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State of Vermont, Department for Children and Families Child Development Division Act 76 FAQs

10 Revised June 10, 2024

requirement in Act 76 that caps annual tuition increases for all regulated child care programs. The tuition rate increase cap that was announced for July 2023 to June 2024 is no longer in effect. Per Act 113 of 2023 Sec. E.318.1, the next tuition increase rate cap will go into effect July 1, 2025. In April 2025, CDD will post notice of the renewed requirement and the higher percentage increase allowed for July 2025 to June 2026. Per statute, this amount is 1.5 times the percentage change of the most recent Employment Cost Index for Education Services. While the cap is intended to support affordability of child care for families, the Legislature recognized that there were questions about interpretation and implementation that will take time to assess. 4. Will the Family Child Care Home regulations also be amended to include the requirement that program directors be on-site at least 40% of the time children are present? There is not a formal “Program Director” role in Family Child Care Home regulations, so this change does not apply to that program type. This change currently applies to Center-based Child Care and Preschool Programs and Afterschool Programs where a formal Program Director role is established in licensing regulations. The Program Director is charged with setting curriculum and supervising staff to ensure their consistent practice and quality within those programs; they do not necessarily regularly lead a group of children which is why it was determined that they could be on-site for fewer hours if desired by that program. Section 4 - Accountability and Administration 1. Where can I find more information on how and when the new payroll tax will roll out? The new payroll tax, which is an increase of .11% from employees and .33% from employers, will go into the Child Care Contribution Special Fund. Taxes will begin to be collected starting July 1, 2024. The Vermont Department of Taxes has created a page on the Child Care Contribution; more information on this tax can be found the Vermont Department of Taxes Child Care Contribution webpage. Section 5 – Prekindergarten-Related 1. When do the changes to UPK (Universal Prekindergarten) go into effect? Act 76 does not make changes to Universal Prekindergarten at this time. The law directs the state to form a Prekindergarten Implementation Committee to create a plan that would provide full-school-day full-school-year Prekindergarten to four-year olds starting in the 25/26 school year. The Committee’s report is due to the Legislature on December 1, 2025. The Committee meetings are public and are announced on the Vermont Agency of Education event calendar.