MOUNTAIN TOP, PA – As a working father, Lieutenant Governor Austin Davis understands the importance of child care — and at today’s stop on his “Putting More Money Back in Your Pockets” tour, he visited a Luzerne County employer that is making child care more affordable and accessible for their workers.
“Child care is often one of the biggest expenses for working families — and I know that reality firsthand,” said Lt. Gov. Davis, who also serves as co-chair of the Early Learning Investment Commission (ELIC). “Governor Shapiro and I are working hard to bring down costs for Pennsylvanians, and that’s why we tripled the child care tax credit, delivering $136 million in relief for more than 200,000 families. We also know that the business community has to be part of the solution, which is why we created a tax credit for those employers that help subsidize child care for their workers. The Shapiro-Davis Administration is cutting taxes for working families and businesses — and putting more money back in Pennsylvanians’ pockets.”
The Shapiro-Davis Administration has invested in making child care more affordable and accessible for working families across the Commonwealth. Today’s event focused on the Employer Child Care Contribution Tax Credit Program and expanded Child Care and Dependent Care Enhancement Tax Credit -- two of the seven tax cuts the Administration has delivered over the past three years. The host for today's event, i2M, is a manufacturing company that partners with a local child care provider, Building Blocks, to offer reduced tuition rates for the company's workers.
“American manufacturing runs on people, and if we want to keep it strong, we have to make it easier for them to come to work,” said i2M CEO and ELIC member Alex Grover. “At i2M, we invested in child care because removing that barrier directly expands who can participate in the workforce. This is a bipartisan opportunity: when policy aligns incentives through tax credits, businesses deliver results. That’s how we strengthen the future of manufacturing in Pennsylvania and beyond.”
The Employer Child Care Contribution Tax Credit Program encourages Pennsylvania businesses to support their employees who have children in eligible child care or early learning programs. Employers can receive a tax credit equal to 30 percent of their employees’ eligible child care costs (with a maximum annual contribution of $500 per employee).
In addition to focusing on affordability, the Shapiro-Davis Administration is also working to expand access, in part by investing in the child care workforce. In last year’s bipartisan budget, the Shapiro-Davis Administration secured $25 million for recruitment and retention bonuses for child care workers across the Commonwealth. Starting soon, $645 bonuses will go out to nearly 39,000 child care workers. The 2026-27 budget proposes an additional $10 million for this new program.
“We’re encouraged by the Shapiro-Davis Administration’s investments in child care — especially the expansion of tax credits for families and the creation of incentives for employers,” said Greater Wyoming Valley Chamber of Commerce President and CEO Lindsay Griffin-Boylan. “These are meaningful steps that recognize child care as a critical part of our economic infrastructure. We also recognize the broader investments being made — from expanding the Child Care and Dependent Care Tax Credit for working families to supporting recruitment and retention bonuses for child care professionals. These are critical steps in stabilizing and strengthening the entire child care system.”
“I am so grateful to my fellow chamber leaders, statewide advocacy partners and the Shapiro-Davis Administration for the collective effort that resulted in a new and recurring Child Care Teacher Recruitment and Retention line item,” said Schuylkill Chamber of Commerce President and CEO Robert Carl Jr. “This $25 million investment in the current state budget is providing bonuses to tens of thousands of child care workers statewide. It’s putting hundreds of dollars into the pockets of the people who are doing one of our most valuable jobs – caring for and educating our children.”
The tour kicked off with a stop in Montgomery County earlier this week and will include stops in Fayette, Carbon and Adams counties, connecting residents with resources and highlighting the Shapiro-Davis Administration’s ongoing efforts to cut taxes, lower costs, and grow the economy.
Lt. Gov. Austin Davis speaks at today’s news conference.