Shapiro Administration Awards Child Care Workers with Recruitment and Retention Bonuses, Highlights Continued Work to Make Child Care More Affordable & Accessible Through[...]

Shapiro Administration celebrates bonuses for child care staff in Philadelphia.

Governor Josh Shapiro doubling down on the success of the child care recruitment and retention bonuses and by increasing payments for child care workers in the proposed 2026-27 Budget.

Philadelphia, PA - Today, Pennsylvania Department of Human Services (DHS) Secretary Dr. Val Arkoosh recognized West Philadelphia's Parent Infant Center as recipient of the largest individual Child Care Recruitment and Retention Program bonus award created in the 2025-26 Budget. The visit highlights how Governor Josh Shapiro's 2026-27 Budget Proposal builds on his Administration's efforts to make child care more affordable and accessible by investing an additional $10 million in the Child Care Recruitment and Retention Program to provide more support to the child care workforce.

DHS visited to celebrate with bonus recipients and discuss how additional investments would stabilize the child care workforce and support employees, bringing the total investment to $35 million. The additional funds would increase bonuses for the approximately 55,000 child care workers at licensed child care centers that participate in Pennsylvania's Child Care Works (CCW) program from a minimum of $450 estimated for first round payments to at least $630. The Parent Infant Center employs more than 65 child care workers who care for roughly 350 children. In total, these dedicated employees will receive over $43,000 from the first round of Child Care Recruitment and Retention Program grants.

"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 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 Child Care Recruitment and Retention Program invests in this critical workforce and supports access to early learning for our children. The Governor's proposed budget aims to build off this success and further support our hardworking child care workforce."

In the 2025-26 budget, Governor Shapiro secured $25 million in new funds to support child care workers at CCW child care providers with at least $450 retention bonuses. Applications closed for the first round of grants in January, with more than 4,300 child care providers applying. Starting soon, $645 bonuses will go out to nearly 39,000 child care workers. Once all retention bonuses are paid, remaining funds will be used to help support child care providers in recruiting staff with one-time incentive payments.

Child care and early learning are critical to child development and set young Pennsylvanians up for success - and a strong child care workforce ensures parents can continue to pursue their careers even after having children. Child care workers are the workforce behind the workforce. However, access to quality child care remains an issue for many Pennsylvania families, and staffing shortages and low wages at child care centers continue to plague an already vulnerable system.

In addition to staff bonus increases to further support Pennsylvania's child care and early learning programs, the 2026-27 Budget Proposal includes;

• An additional $7.5 million for the Pre-K Counts program to help providers raise wages and stabilize the early educator workforce; and

• $2 million for the Head Start State Supplemental program to help providers raise wages and stabilize the early educator workforce.

Building on the Shapiro Administration's Investments in Pennsylvania's Families and Strengthening the Child Care Workforce

These investments build on the work the Shapiro Administration has done during the past three years. Since 2023, DHS has invested 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.

Governor Shapiro signed into law a historic expansion of the Child and Dependent Care Enhancement Tax Credit that increases Pennsylvania's match from 30 to 100 percent of the federal credit, increasing the maximum benefit from $630 to $2,100 per family. In 2024, this increase delivered $136.5 million to 218,953 working families. Last year, Governor Shapiro worked with the General Assembly to create the Employer Child Care Contribution Tax Credit, which allows employers who contribute to employees' child care costs to claim a tax credit of up to 30 percent of eligible contributions, capped at $500 per employee.

Parent Infant Center (PIC) is a nonprofit early childhood education program serving over 300 children from six weeks through fourth grade in West Philadelphia. For more than four decades, PIC has provided high-quality, inclusive, and relationship-based care that supports children's development and learning. Rooted in a commitment to community, dignity, and equity, PIC fosters environments where children feel safe, known, and valued, and where educators are supported as professionals. Through its early learning and school-age programs, PIC helps build a strong foundation for lifelong learning and well-being.

"We are deeply grateful for this investment in early childhood education and, most importantly, in the teachers who make this work possible every day. As a mother, an educator, and an Executive Director, I see firsthand that when we invest in our teachers, we strengthen the quality of care and learning that children receive," said PIC Executive Director Jamila Carter. "That impact extends beyond the classroom, supporting families, stabilizing the workforce, and helping communities thrive. This is an important step toward the sustained, meaningful investment needed to ensure that high-quality early childhood education is accessible and sustainable for all."

Learn more about Child Care Works and find more information on certified child care providers at https://www.findchildcare.pa.gov.

Read more about Governor Shapiro's 2026-27 Budget Proposal.