Public Assets Institute > Policy Areas > Family Economic Security > Vermonters are weathering the pandemic with federal aid

Vermonters are weathering the pandemic with federal aid

Child tax credit
More than 90 percent of Vermont families with children could receive expanded tax credits under the American Rescue Plan. Starting this summer, as many as 52,000 families could get a refundable federal Child Tax Credit of up to $3,000 per child, $3,600 for children under 6. The one-year change increases the benefit from $2,000 per child and extends eligibility to all lower-income families. Single filers earning up to $75,000 and joint filers up to $150,000 receive the full credit.





Income rise
Vermont’s total personal income increased by 6 percent from 2019 to 2020, thanks to federal pandemic relief including expanded unemployment insurance benefits and direct payments to individuals. Government transfers rose by 35 percent in Vermont, according to newly released data from the Bureau of Economic Analysis. Transfers ordinarily include Social Security, unemployment, medical, and other payments. While net earnings and dividends, interest, and rents fell, they continue to make up the majority of personal income.

Fallen wages
Wages for Vermont workers in hotel and restaurant jobs were down by more than 25 percent—more than $225 million—in 2020 compared with 2019, due to COVID-19. Vermont hospitality workers’ wages saw the steepest drop in New England, and the fifth-largest decrease in the country. Overall Vermont wages and salaries were down 1.6 percent, the 11th-largest loss in the U.S.

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