Vermont officials report progress implementing Act 76 childcare changes, warn federal CCDF rules will require more work

Deputy Commissioner Janet McLaughlin of the Department for Children and Families told the House Human Services Committee on Tuesday that Vermont has implemented most of the key changes in Act 76 to the Child Care Financial Assistance Program (CCFAP), including expanded eligibility and large increases in payments to programs, while cautioning federal policy changes will require additional policy and IT work.

"As of October 6, families can be eligible for childcare financial assistance with incomes up to 575% of the federal poverty level for a family of 4, that could be about $180,000 in gross income for the family," McLaughlin said, describing what she called "the most financially inclusive childcare financial assistance program in the nation." She and department staff also highlighted an online application launched Sept. 7, which McLaughlin said had processed "over 1,500 applications and it's about 1 third of the applications" through the portal so far.

Why this matters: Act 76 broadened who may receive aid, increased the state share of provider payments and established new incentives and grants intended to expand capacity and quality. Those changes are intended to lower family costs and increase infant- and toddler-care availability, but they also raise budget and operational questions as federal CCDF rules take effect.

What DCF reported

McLaughlin said the state has enacted the major rate and program changes required by Act 76. "All of the rate changes that were in Act 76 have been implemented. They were all implemented on time," she said, and described program-level increases that in some cases raised payments to providers by 35% to 150%, depending on…