With the deepening understanding of the importance of the early years for preparing children to enter and then succeed in school, federal, state, and local policymakers in the United States have been increasing the public-sector investment in early care and education (ECE) programs, both on a targeted and a universal basis. The state of Vermont has expanded access to and funding for subsidies to make child care more affordable for families with lower incomes, gradually expanded a universal preschool program for three- and four-year-olds that has one of the highest enrollment rates in the country, and deployed a quality recognition and improvement system that has improved ECE programs in the public and private sectors. As part of Act 45 passed in 2021, the Vermont legislature and governor signaled their interest in further exploration of options for continued expansion of ECE subsidies, with the goal of capping the share of family income that goes toward ECE cost at 10 percent while also substantially increasing the compensation for the ECE workforce to levels that are commensurate with skills and job requirements. Act 45 requested a "financing study" to estimate the cost of achieving a high-quality ECE system with a well-compensated workforce, accompanied by a sliding-scale subsidy system capping family out-of-pocket cost at 10 percent of family income. The Vermont legislature further charged the study to identify sources of stable long-term funding to cover the added cost of the expanded subsidies and further shift toward high-quality care. Another goal was to model the economic and fiscal impacts of the policy changes.