Budget & Taxes

H.248 amends existing laws regarding child care grants and financial assistance programs. It allows the Commissioner for Children and Families to provide supplemental financial relief to child care programs at risk of closing, particularly those in high-poverty areas. The bill also expands eligibility for the Child Care Financial Assistance Program, enabling families with incomes up to 575% of the federal poverty level to receive subsidies for child care needed for employment or training. Additionally, it revises payment schedules for child care providers, requiring timely payments and reducing the rate difference between family child care homes and center-based programs.

Vermont's S.51 creates a $1,000-per-child refundable tax credit for residents with children under age 6, regardless of whether they or their children have a federal tax ID number. It also expands the state's earned income tax credit to cover individuals who qualify federally but lack required tax IDs, and adjusts exclusions for Social Security and Civil Service retirement income based on income thresholds (e.g., full exclusion for single filers earning ≤$55,000 or married couples ≤$70,000). The bill directly affects low-to-moderate-income families, retirees, and individuals with limited access to federal tax IDs. Signed into law by Governor on June 25, 2025, it modifies Vermont's tax code to broaden eligibility for existing federal credit programs.