Vermont’s payroll tax kicks off to fund Act 76 child care law [Video]

Vermont’s new payroll tax went into effect on July 1 and it’s part of the state legislature’s effort to make child care more affordable.The goal is to increase access to and the quality of services statewide through Act 76, which is expected to invest around $125 million into the child care sector on an annual basis.The law first went into effect in 2023 with the payroll tax not to begin until this summer.Aly Richards, CEO of Let’s Grow Kids, said the impact is already being felt.”We saw in the first quarter of this year, for the first time since 2018, more child care programs opened than closed,” said Richards.Act 76 allocates around $50 million from the state’s general fund and $80 million from the payroll tax to fund different programs and expand access to financial assistance in the state.”It goes basically to humans, every single dollar,” said Richards. “It goes …