BRISTOL, PA — Governor Josh Shapiro used a Wednesday visit to a Bucks County child care center to spotlight a major workforce initiative included in Pennsylvania’s newly enacted 2025–26 budget: a statewide recruitment and retention bonus program for child care workers. The plan allocates $25 million to support roughly 55,000 employees across licensed Child Care Works providers.
During the event at Children of God Educational Services, Shapiro and Department of Human Services Secretary Dr. Val Arkoosh outlined how the bonuses — about $450 per worker annually — aim to stabilize a sector strained by low wages and persistent staffing shortages. Pennsylvania currently has around 3,000 vacant child care positions, limiting providers’ capacity and leaving an estimated 25,000 children without available slots.
Shapiro said improving compensation is essential for families and the broader economy. He noted that while the state has expanded tax credits to help parents afford care, access remains hindered if providers cannot hire and retain staff. The budget also includes an additional $7.5 million for Pre-K Counts to boost educator wages and $10 million for Early Intervention services.
Arkoosh emphasized the long-term value of high-quality early learning, calling child care workers the foundation of children’s educational and social development. Program stakeholders at the event echoed that message, including the center’s founder, Valerie Hamilton, who said the bonuses will help stabilize operations in facilities where nearly all children rely on subsidies.
The budget also debuts the Working Pennsylvanians Tax Credit, modeled on the federal Earned Income Tax Credit. Beginning next tax season, the program will provide $193 million in relief to nearly 940,000 workers statewide.
Lawmakers from both parties praised the child care investments as a necessary response to rising costs and workforce pressures. Senator Steve Santarsiero and Representative Tina Davis both said strengthening staff recruitment and retention is key to making child care more affordable and accessible for working families.
The administration will roll out the recruitment and retention bonuses later this fiscal year.
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