diff --git a/changelog.d/vt-ccfap-care-used.fixed.md b/changelog.d/vt-ccfap-care-used.fixed.md
new file mode 100644
index 00000000000..7230fcb5263
--- /dev/null
+++ b/changelog.d/vt-ccfap-care-used.fixed.md
@@ -0,0 +1 @@
+Vermont no longer pays a child care subsidy for a child with no care hours and no bill, and caps it at any bill before December 17, 2023. New Hampshire no longer pays its disability supplement for a child with no charge.
diff --git a/policyengine_us/parameters/gov/states/vt/dcf/ccfap/rates/pays_above_provider_charge.yaml b/policyengine_us/parameters/gov/states/vt/dcf/ccfap/rates/pays_above_provider_charge.yaml
new file mode 100644
index 00000000000..02d0a8b3788
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/vt/dcf/ccfap/rates/pays_above_provider_charge.yaml
@@ -0,0 +1,14 @@
+description: Vermont pays the state rate above a provider's charge under the Child Care Financial Assistance Program, if this is true.
+
+metadata:
+  unit: bool
+  period: year
+  label: Vermont CCFAP pays state rate above provider charge
+  reference:
+    - title: CCFAP Understanding Payments, question 3
+      href: https://outside.vermont.gov/dept/DCF/Shared%20Documents/CDD/CCFAP/CCFAP-Understanding-Payments.pdf#page=1
+
+# Before this date Vermont paid the lesser of the state rate and the provider's rate.
+values:
+  2009-02-09: false
+  2023-12-17: true
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nh/dhhs/ccap/nh_ccap.yaml b/policyengine_us/tests/policy/baseline/gov/states/nh/dhhs/ccap/nh_ccap.yaml
index 3e9e312a8ec..427470e1f1f 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/nh/dhhs/ccap/nh_ccap.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/nh/dhhs/ccap/nh_ccap.yaml
@@ -334,3 +334,59 @@
     # Monthly = 288.46 * 52/12 = $1,250
     # Benefit capped at actual expenses, NOT inflated by negative income
     nh_ccap: 1_250
+
+- name: Case 12, disabled child with no charge draws no supplement.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 5
+        is_disabled: true
+        nh_ccap_eligible_child: true
+        nh_ccap_payment_rate: 280
+        nh_ccap_disability_supplement: 100
+        pre_subsidy_childcare_expenses: 0
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        nh_ccap_eligible: true
+        nh_ccap_cost_share: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: NH
+  output:
+    nh_ccap: 0
+
+- name: Case 13, supplement stays outside the cap when the cost share covers the charge.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 5
+        is_disabled: true
+        nh_ccap_eligible_child: true
+        nh_ccap_payment_rate: 280
+        nh_ccap_disability_supplement: 100
+        pre_subsidy_childcare_expenses: 5_200
+        # $5,200/yr = $100/week
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        nh_ccap_eligible: true
+        nh_ccap_cost_share: 150
+    households:
+      household:
+        members: [person1, person2]
+        state_code: NH
+  output:
+    # base_payment = max(min($100, $280) - $150, 0) = $0
+    # Weekly: $0 + $100 disability supplement = $100
+    # Monthly: $100 * (52/12) = $433.33
+    nh_ccap: 433.33
diff --git a/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/ccfap/vt_ccfap.yaml b/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/ccfap/vt_ccfap.yaml
index c5af9a2c7a7..8d889ccf848 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/ccfap/vt_ccfap.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/vt/dcf/ccfap/vt_ccfap.yaml
@@ -335,3 +335,180 @@
     # Monthly rate = $439 * 52 / 12 = $1,902.33
     # Benefit = max(1,902.33 - 0, 0) = $1,902.33
     vt_ccfap: 1_902.33
+
+- name: A child with no care hours and no bill draws no payment.
+  absolute_error_margin: 0.01
+  period: 2025-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 52_875
+      person2:
+        age: 3
+        is_tax_unit_dependent: true
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        meets_ccdf_activity_test: true
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    vt_ccfap_eligible: true
+    vt_ccfap: 0
+
+- name: A bill below the state rate still draws the state rate.
+  absolute_error_margin: 0.01
+  period: 2025-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 52_875
+      person2:
+        age: 3
+        is_tax_unit_dependent: true
+        vt_ccfap_provider_type: LICENSED_CENTER
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        meets_ccdf_activity_test: true
+        spm_unit_pre_subsidy_childcare_expenses: 2_000
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    # No hours reads as part time, so $240 a week for a preschooler at a licensed
+    # center, less a $100 weekly family share: $140 * 52 / 12 = $606.67.
+    vt_ccfap: 606.67
+
+- name: Only the child in care draws the rate.
+  absolute_error_margin: 0.01
+  period: 2025-01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income: 52_875
+      person2:
+        age: 3
+        is_tax_unit_dependent: true
+        vt_ccfap_provider_type: LICENSED_CENTER
+        childcare_hours_per_week: 40
+      person3:
+        age: 4
+        is_tax_unit_dependent: true
+        vt_ccfap_provider_type: LICENSED_CENTER
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        meets_ccdf_activity_test: true
+        vt_ccfap_family_share: 0
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: VT
+  output:
+    # $439 a week for one full-time preschooler: $439 * 52 / 12 = $1,902.33.
+    vt_ccfap: 1_902.33
+
+- name: Before December 17, 2023, the family's bill caps the state rate.
+  absolute_error_margin: 0.01
+  period: 2023-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 3
+        vt_ccfap_eligible_child: true
+        vt_ccfap_state_rate: 325
+        pre_subsidy_childcare_expenses: 10_000
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        vt_ccfap_eligible: true
+        vt_ccfap_family_share: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    # $10,000 / 52 = $192.31 a week, below the $325 state rate: $10,000 / 12.
+    vt_ccfap: 833.33
+
+- name: Before December 17, 2023, care hours with no bill leave the charge unknown.
+  absolute_error_margin: 0.01
+  period: 2023-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 3
+        vt_ccfap_eligible_child: true
+        vt_ccfap_state_rate: 325
+        childcare_hours_per_week: 40
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        vt_ccfap_eligible: true
+        vt_ccfap_family_share: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    # Nothing caps the rate: $325 * 52 / 12 = $1,408.33.
+    vt_ccfap: 1_408.33
+
+- name: Before December 17, 2023, a child with no hours and no bill draws nothing.
+  absolute_error_margin: 0.01
+  period: 2023-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 3
+        vt_ccfap_eligible_child: true
+        vt_ccfap_state_rate: 325
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        vt_ccfap_eligible: true
+        vt_ccfap_family_share: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    vt_ccfap: 0
+
+- name: From December 17, 2023, the state rate stands above the bill.
+  absolute_error_margin: 0.01
+  period: 2024-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 3
+        vt_ccfap_eligible_child: true
+        vt_ccfap_state_rate: 439
+        pre_subsidy_childcare_expenses: 10_000
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        vt_ccfap_eligible: true
+        vt_ccfap_family_share: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: VT
+  output:
+    # $439 * 52 / 12 = $1,902.33.
+    vt_ccfap: 1_902.33
diff --git a/policyengine_us/tests/test_child_care_subsidy_needs_care.py b/policyengine_us/tests/test_child_care_subsidy_needs_care.py
new file mode 100644
index 00000000000..f8e0d001ebd
--- /dev/null
+++ b/policyengine_us/tests/test_child_care_subsidy_needs_care.py
@@ -0,0 +1,75 @@
+"""A child care subsidy pays for care.
+
+Invariant, in every state and for any family: children with no child care bill
+and no care hours draw no subsidy, so child_care_subsidies is 0. Vermont and New
+Hampshire broke this until they gated their payments on care.
+
+This sweeps all 51 programs at once. YAML can pin one family in one state, but it
+can't assert one rule across every state and a generated family, and one
+simulation holds all 51 households, so each example builds one model.
+"""
+
+from hypothesis import given, settings
+from hypothesis import strategies as st
+
+from policyengine_us import Simulation
+
+YEAR = 2026
+STATES = (
+    "AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO "
+    "MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY"
+).split()
+
+
+def situation(earnings, child_ages, disabled):
+    people, tax_units, spm_units, families, marital_units, households = (
+        {} for _ in range(6)
+    )
+    for state in STATES:
+        parent = f"{state}_parent"
+        children = [f"{state}_child_{i}" for i in range(len(child_ages))]
+        members = [parent, *children]
+        people[parent] = {
+            "age": {YEAR: 30},
+            "employment_income": {YEAR: earnings},
+            "weekly_hours_worked_before_lsr": {YEAR: 40},
+            "weeks_worked": {YEAR: 52},
+        }
+        for child, age in zip(children, child_ages):
+            people[child] = {
+                "age": {YEAR: age},
+                "is_disabled": {YEAR: disabled},
+                "is_tax_unit_dependent": {YEAR: True},
+            }
+        tax_units[state] = {"members": members}
+        families[state] = {"members": members}
+        marital_units[state] = {"members": [parent]}
+        spm_units[state] = {
+            "members": members,
+            "spm_unit_pre_subsidy_childcare_expenses": {YEAR: 0},
+            "meets_ccdf_activity_test": {YEAR: True},
+        }
+        households[state] = {"members": members, "state_name": {YEAR: state}}
+    return {
+        "people": people,
+        "tax_units": tax_units,
+        "families": families,
+        "marital_units": marital_units,
+        "spm_units": spm_units,
+        "households": households,
+    }
+
+
+@settings(max_examples=8, deadline=None)
+@given(
+    earnings=st.integers(0, 60_000),
+    child_ages=st.lists(st.integers(0, 12), min_size=1, max_size=2),
+    disabled=st.booleans(),
+)
+def test_no_care_draws_no_subsidy(earnings, child_ages, disabled):
+    simulation = Simulation(situation=situation(earnings, child_ages, disabled))
+    subsidies = simulation.calculate("child_care_subsidies", YEAR)
+    paying = {
+        state: float(amount) for state, amount in zip(STATES, subsidies) if amount != 0
+    }
+    assert paying == {}
diff --git a/policyengine_us/variables/gov/states/nh/dhhs/ccap/nh_ccap.py b/policyengine_us/variables/gov/states/nh/dhhs/ccap/nh_ccap.py
index d5f83fd5308..09a1f3f5638 100644
--- a/policyengine_us/variables/gov/states/nh/dhhs/ccap/nh_ccap.py
+++ b/policyengine_us/variables/gov/states/nh/dhhs/ccap/nh_ccap.py
@@ -33,9 +33,12 @@ def formula(spm_unit, period, parameters):
         per_child_cost_share[mask] = family_cost_share[mask] / n_eligible_children[mask]
         per_child_cost_share_broadcast = spm_unit.project(per_child_cost_share)
 
-        # He-C 6910.17(g): disability supplement is additional, outside the min
+        # He-C 6910.17(g): disability supplement adds to the standard rates, outside
+        # the min. Those rates pay for care, so a child with no charge draws none.
         base_payment = max_(capped_rate - per_child_cost_share_broadcast, 0)
-        per_child_weekly_payment = base_payment + disability_supplement
+        per_child_weekly_payment = base_payment + disability_supplement * (
+            annual_expense > 0
+        )
         per_child_monthly_payment = (
             per_child_weekly_payment * weeks_per_month * is_eligible_child
         )
diff --git a/policyengine_us/variables/gov/states/vt/dcf/ccfap/vt_ccfap.py b/policyengine_us/variables/gov/states/vt/dcf/ccfap/vt_ccfap.py
index c6cacec5c1d..70c71b68269 100644
--- a/policyengine_us/variables/gov/states/vt/dcf/ccfap/vt_ccfap.py
+++ b/policyengine_us/variables/gov/states/vt/dcf/ccfap/vt_ccfap.py
@@ -9,20 +9,37 @@ class vt_ccfap(Variable):
     defined_for = "vt_ccfap_eligible"
     label = "Vermont Child Care Financial Assistance Program benefit"
     reference = (
+        "https://outside.vermont.gov/dept/DCF/Shared%20Documents/CDD/CCFAP/CCFAP-Regulations.pdf#page=13",
         "https://outside.vermont.gov/dept/DCF/Shared%20Documents/CDD/CCFAP/CCFAP-Regulations.pdf#page=17",
         "https://legislature.vermont.gov/statutes/section/33/035/03512",
     )
 
     def formula(spm_unit, period, parameters):
-        # Models the post-2023-12-16 regime: payment is based on the state
-        # rate regardless of the provider's charges. Prior to 2023-12-17,
-        # Vermont paid the lesser of the state rate and the provider's rate.
+        # From 2023-12-17 payment is based on the state rate regardless of the
+        # provider's charges. Before then, Vermont paid the lesser of the state
+        # rate and the provider's rate, and the family's bill stands in for that.
+        # With no bill the charge is unknown, so nothing caps the state rate. The
+        # model reads parameters at the start of each month, so all of December
+        # 2023 falls under the earlier rule.
         # Source: CCFAP Understanding Payments (Q3 and "Jane Smith" example)
         # https://outside.vermont.gov/dept/DCF/Shared%20Documents/CDD/CCFAP/CCFAP-Understanding-Payments.pdf
+        # CCFAP Regulations V pays from the first day of eligibility and actual
+        # attendance, so a child who attends no provider draws nothing. Care hours
+        # or a bill stand in for attendance.
+        p = parameters(period).gov.states.vt.dcf.ccfap.rates
         person = spm_unit.members
         eligible_child = person("vt_ccfap_eligible_child", period)
-        weekly_rate = person("vt_ccfap_state_rate", period)
-        total_weekly_rate = spm_unit.sum(weekly_rate * eligible_child)
+        annual_bill = person("pre_subsidy_childcare_expenses", period.this_year)
+        in_care = (person("childcare_hours_per_week", period.this_year) > 0) | (
+            annual_bill > 0
+        )
+        state_rate = person("vt_ccfap_state_rate", period)
+        weekly_rate = where(
+            p.pays_above_provider_charge | (annual_bill == 0),
+            state_rate,
+            min_(state_rate, annual_bill / WEEKS_IN_YEAR),
+        )
+        total_weekly_rate = spm_unit.sum(weekly_rate * eligible_child * in_care)
         monthly_rate = total_weekly_rate * WEEKS_IN_YEAR / MONTHS_IN_YEAR
         family_share = spm_unit("vt_ccfap_family_share", period)
         return max_(monthly_rate - family_share, 0)