Affordable Child Care Seemed Like an Impossible Task: This is the Simple Way Vermont Pulled it Off
Posted by Spotlight on Poverty and Opportunity on April 15, 2025
Vermont has tackled its childcare crisis by implementing a 0.44% payroll tax to fund new programs aimed at expanding affordable childcare options. The tax, which is split between employers and employees, was introduced after business leaders recognized that the lack of local childcare was affecting employee recruitment and retention. Through collaboration with the “Let’s Grow Kids” organization, a proposal for a state-backed payroll tax was created, offering a sustainable solution that would grow alongside the state’s workforce. Vermont’s new childcare initiative, passed into law in 2023, has already led to 90 new childcare programs and 1,000 additional spots.
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