Shapiro Administration is Making Child Care More Affordable & Available, Proposing Additional $10 Million to Increase Bonuses for Child Care Workers by 40 Percent | Department[...]

Governor Josh Shapiro doubles down on the success of the child care recruitment and retention bonuses and aims to increase payments for child care workers in the proposed 2026-27 Budget.

Wescosville, PA - Today, leaders from the Pennsylvania Department of Human Services (DHS) highlighted how Governor Josh Shapiro's 2026-27 Budget Proposal builds on his Administration's efforts to make child care more affordable and available through an additional $10 million investment in the successful Child Care Recruitment and Retention Program.

DHS Executive Deputy Secretary Andrew Barnes and Office of Child Development and Early Learning Deputy Secretary Shante' Brown visited the Brookside Children's Early Education Center to share how that additional investment would stabilize the child care workforce and support employees, bringing the total investment to $35 million. The additional funds would increase bonuses for child care workers at licensed child care centers in the federal Child Care Works (CCW) program 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 Executive Deputy Secretary Barnes. "The Child Care Recruitment and Retention Program has been an effective tool to invest in high-quality care and support our dedicated providers and educators who show up every day to help our children grow and thrive. The Governor's proposed budget aims to build off this success and further support our hardworking child care workforce."

In the 2025-26 budget, Governor Shapiro secured $25 million in new funds to support approximately 55,000 child care workers with at least $450 retention bonuses. Applications closed for the first round of grants in January, with more than 4,300 child care providers applying. Once all retention bonuses are paid, remaining funds will be used to help support child care providers in recruiting staff with one-time incentive payments.

Child care and early learning are critical to child development and set young Pennsylvanians up for success - and a strong child care workforce ensures parents can continue to pursue their careers even after having children. Child care workers are the workforce behind the workforce. However, access to quality child care remains an issue for many Pennsylvania families, and staffing shortages and low wages at child care centers continue to plague an already vulnerable system.

In addition to staff bonus increases to further support Pennsylvania's child care and early learning programs, the 2026-27 Budget Proposal includes;

• An additional $7.5 million for the Pre-K Counts program to help providers raise wages and stabilize the early educator workforce; and
• $2 million for the Head Start State Supplemental program to help providers raise wages and stabilize the early educator workforce.

Building on the Shapiro Administration's Investments in Pennsylvania's Families and Strengthening the Child Care Workforce

These investments build on the work the Shapiro Administration has done during the past three years. Since 2023, DHS has invested in access to care by increasing base reimbursement rates for providers participating in Child Care Works to the 75th percentile of private pay rates for the first time, helping Pennsylvania meet federal best practices and providing greater financial support to child care providers and their dedicated workforce. This allows CCW providers to invest in quality of care and their workforce amid the continued challenges of operating.

Governor Shapiro signed into law a historic expansion of the Child and Dependent Care Enhancement Tax Credit that increases Pennsylvania's match from 30 to 100 percent of the federal credit, increasing the maximum benefit from $630 to $2,100 per family. In 2024, this increase delivered $136.5 million to 218,953 working families. Last year, Governor Shapiro worked with the General Assembly to create the Employer Child Care Contribution Tax Credit, which allows employers who contribute to employees' child care costs to claim a tax credit of up to 30 percent of eligible contributions, capped at $500 per employee.

Brookside Children's Early Education Center's mission is "Striving for Excellence in Early Childhood Education."

"Our quality teachers share a passion for Early Childhood Education, and they provide children with a safe, loving, and learning environment each day. Any additional support our Governor Shapiro and his administration can provide for the Early Education field is greatly appreciated. It helps us show our teachers our appreciation for the hard work they do in shaping the minds of our future leaders," said Devon Raad, Brookside Children's Early Education Center Owner.

Learn more about Child Care Works and find more information on certified child care providers at https://www.findchildcare.pa.gov.

Read more about Governor Shapiro's 2026-27 Budget Proposal.