Let's Use Act 76 Funding As Intended

We are encouraging VBSR business members to urge our state lawmakers and the Governor to do the right thing – use every dollar from Act 76 for its intended purpose: solving Vermont’s child care crisis. 

Please read the letter that our partner Let's Grow Kids will deliver to state lawmakers and then sign on using the form below to have your voice heard.

Last week, Governor Scott unveiled his FY26 state budget and it included a troubling proposal that threatens to derail critical progress in addressing our state’s child care crisis. Despite lawmakers’ promise from Act 76 to use the new payroll tax funds for their express purpose—addressing Vermont’s urgent child care crisis—the Governor has proposed to divert nearly $20 million in child care funds to be used for completely unrelated government expenses. If lawmakers go along with his proposal, it would go back on the commitment that was made to Vermonters and jeopardizes the progress we’ve made to date on child care.

Let’s be clear: Vermonters overwhelmingly support solving the child care crisis because they know it’s essential for families, businesses, and our economy. With the new funds allocated so far, we have made significant strides. Nearly 2,000 families have seen lower child care costs, easing the financial burdens that too often prevent parents from participating fully in the workforce. Over 1,000 new child care slots have been created, allowing more Vermonters to work and providing a more reliable workforce for businesses. And, critically, compensation and benefits for early childhood educators—the backbone of this system—have gone up, helping us retain and attract the talented professionals our children deserve.

But this progress is fragile and fully solving the child care crisis will take years and continued investment from our state. Simply put, we have much more work to do. Diverting Act 76 funds away from child care—even temporarily—is a terrible approach to policy-making that threatens our progress and our economic viability. The Governor himself said we should discontinue the raid on the transportation fund to pay for general fund spending. Why then in the same budget would he propose to raid the child care fund to pay for general fund spending? His proposal would result in more families and child care programs struggling to get by, and employers then feeling the ripple effects of an already unstable workforce. In short, this decision would move Vermont backward at a time when we cannot afford to falter on our commitment to solving the child care crisis.

The evidence is clear: investing in child care pays dividends. Every dollar spent supports parents in the workforce, fosters children’s development so they are ready to learn when they enter school, and strengthens local economies. Reducing our investments when we’ve only just begun to see the gains is shortsighted and counterproductive, undoing the progress we’ve made and delaying the promise of a future where every Vermont family has access to affordable, high-quality child care.

We urge our state lawmakers and the Governor to do the right thing: use every dollar from Act 76 for its intended purpose: solving Vermont’s child care crisis. Together, we can hold our leaders accountable and ensure that Vermont remains a place where families can thrive, businesses can grow, and children can reach their full potential. Let’s not lose the momentum we’ve built. The future of our state depends on it.

Please use the form below to have your voice heard.