). LGK is a statewide movement to secure affordable access to high-quality child care for all Vermonters by 2025. LGK partners with local communities to strengthen the existing early childhood education system and mobilizes Vermonters to demand policy change and increased public investment in high-quality child care. VVC conducts research and analysis on policy solutions to improve the lives of children and youth, and advocates for those changes in the legislature and beyond. Their efforts focus on addressing equity through systemic change rather than individual-level interventions.
Let’s Grow Kids and Voices for Vermont’s Children are working to advance early childhood policies in several areas that align with the Alliance’s birth-through-eight policy framework:
Child Care
Child Care Workforce
K-3rd Grade
Preschool and Pre-K
Child Health
Early Intervention (Age 0-3)
Family Economic Security
Paid Family and Medical Leave
Early Childhood Finance and Cost Modeling
Early Childhood Governance
The Vermont state legislature made an historic investment in the state’s child care system of more than $76 million in new funding in state fiscal year 2024 and nearly $125 million in state fiscal year 2025. Despite facing political challenges and uncertainty, Act 76 found a path forward through a veto override with multi-partisan support.
NOTES:
1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.
2 National Center for Children in Poverty, Children Ages 0 to 8 Below 200 Percent Poverty, March 2023, NCCP analysis of ACS 1-Year Estimates – Public Use Microdata Sample 2021.
3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2025.
4 Urban Institute, State Fiscal Briefs, June 2024.
5 National Conference of State Legislatures, 2024 State & Legislative Partisan Composition, April 29, 2024.
6 Ballotpedia, Ballot Measures by State, Kids Count Data Center, retrieved July, 2024.
7 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.
8 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2024; and 2024 Prenatal-to-3 Legislative Highlights, Prenatal-to-3 Policy Impact Center, July, 2024.
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© 2024 Alliance for Early Success
The Alliance for Early Success does not endorse or advocate for specific legislation or candidates.
