At Children of God Educational Services in Bristol Borough, Gov. Josh Shapiro announced Wednesday that Pennsylvania will provide $25 million in recruitment and retention bonuses for child care workers as part of the newly signed 2025-2026 state budget.
Advertisements
The governor told local leaders, child care workers, and reports that the program addresses a critical staffing shortage that has left 3,000 positions unfilled across the state’s child care industry.
The Montgomery County Democrat said the bonuses of approximately $450 per worker will support roughly 55,000 child care employees at licensed facilities statewide.
If the vacant positions were filled, providers could serve more children in the commonwealth, which would help families and employers, according to state officials.
Advertisements
“Consider this for a moment. There are 3,000 vacancies in child care all across Pennsylvania today,” Shapiro said. “If we just filled those 3,000 vacancies, there would be 25,000 more slots for young people all across Pennsylvania.”
The Child Care Staff Recruitment and Retention Program is the first time child care has received its own dedicated line item in the state budget in more than 20 years.
Advertisements
Officials said the plan has received support by members from both parties because it is working to stabilize a workforce that has struggled with low wages and high turnover rates.
Pennsylvania Department of Human Services Secretary Dr. Val Arkoosh noted the economic impact of child care accessibility.
A recent study found that Pennsylvania loses more than $6.6 billion annually in economic activity because parents cannot consistently access high-quality child care.
Advertisements
“Early childhood education programs are vital to a child’s educational, social, and emotional development during their youngest years,” Arkoosh said. “The benefits of high-quality child care to our kids, their parents and caregivers, and to our economy are not possible without a thriving workforce of child care professionals.”
The budget also includes an additional $7.5 million for Pre-K Counts to help providers raise wages and stabilize the early educator workforce, along with a $10 million increase for early intervention services supporting families with children experiencing developmental delays.
Advertisements
Madison Peneguy, a 17-year-old Bristol Borough high school senior who works at Children of God Educational Services, spoke about how the incentives can impact career decisions in the field. Her mother has worked in child care for nearly 16 years.
“While I’ve always aspired to follow in her footsteps, I’ve been apprehensive due to the lower wages in this field,” Peneguy said. “However, this new incentive gives me hope for the future of the child care industry and makes me excited to continue this career, hopefully for a long time.”
Advertisements
The announcement builds on previous investments the Shapiro administration has made in child care.
The state tripled the Child and Dependent Care Enhancement Tax Credit, delivering $136.5 million to 218,953 working families last year.
Advertisements
The administration also created the Employer Child Care Contribution Tax Credit, which encourages businesses to contribute to their employees’ child care expenses. Employers can claim a tax credit for up to 30 percent of eligible contributions, capped at $500 per employee, according to the governor’s office.
State Rep. Tina Davis, a Democrat, praised the effort to secure the funding despite a divided legislature where Republicans control the Senate and Democrats control the House.
“Gov. Shapiro deserves a hand because he would not give up,” Davis said. “It’s a bipartisan budget compromise and I think we did great.”
Advertisements
State Rep. Jim Prokopiak, a Democrat, noted the needs of child care for working families and its long-term benefits. He recalled how his children have kept friendships formed in preschool through high school graduation.
“For many, both parents have to work. And when they make that decision, it’s not a decision that they make lightly, but they do it out of necessity,” Prokopiak said. “And because they have to do that, they need someone who’s going to take care of their children.”
Advertisements
Valerie Hamilton, the founder and executive director of Children of God Educational Services, described child care providers as “the workforce behind the workforce.”
The Mill Street facility serves approximately 55 children year-round and employs up to 20 staff during summer months, with 98 percent of children receiving some form of subsidy.
“Child care workers deserve competitive wages, that families need affordable, quality care, and that we, child care providers are the workforce behind the workforce,” Hamilton said.
Advertisements
The state was without a 2025-2026 budget for months, which created uncertainty for school districts and child care providers.
Shapiro acknowledged the delay but pointed to the importance of reaching a compromise in Pennsylvania’s divided government.
“Pennsylvania is one of only a few states, three across this country that have what’s known as a divided legislature,” Shapiro said. “We decided that we were going to stay at the table. We were going to work hard, we’re going to fight to deliver for the good people of Pennsylvania.”
Advertisements
Shapiro said the state is tracking how taxpayer-funded bonus programs are working, including for police and nursing.
The Shapiro administration plans to implement the Child Care Staff Recruitment and Retention Program and deliver bonuses to eligible workers later this fiscal year.
Advertisement
Meet Your Canna Coach: Personalized Guidance, Free for You!
Canna Remedies: Your Go-To Accessible and Convenient Dispensary
Shop Now: cannaremediesnj.com/shop
Advertisements
Report a correction via email | Editorial standards and policies
