Erie, PA – Today, Pennsylvania Department of Human Services (DHS) Secretary Dr. Val Arkoosh visited Early Connections- Harbor Homes, a child care facility partnered with the Housing Authority of the City of Erie, to discuss Governor Josh Shapiro’s 2025-26 Budget Proposal, which builds on his Administration’s efforts to make child care more affordable and expand and strengthen the child care workforce.
“For our youngest Pennsylvanians, an early childhood education experience can shape their educational, social, and emotional development during their youngest years, providing a foundation that will reap benefits throughout their lives,” said Secretary Arkoosh. “A thriving child care industry both supports this growth and allows parents to work and participate in our economy. We must continue to invest in high-quality care that is a cornerstone of our economy 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.”
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.
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; 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 recruitment or retention 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.
For 130 years, Early Connections (formerly the YWCA) has served Erie County, providing outreach, education, and programming to young children and families. Through diverse funding sources, the organization partners with agencies and school districts to deliver high-quality childcare services to approximately 200 children and families annually within five childcare centers throughout the community. Early Connections' scope extends beyond early care and education, encompassing strategic partnerships with Pennsylvania agencies and community leaders to foster academic and community success for children and families. These collaborations have resulted in the support of educational initiatives and nonpartisan advocacy at both the local and statewide levels.
Early Connections has a long-standing partnership with the Housing Authority of the City of Erie (HACE), which has provided safe, decent, and affordable housing for lower-income families since 1938. In 2008, Harbor Homes became Early Connections’ second location within the HACE neighborhood. This allows children from birth through preschool age to benefit from high-quality early care and education programs within their community, providing them with the foundation for success in school and life.
“Early Connections proudly welcomes Pennsylvania’s Human Services Secretary Dr. Valerie Arkoosh to Harbor Homes. Our quality childcare center is the result of one of our cherished partnerships with the Housing Authority of the City of Erie,” said Michelle Harkins, Early Connections Executive Director. “Erie County’s childcare providers have experienced extreme shortages in staffing, resulting in empty classrooms and long wait lists. We express our gratitude to Secretary Arkoosh and Governor Shapiro’s $55 million proposal aimed at retention and recruitment efforts, as well as the proposed increased funding for childcare support initiatives. Together, we are dedicated to addressing the child care staffing crisis.”
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.
