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Child Care Tuition Increase Limit

Category
May 21, 2025

 

Beginning July 1, 2025 and ending June 30, 2026, regulated child care providers may not increase their annual tuition rates by more than 5.85%.

33 V.S.A. § 3517 states:

A child care provider shall ensure that its tuition rates are available to the public. A regulated child care provider shall not impose an increase on annual child care tuition that exceeds 1.5 times the most recent annual increase in the NAICS code 611, Educational Services. This amount shall be posted on the Department’s website annually.

The underlined portion of the above statute becomes effective July 1, 2025. This provision was established by Act 76 of 2023; it initially went into effect in July 2023 and was temporarily repealed by the Legislature from May 2024 to June 2025 to provide additional time for providers to adapt to the change.

Please consult this memo for further guidance, including how to perform the necessary calculation: Act 76 Changes: Tuition Rates and Allowability of Additional Fees

As directed, CDD has also posted notice of this new requirement on its website.