York, PA – Child care leaders from the Pennsylvania Department of Human Services (DHS) today visited Jack & Jill Nursery in York to discuss Governor Josh Shapiro’s 2025-26 Budget Proposal, which builds on his Administration’s efforts to make child care more affordable for working families and expand and strengthen the child care workforce.
In the 2025-26 budget, the Governor is proposing major investments to recruit and retain child care workers and increase child care services for Pennsylvania families, including:
- $55 million to give child care providers in Pennsylvania’s Child Care Works Program at least $1,000 per employee in recruitment or retention bonuses.
- An additional $10 million through DHS to increase Early Intervention (EI) provider rates, to ensure every Pennsylvania child has the support and resources needed to succeed — regardless of family income.
Investing in the child care workforce ensures that families can continue working while children receive the foundation they need to succeed in school and beyond.
“The Shapiro Administration is committed to the child care industry because we know that an early childhood education shapes educational, social, and emotional development for our youngest Pennsylvanians and provides them with a foundation that will reap benefits throughout their lives,” said Deputy Secretary for the Office of Child Development and Early Learning (OCDEL) Shante’ Brown. “Pennsylvania needs a thriving child care industry, so we must continue to invest in high-quality care that helps our children grow and thrive while allowing parents to work and participate in our economy, all while appropriately compensating the child care providers and educators who do this work every day.”
Early learning and child care programs are an invaluable resource that foster educational and social development for our youngest Pennsylvanians. According to the Centers for Disease Control and Prevention, access to early childhood education improves performance in K-12 schooling, lowers health care costs, and improves employment and earning prospects into adulthood. Child care programs also allow parents to work knowing their children are safe and cared for. The CDC also cites child care as a factor for increased parental employment and income, making this industry an essential cornerstone for a healthy, vibrant economy.
"Jack & Jill Nursery has been around since 1945, and collectively our staff has been in the early childhood education field for 40 years. We're excited to be working with the children in the community, to do what we love to do," said Ruth Leonard, Director at Jack & Jill Nursery. "We need quality staff to come and help us. It's been hard to find people who have a heart for early childhood education, so we're always looking for people to hire and help us so we can fill our rooms and expand our programs."
Investing in Pennsylvania’s Families and Strengthening the Child Care Workforce
Pennsylvania’s child care system serves more than 300,000 children annually across the Commonwealth, including approximately 80,000 children who receive subsidies through the Child Care Works (CCW) Program, Pennsylvania’s state and federally-funded child care program that helps low-income families pay their child care fees.
However, providers are struggling to hire and retain staff – Pennsylvania has 3,000 unfilled jobs in child care, and if we filled those jobs, 25,000 more children in Pennsylvania could have access to child care and parents could have the peace of mind that their kids are well taken care of so they can go to work. Child care centers also report increasing difficulty in filling positions due to low wages, and many are forced to close classrooms or limit enrollment. Without a competitive wage, it remains difficult to attract and retain qualified early child care educators.
The Governor’s proposed investments build on the success the Shapiro Administration has seen during the past two years. Since 2023, DHS has invested more 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.
Additionally, Governor Shapiro signed into law a historic expansion of the Child and Dependent Care Enhancement Tax Credit and created a new tax credit for businesses who want to contribute to their employees’ child care costs. Those two initiatives helped make child care more affordable. DHS also continues to leverage federal funding received by OCDEL to support providers through quality improvement and workforce development and retention programs.
Learn more about Child Care Works and find more information on certified child care providers at www.findchildcare.pa.gov.
