Family caregivers delivered more than $1 trillion worth of unpaid care to older adults and people with disabilities in the U.S., according to an AARP Public Policy Institute report released Thursday.
The findings underscore the scale of an often invisible workforce and carry particular weight in Vermont, which has one of the oldest populations in the country and is among the least affordable states for long-term care. And they come as state lawmakers weigh legislation to provide some financial relief to caregivers.
According to the report, Vermont had an estimated 118,000 adult caregivers providing 85 million hours of unpaid care valued at more than $2 billion.
The report used 2024 data, and found nationally, work by family caregivers was equivalent to nearly 24 million full‑time jobs. If counted as a formal labor sector, it said family caregiving would rank among the largest in the U.S. economy.
"Behind these numbers are people paying an emotional toll and a financial one," AARP’s CEO, Dr. Myechia Minter-Jordan, said at a virtual press briefing. "Caregivers are stretching their finances, sacrificing their own well being and too often, they are doing it alone."
Minter-Jordan said family caregivers reportedly spend on average 27 hours per week on caregiving and are providing increasingly complex medical services.
Nancy LeaMond, AARP’s executive vice president, said the value of family caregiving exceeds total federal, state and local Medicaid spending nationwide, and is almost double all out-of-pocket health care spending.
“This is not just a family issue, it’s a labor force issue, an economic issue and a health care system issue,” LeaMond said.
The report comes on the heels of a separate study AARP released earlier this month that shows the cost of assisted living and home-based care nationally has surged nearly 50% since 2019, putting even more pressure on family caregivers.
The spike is due to a variety of factors. Hourly wages for workers have gone up, said AARP spokesperson Laura McDonough, and some patients are dealing with increasingly complex health issues. Meanwhile, people's annual incomes aren't keeping up.
In 2024, McDonough said the average Vermonter aged 65 and older earned less than $61,000 a year.
“But an average year of home care can cost nearly $68,000 and assisted living close to $95,000," she said, adding that these stark differences between income and costs of services make Vermont one of the least affordable states when it comes to long-term care.
"It’s really devastating what these numbers are showing us and its forcing more moderate-income Vermonters to rely on family caregivers or do without needed care," she said.
AARP officials urge policymakers to respond by legislating financial relief for caregivers, creating a national paid family and medical leave policy and providing greater respite services.
Oklahoma became the first state in 2023 to pass a comprehensive statewide caregiving tax credit to put money back in the pockets of family caregivers. Nebraska followed suit in 2024. Twelve states, including Vermont, have considered statewide caregiver tax credit legislation this year.
In Vermont, the Senate is considering whether to provide a tax credit up to $2,500 annually for expenses incurred by caregivers supporting family members with long-term care needs.
It's unclear at this time where that proposal stands, said Rep. Daniel Noyes of Wolcott, who chairs the Older Vermonters Caucus. But he said he hopes the new report by AARP on caregivers' contributions will help convince his colleagues that it's needed.
