Pittsburgh, PA – Today, Pennsylvania Department of Human Services (DHS) Secretary Dr. Val Arkoosh visited the Children’s Home of Pittsburgh & Lemieux Family Center to highlight how Governor Josh Shapiro’s 2025-26 Budget Proposal, builds on his Administration’s efforts to make child care more affordable and expand and strengthen the child care workforce.
“An early childhood education experience can shape the educational, social, and emotional development for our youngest Pennsylvanians, providing a foundation that will reap benefits throughout their lives. A thriving child care industry both supports this growth and allows parents to work and participate in our economy,” said Secretary Arkoosh. “We must continue to invest in high-quality care and support our dedicated child care providers and educators who show up every day to help our children grow and thrive through childhood and beyond.”
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 estimated 3,000 unfilled jobs in child care; if we filled those jobs, 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 attract and retain qualified early child care educators.
That’s why Governor Shapiro is proposing investments to recruit and retain child care workers and increase child care services for Pennsylvania families. These proposed investments include $55 million to give eligible child care providers in Pennsylvania’s Child Care Works Program $1,000 retention and recruitment bonuses.
Additionally, $10 million will be directed 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.
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.
For families of medically complex children, finding care that meets both medical and developmental needs can be overwhelming. That’s where The Children’s Home of Pittsburgh steps in and makes a difference. The organization’s Child’s Way program – established in 1998 - is the first and only pediatric medical day care in Pennsylvania dually licensed by both the Department of Health and the Department of Human Services. It’s also the only alternative to in-home nursing care for medically fragile children in the Commonwealth. As a Keystone STAR 4 accredited facility, Child’s Way offers a comprehensive, holistic model of care. Children receive nursing care, early childhood education, and all physician-prescribed and early intervention therapies in one setting — a true one-stop resource for families.
“At The Children’s Home, we meet families where they are across all of our programs — emotionally, medically, and in the realities of their daily lives,” said Stacy Schesler, CEO. “Our Child’s Way program provides not only expert and compassionate care for medically fragile children, but also peace of mind for parents. They can return to work or school knowing their child is safe, supported, learning, and thriving in a nurturing environment. We commend Governor Shapiro’s commitment to strengthening the child care workforce and expanding access to care for families.”
A Track Record of Investing in Pennsylvania’s Families and Strengthening the Child Care Workforce
Proposed investments in the 2025-26 Budget build 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.
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 DHS' Office of Child Development and Early Learning to support child care 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.
