The Child Care Financial Assistance Program (CCFAP) makes payments directly to child care providers on behalf of families using the program. The amount is based on the size and income level of the family, the age of the child or children in care, the type of child care program, the program’s quality designation, and the number of hours that care is needed. Families may pay a co-payment directly to the provider to make up the difference between the amount of the CCFAP and the actual cost of care.

In 2019, the Vermont legislature passed a bill increasing funding of and eligibility for the CCFAP. The changes mean that more families are eligible for assistance and the benefits for families have increased. The new law better aligns rates of reimbursement with the market rates for child care, so that parents’ co-pays are reduced [1,2]. The average family of four pays one fifth of their income for child care [3]. The state’s investments in the CCFAP are aimed at making child care more affordable.

An example of the impact of these changes to the CCFAP is below. For a family of 4 at 200% of the Federal Poverty Level, the co-payment for families (in green) decreases by $171 per month.

Return to the Table of Contents for the 2019 How Are Vermont’s Young Children and Families? report.

1. Department for Children and Families, Child Development Division (2019). FY19 data provided by the Child Development Division Data and Outreach Coordinator.

2. Department for Children and Families, Child Development Division (2019). Child Care Financial Assistance Sliding Fee Scale.

3. Vermont Joint Fiscal Office. (2019). Basic Needs Budget (pg. 13).