HARRISBURG, PA — Governor Josh Shapiro and top state officials last week highlighted major new investments aimed at strengthening Pennsylvania’s child care workforce, expanding access to quality early learning, and transforming rural health systems across the Commonwealth — a pair of initiatives supporters say will bolster working families, support local economies, and improve health outcomes for millions of residents.
On Wednesday, Shapiro joined Department of Human Services Secretary Dr. Val Arkoosh, lawmakers, and educators at Children of God Educational Services in Bucks County to outline child care workforce investments secured in the 2025–26 state budget. The centerpiece is a new $25 million Child Care Staff Recruitment and Retention Program, designed to stabilize a sector struggling with chronic staffing shortages.
The program will provide roughly $450 bonuses to about 55,000 child care workers employed by licensed Child Care Works providers. State officials say the additional support is vital at a time when low wages have forced providers to reduce classroom capacity and turn families away.
“Affordability isn’t enough — we also have to expand access,” Shapiro said. “When parents can’t find affordable, reliable care, they can’t work — and our economy suffers. These bonuses will help strengthen the workforce, open more slots for children, and make sure families across Pennsylvania can find the care they need.”
Pennsylvania currently has 3,000 unfilled child care jobs, vacancies that limit enrollment for nearly 25,000 children statewide. Providers say staffing shortages remain one of the largest barriers to expanding access for working families.
The budget also includes $7.5 million for Pre-K Counts to help providers raise wages for early educators and $10 million for Early Intervention services for children experiencing developmental delays. Together, officials say, the investments offer targeted support across the early childhood pipeline.
“Early childhood educators provide a foundation that will benefit children throughout their entire lives,” Arkoosh said. “The benefits of high-quality child care to our kids, their parents and caregivers, and to our economy are not possible without a thriving workforce of child care professionals.”
Children of God Educational Services, where last week’s event was held, serves approximately 55 children year-round and relies heavily on state-supported programs. Its founder, Valerie Hamilton, called the new workforce investment “a truly monumental” step for a field that has long struggled to attract and retain staff.
“Child care providers are the workforce behind the workforce,” Hamilton said. “These new recruitment and retention bonuses will help stabilize this field and strengthen communities across the Commonwealth.”
Students entering the field also welcomed the news. Madison Peneguy, a senior at Bristol High School who works in child care, said the incentive “gives me hope for the future” in a profession she has long aspired to pursue.
The new investments come alongside the rollout of the Working Pennsylvanians Tax Credit, a state-level benefit modeled after the federal Earned Income Tax Credit. The program is expected to deliver $193 million in tax relief to more than 940,000 working Pennsylvanians beginning next tax season.
State officials say these combined efforts build on past expansions championed by the Shapiro Administration, including a major increase in the Child and Dependent Care Enhancement Tax Credit and a new Employer Child Care Contribution Tax Credit designed to help businesses support working parents.
STATE UNVEILS RURAL HEALTH TRANSFORMATION PLAN
A day after highlighting child care investments, the Shapiro Administration announced a major rural health reform effort — the Rural Health Transformation Plan (RHTP) — representing Pennsylvania’s application for up to $200 million annually for five years through the federal Rural Health Transformation Fund.
If approved by the Centers for Medicare and Medicaid Services, Pennsylvania could receive up to $1 billion to strengthen rural health care systems, expand access to essential services, and improve long-term outcomes for residents in remote and underserved communities.
“Pennsylvania is home to the third-largest rural population in the country, and our rural communities face unique challenges,” Arkoosh said. “A strong, accessible, affordable health care system is the foundation of any healthy community.”
Rural hospitals, emergency medical services, maternity care, behavioral health services, and long-term care facilities would all be eligible for expanded support under the plan. The RHTP focuses on:
- Technology & Infrastructure upgrades, including telehealth expansion
- Workforce recruitment and retention, with scholarship and housing incentives
- Maternal health care coordination between prenatal, postpartum, and behavioral health providers
- Behavioral health improvements, including 988 crisis system expansion
- Transition services for aging adults returning home from hospitals
- EMS and transportation modernization for rural regions
Health Secretary Dr. Debra Bogen said the plan was shaped through more than two years of listening sessions, regional summits, and feedback from rural communities across the state. Transportation gaps, maternity care shortages, and workforce deficits emerged as top concerns.
Through discussions and regional convenings, Bogen said, “we consistently heard a need to focus our work on transportation, EMS, maternal health, workforce recruitment and retention.”
The federal program was created under legislation signed by President Trump on July 4, 2025, which set aside $50 billion in one-time rural health grants over five years. CMS is expected to decide on state applications by December 31, 2025.
ADDITIONAL RURAL HEALTH INVESTMENTS
Alongside the proposed RHTP, the 2025–26 budget includes:
- $10 million for rural hospitals, leveraging an additional $25.1 million in federal matching funds
- Expanded postpartum depression screenings
- Increased maternal and mental health supports
Earlier this month, state officials highlighted the budget’s rural health investments at the Northern Tier Regional Rural Healthcare Summit in Williamsport, hosted by Pennsylvania College of Technology and the Guthrie Clinic. Local leaders, health care providers, and advocates from seven counties participated in discussions about regional challenges and areas for collaboration.
“It was inspiring to see leaders unite around strengthening rural health care,” said Guthrie Clinic President and CEO Dr. Edmund Sabanegh. “Their partnership and the insights shared today will help advance collaboration and expand access to care.”
A YEAR OF SOCIAL AND ECONOMIC SUPPORT FOR FAMILIES
With two major announcements in as many days — one focused on early childhood educators, the other on rural health transformation — state officials say the new budget reflects a clear priority: strengthening Pennsylvania families and communities.
Senator Steve Santarsiero, who represents Bucks County, said child care remains one of the biggest expenses facing families in his district.
“When families can’t afford child care, a parent is often forced to leave the workforce,” Santarsiero said. “Early childhood educators are the backbone of our system, and investing in staff retention and recruitment is essential.”
Representative Tina Davis said the bipartisan budget “delivers real results for the people of Pennsylvania,” supporting both child care workers and the families who depend on them.
With new tax credits taking effect, expanded support for child care providers, and a historic push to reform rural health care, the Shapiro Administration says its goal is to help working families remain part of a growing and stable workforce — no matter where they live.
For more information on rural health initiatives, visit dhs.pa.gov/ruralhealth.
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