64% of Vermont Child Care Businesses Are Optimistic About the Future, Highest Among Five States Surveyed

FOR IMMEDIATE RELEASE: October 16, 2026 

Media Contact: Erin Roche, Senior Advisor, First Children’s Finance Vermont  

802-341-0368 | erinr@firstchildrensfinance.org 

Vergennes — Vermont’s child care businesses report stronger finances, greater optimism and lower financial risk than those in Iowa, Michigan, Minnesota, and Oregon, according to a new national report from First Children’s Finance assessing business stability in child care. In 2025, 43% of Vermont child care centers opened new classrooms, reopened previously closed classrooms or added a new site—the highest rate among the five states surveyed. Among 152 Vermont child care businesses surveyed, 64% said they were optimistic about the future of their business. 

The findings come as Vermont’s child care system shows signs of greater stability after years of contraction. For providers, that creates more room to sustain and grow; for families, it offers greater confidence that care will be available; and for employers, it strengthens an essential part of the workforce infrastructure. 

The report offers a snapshot of child care business conditions across the country, drawing on responses from nearly 2,000 providers. Together, the five states span the country, from urban centers to rural communities, and are facing many of the same demographic and financial shifts shaping child care nationwide. Vermont was also the only state where more providers reported that their financial stability had improved than declined in 2025. 

That change marks a reversal of a years-long, crisis-level decline in Vermont’s child care supply. After years of losing child care programs and capacity, the number of programs has now grown for two consecutive years, while licensed capacity has increased by more than 1,100 spaces, much of that growth coming from existing programs expanding.  

Act 76, Vermont’s 2023 child care law, provides important context for the findings. The law created a dedicated, payroll-tax-funded source of child care investment, directing over $100 million annually into the sector. The law was deliberately designed to phase in that investment over two years rather than introduce sweeping changes all at once. That gave providers time to plan and build capacity as the new funding reached the system. 

“Vermont child care businesses are more sustainable today because of Act 76,” said Chelsea Chase, program director of Perkinsville Preschool and Child Care. “Act 76 has allowed me to expand my program and add high-quality slots so more families can work. It has also allowed me to pay my employees a fair living wage for the hard work they do and invest in better, more targeted training, program enrichment, and high-quality supplies and materials that directly affect children’s daily experiences. I’m excited about what this investment has made possible, but we still have work to do to support the creation of much-needed child care slots.” 

“Small businesses, including child care businesses, thrive in an environment of steady, predictable growth, and that’s why the way Vermont implemented Act 76 matters,” said Erin Roche, senior advisor at First Children’s Finance Vermont. “With support from the state of Vermont, First Children’s Finance provides child care business owners with expert business advice and access to capital. The industry is stronger than it has been in years, giving providers a more stable foundation to meet the challenges of running a child care business, including the rising costs of providing high-quality care.” 

“Reliable child care makes it easier for parents to work and for businesses to keep their teams,” said Christine Dodson, CEO and co-founder of Ava Pods (formerly Mamava). “As a company founded to help make it easier for people to balance work and caregiving, we know how much these things are connected. It’s great to see Vermont’s child care businesses feeling more optimistic about the future. We need to keep investing in child care so that progress can continue.” 

For Vermont employers, that foundation matters beyond the child care sector. Child care businesses are part of the infrastructure that lets parents participate in the workforce, and employers recruit and retain employees. 

The full 2025 Multi-State Child Care Business Sustainability Report is available here. 

About First Children’s Finance: First Children’s Finance (FCF) is a national nonprofit organization dedicated to increasing the supply and sustainability of high-quality child care in rural, urban, and Native communities. FCF Vermont provides business training, technical assistance, and financial tools for child care entrepreneurs and community partners working to strengthen Vermont’s child care system. Learn more at www.firstchildrensfinance.org/vermont.