PHILADELPHIA, PA — Thousands of Pennsylvania child care workers are set to receive larger retention bonuses under a proposed state budget expansion, as officials aim to stabilize a workforce facing ongoing shortages and low wages.
What This Means for You
- Child care workers could see bonus payments increase to at least $630
- More than 55,000 workers at participating centers are eligible
- Additional funding aims to improve access to care for working families
State officials said the proposed 2026–27 budget would add $10 million to the Child Care Recruitment and Retention Program, bringing total funding to $35 million.
The program provides payments to workers at licensed providers participating in Child Care Works, a state-supported subsidy system that helps families afford care.
Bonus Program Expansion
In the current 2025–26 budget, $25 million was allocated for retention bonuses of at least $450.
Nearly 39,000 workers are expected to receive payments of about $645 in the first round, with additional funding used to support hiring through one-time incentives.
Officials said more than 4,300 providers applied for the grants.
During a visit to the Parent Infant Center in West Philadelphia, Department of Human Services Secretary Dr. Val Arkoosh highlighted the program’s impact on workers and families.
“High quality child care helps our children grow and thrive while allowing parents to work and participate in our economy,” Arkoosh said.
Local Impact in Philadelphia
The Parent Infant Center, which serves roughly 350 children and employs more than 65 workers, received the largest individual award under the program.
Staff at the center are expected to receive more than $43,000 in total bonus payments from the first round of funding.
Executive Director Jamila Carter said the investment supports both educators and families.
“When we invest in our teachers, we strengthen the quality of care and learning that children receive,” Carter said.
Additional Budget Investments
The proposed budget also includes:
- $7.5 million for the Pre-K Counts program to support wages and workforce stability
- $2 million for the Head Start State Supplemental program for similar purposes
Officials said these investments are intended to address persistent staffing shortages and improve access to early learning programs statewide.
Broader Child Care Strategy
State officials described child care as essential to both early childhood development and workforce participation.
Recent policy changes include expanding the Child and Dependent Care Enhancement Tax Credit, increasing the maximum benefit to $2,100 per family, and creating a tax credit for employers who contribute to employees’ child care costs.
Despite those efforts, officials said access to affordable, high-quality child care remains limited in many areas due to workforce challenges.
The bonus program and proposed funding increases are part of a broader strategy to strengthen the system and support providers across the state.
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