Governor Josh Shapiro's 2026-27 budget includes a $5 million increase - for a total of $30 million -- to support Pennsylvania's child care workforce for the second year, with bonuses now of at least $540 per employee.

The additional funding doubles down on the success of the child care recruitment and retention bonuses by increasing payments for child care workers.

Pittsburgh, PA - Today, Pennsylvania Department of Human Services (PA DHS) Secretary Dr. Val Arkoosh highlighted a $5 million increase secured in Governor Josh Shapiro's 2026-27 Budget to increase recruitment and retention bonuses for Pennsylvania's dedicated child care workforce. The funding will expand the Child Care Staff Recruitment and Retention program for its second year and further support Pennsylvania's child care workforce who fuel our broader economy by making it easier for parents to go to work. Child care providers are encouraged to apply for the second round of bonuses starting on October 13, 2026.

During a visit to A Place to Grow Learning Center, Secretary Arkoosh emphasized the Shapiro Administration's commitment to supporting the "workforce behind the workforce," and ensuring families have access to high quality, local child care. Investing an additional $5 million in the Child Care Staff Recruitment and Retention program brings much needed support to the child care workforce, bringing the total investment in this budget to $30 million. The additional funds will provide a minimum bonus of $540 per employee at licensed Child Care Works (CCW) providers - an increase over last year's initial bonus by about $100 per employee.

"Early learning and child care providers are the backbone of communities - investing in them ensures that families can continue working while their children receive the educational and social foundation that will benefit them throughout their lives," said Secretary Arkoosh. "Our dedicated, passionate child care workers are the ones who make that possible, and the Shapiro Administration is proud to make these investments that will support Pennsylvania's child care industry and empower our overall economy."

"Child care workers are essential to the strength of our families, our communities, and our economy," said Allegheny County Executive Sara Innamorato. "When we invest in the people who care for and educate our youngest residents, we are also investing in working parents and giving families more stability and opportunity. I'm grateful to the Shapiro Administration for continuing to recognize the importance of this workforce and for making these investments to support child care providers and the families who rely on them every day."

Starting on October 13, eligible providers will be able to submit their application for retention and recruitment bonuses to their local Early Learning Resource Center (ELRC). Applications will be open until November 30, 2026. The ELRC will then distribute retention payments to providers in the amount of at least $540 per qualified employee. Interested child care providers and their staff must meet DHS' program eligibility requirements to receive funding. Once all retention bonuses for staff are paid, remaining funds will be distributed to child care providers to administer as recruitment payments to qualified staff hired after the application period closes.

The child care bonus program was created in the 2025-26 budget with $25 million in new funds to support child care workers with at least $450 retention bonuses. In its first year, more than 4,300 child care providers across the Commonwealth applied for the grant - resulting in Recruitment and Retention Bonuses going to nearly 39,000 individual child care workers.

In addition to staff bonus increases to further support Pennsylvania's child care and early learning programs, the 2026-27 Budget includes an additional $3.5 million for the Pre-K Counts program to help providers raise wages and stabilize the early educator workforce.

A Record of Investing in and Supporting Pennsylvania's 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, 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. This increase has delivered more than $445 million through more than 858,000 tax credits, helping working families throughout PA since 2023. 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.

A Place to Grow Learning Center was established in 2001 and today cares for 225 children, ages 12 weeks through 5 years old, with a dedicated team of 60 teachers. For 25 years, the center's mission has remained unchanged: providing children with a positive first school experience, while creating a love of learning and a lifetime of memories.

"We were so excited to be able to provide our teachers with the Child Care Staff Recruitment and Retention bonuses this year. Our teachers are the heart of A Place to Grow, and it was wonderful to see them receive additional recognition for the incredibly important work they do each day," said Dana Cupples, Owner of A Place to Grow Learning Center. "We are grateful that Governor Shapiro's budget recognizes and values our early childhood educators as much as we do. As we celebrate 25 years at A Place to Grow, we are excited to see this continued investment in the childcare workforce and look forward to even more support for our teachers in the upcoming year."

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.