Vermont bill adjusts childcare reimbursement rates to reduce disparities

House Bill 248, introduced in the Vermont State Legislature on February 18, 2025, aims to reshape the landscape of child care financial assistance in the state. The bill proposes a new reimbursement payment structure for child care providers, which is set to significantly narrow the financial gap between family child care homes and center-based programs.

At the heart of House Bill 248 is a provision that mandates reimbursement payments to child care providers based on their operational category—whether they run a child care center, preschool program, family child care home, or afterschool/summer care program. Notably, the bill stipulates that the reimbursement rate will be adjusted to reduce the existing differential between family child care homes and center-based programs by 50 percent. This move is seen as a critical step toward equity in child care funding, addressing long-standing disparities that have affected family child care providers.

The bill also outlines that payments will be based on a child’s authorized enrollment, with the Department of Children and Families tasked with defining “enrollment” and establishing rules regarding allowable absences for continued participation in the Child Care Financial Assistance Program. This approach aims to streamline the process and reduce administrative burdens on providers.

As the bill progresses, it has sparked discussions among stakeholders, particularly regarding its potential impact on the child care sector and families relying on these services. Advocates argue that the changes could lead to more stable funding for family child care homes, which often struggle to compete with larger centers. However, some opposition has emerged, with concerns about the adequacy of funding and the implications for existing programs.

House Bill 248 is set to take effect on July 1, 2025, and its passage could mark a significant shift in Vermont's approach to child care funding, with potential ripple effects on the availability and quality of child care services across the state. As lawmakers continue to debate the bill, its implications for equity and access in child care remain at the forefront of discussions.