Reach Up: Helping Vermont Families Thrive

Reach Up is Vermont’s safety net program for families, ensuring children’s basic needs—food, housing, and clothing—are met. It’s Vermont’s version of the federal Temporary Assistance for Needy Families (TANF) program, but most federal funds go to other work-support programs like childcare and the Earned Income Tax Credit (EITC), and Reach Up is primarily state-funded. This allows for a flexible program design that strives to be person-centered while complying with federal TANF rules.

The Problem:

Reach Up is meant to support families, but financial limits make it difficult for them to succeed. The income eligibility threshold is so low that even small earnings can cut families off from the program, stripping away vital support. Worse, the program bases housing and cost-of-living budgets on outdated figures—2001 for housing and 2019 for other needs—then slashes that amount in half before distributing assistance. This leaves a family of three with just $880 per month to cover most expenses, which is simply impossible.

As a result, families are forced into crisis mode, seeking emergency housing, food pantries, and urgent medical transportation instead of building long-term stability. Research shows that persistent poverty also increases the risk of children being placed in foster care, a traumatic and costly outcome.

The Cost of Inaction

While the state increases the cost-of-living adjustments for other programs, Reach Up families remain stuck at the same inadequate funding levels. Each year, the Department for Children and Families (DCF) reports on Reach Up’s impact, highlighting the growing gap between what families receive and the bare minimum they need to survive.

The Solution

We must fully fund Reach Up to give Vermont families the stability and opportunity they deserve. No child should go without basic needs because of outdated policies and insufficient support. It’s time to invest in families and end poverty.

1. Index basic needs grants to DCF’s current year cost of living calculation.

2. Eliminate the “ratable reduction” as it currently exists. Ensure that the cumulative benefits a family receives assures their ability to meet their children’s minimum basic needs.

Policy Questions:

1. Why won’t the Governor and Legislature increase financial support for Vermont children in poverty and deep poverty (under 50% FPL), whose wellbeing is at risk, and who are among the most vulnerable to the impacts of inflation and the housing crisis?

2. What are the downstream human and state budget impacts of shortchanging children and families in need of support?