WESCOSVILLE, PA — Pennsylvania officials are proposing an additional $10 million investment in a state program designed to recruit and retain child care workers, part of a broader effort to stabilize the child care workforce and expand access to early learning programs.
What This Means for You
- The proposed state budget includes $10 million more for child care workforce bonuses.
- Retention bonuses for eligible workers would increase from at least $450 to at least $630.
- Officials say the investment aims to stabilize staffing and improve child care availability.
Leaders from the Pennsylvania Department of Human Services highlighted the proposal during a visit Tuesday, March 10, to Brookside Children’s Early Education Center in Lehigh County.
The funding would expand the Child Care Recruitment and Retention Program, bringing the state’s total investment in the program to $35 million.
Supporting Child Care Workers
The program provides financial incentives to help licensed child care centers participating in the federal Child Care Works program recruit and retain staff.
Child Care Works is Pennsylvania’s subsidized child care program that helps eligible families afford care while parents work or attend school.
Under the proposed funding increase, bonus payments for eligible child care workers would rise from at least $450 to at least $630.
“Early learning and child care programs are an invaluable resource that foster educational and social development for our youngest Pennsylvanians and are a catalyst for a healthy, vibrant economy,” said Department of Human Services Executive Deputy Secretary Andrew Barnes.
Previous Funding and Program Demand
In the 2025-26 state budget, officials allocated $25 million to support retention bonuses for child care workers.
The funding supported approximately 55,000 workers across the state.
More than 4,300 child care providers applied for the first round of grants before the application window closed in January.
After retention bonuses are distributed, remaining funds may be used to provide one-time incentive payments to help child care providers recruit new employees.
Additional Early Education Investments
The governor’s proposed 2026-27 budget also includes additional funding for early childhood education programs.
The proposal includes $7.5 million for the Pre-K Counts program and $2 million for the Head Start State Supplemental program.
Both programs help providers increase wages and stabilize the early education workforce.
Addressing Workforce Shortages
Officials say staffing shortages and low wages continue to affect many child care centers across Pennsylvania.
A stable child care workforce is considered critical for both early childhood development and the broader economy because it enables parents to remain in the workforce.
Child care workers are often described by policymakers as “the workforce behind the workforce.”
Previous Policy Changes Supporting Families
Officials said the proposed investments build on other initiatives implemented during the past three years.
The state increased reimbursement rates for Child Care Works providers to the 75th percentile of private pay rates, a benchmark recommended under federal guidance.
Pennsylvania also expanded the Child and Dependent Care Enhancement Tax Credit, increasing the state match from 30 percent to 100 percent of the federal credit.
The change increased the maximum tax benefit from $630 to $2,100 per family and delivered $136.5 million in tax relief to more than 218,000 working families in 2024.
State officials also created the Employer Child Care Contribution Tax Credit, allowing businesses to claim a tax credit of up to 30 percent of eligible child care contributions for employees, capped at $500 per worker.
Brookside Children’s Early Education Center owner Devon Raad said additional support for child care providers helps recognize the role educators play in early childhood development.
“Our quality teachers share a passion for Early Childhood Education, and they provide children with a safe, loving, and learning environment each day,” Raad said.
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