Child care providers can now apply for $450 bonuses for staff through the new Child Care Staff Recruitment and Retention Program created in Governor Shapiro's 2025-26 Budget.
Harrisburg, PA – Today, the Pennsylvania Department of Human Services (DHS) opened applications for the new Child Care Staff Recruitment and Retention Program. This funding secured in Governor Josh Shapiro’s 2025-26 budget will distribute $450 per employee to licensed Child Care Works (CCW) providers to address workforce shortages and expand child care availability for families around the Commonwealth.
The 2025-26 budget allocated $25 million to support retention bonuses for approximately 55,000 child care workers statewide as well as help providers recruit new staff to fill vacancies and open more classrooms to serve more children. To receive the funds, providers must complete applications online through the Early Learning Resource Center (ELRC) before the January 29, 2026, deadline.
“Every child in Pennsylvania deserves access to excellent early learning opportunities, and every child care provider deserves fair compensation for the vital work they do every day,” said Secretary Dr. Arkoosh. “High quality child care helps our children grow and thrive while allowing parents to work and participate in our economy. 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 this essential field and strengthen our child care industry and our overall economy. I encourage all eligible providers to apply now and receive this additional funding to support their staff and help recruit additional workers.”
Eligible providers must submit their application for retention and recruitment bonuses to the ELRC before the January 29, 2026, deadline. The ELRC will then distribute retention payments to providers in the amount of $450 per qualified employee between February 9, 2026, and May 22, 2026. Interested child care providers and their staff must meet DHS’ program eligibility requirements in order 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. In their application, providers will have the option to request recruitment funds for staff they intend to hire prior to June 30, 2026. If funding is available, providers will then receive recruitment payments based on provider type and licensed capacity.
Pennsylvania’s early learning and child care system serves more than 300,000 children annually across the Commonwealth, including approximately 94,000 children who access care through the Child Care Works program, Pennsylvania’s state and federally-funded subsidized child care program that helps low-income families access high quality child care that allows parents with young children to work.
However, providers are struggling to hire and retain staff. Pennsylvania has an estimated 3,000 unfilled jobs in child care; if filled, 25,000 more children in Pennsylvania could have access to child care, and their parents would 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 retain and attract qualified early childhood educators.
This new investment builds on the work the Shapiro Administration has done 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.
The 2025-26 budget also invests an additional $7.5 million for Pre-K Counts to help providers raise wages and stabilize the early educator workforce, along with a $13.2 million increase for Early Intervention’s Infants and Toddlers program in DHS’ budget, with $10 million of these funds directed to increase provider rates to address key challenges in the sector including the rising need of services for families. This investment of state dollars can be matched with federal dollars bringing the total investment in Early Intervention rates to $22.6 million.
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.
Providers can apply now and learn more about the Child Care Staff Recruitment and Retention Program.
Learn more about Child Care Works and find more information on certified child care providers at www.findchildcare.pa.gov.
Read more about Governor Shapiro’s 2025‑26 budget.