As part of a continued effort to make childcare more accessible and affordable, Gov. Josh Shapiro and Lt. Gov. Austin Davis recently hosted a roundtable at the YMCA Child Development Center at Duquesne University to highlight the governor’s 2025-26 proposed budget and its focus on expanding the childcare workforce.
Shapiro’s proposed budget invests $55 million in childcare workforce recruitment and retention grants, providing approximately $1,000 more annually per employee working with licensed childcare providers in the Child Care Works Program. With this investment, Shapiro hopes to increase childcare availability for parents and families statewide.
“My budget prioritizes workforce development to tackle shortages in critical sectors like child care,” said Shapiro. “With 3,000 unfilled child care jobs across Pennsylvania, too many families are struggling to find safe, affordable care — forcing parents out of the workforce and making it harder to get ahead.”
Shapiro’s proposed budget investments would include $55 million in support for childcare workforce recruitment and retention grants designated to licensed childcare providers with Child Care Works (CCW) Program agreements. There is an additional $15 million in funding for the Pre-K Counts program, which helps providers raise wages and stabilize the early educator workforce. And, finally, $10 million to increase Early Intervention (EI) provider rates, ensuring all Pennsylvania children have access to needed support and resources.
Since taking office, Shapiro has expanded the Child and Dependent Care Enhancement Tax Credit, delivering $136 million in savings to over 218,000 families, and created the Employer Child Care Contribution Tax Credit to help businesses contribute to employees’ child care costs. Shapiro says these initiatives have been key in making child care more affordable for families across the state.
Pennsylvania’s childcare system serves over 300,000 children annually; however, providers continue to struggle to hire and retain staff. This can lead to long waitlists and reduced capacity for families needing childcare. Low wages are consistently reported as a primary difficulty in filling childcare center positions, and many centers are forced to close classrooms or limit enrollment as a result. Without the ability to offer competitive wages, hiring and retaining qualified early childcare educators remains extremely difficult.
“The childcare workforce shortage isn’t just a challenge for families — it’s a major economic issue, costing billions in lost earnings, productivity, and revenue,” said Lt. Gov. Davis. “Our proposed budget invests in solutions, including $1,000 bonuses to recruit and retain childcare workers across the Commonwealth. These dedicated professionals care for our most valuable resource — our children. Many are working mothers themselves, striving to support their own families. They work hard, and they deserve this investment.”
Without access to affordable, quality childcare, many parents have left the workforce altogether, being denied the opportunity to work and build careers, Davis added. More than one in three Pennsylvania parents report an impact on their employment due to childcare problems. Meanwhile, 3,000 unfilled childcare positions leave 25,000 children without access to care across Pennsylvania.
“The Lieutenant Governor and I have seen firsthand how important quality child care is — our daughter, Harper, is lucky to attend a wonderful facility that gives her a safe, supportive place to learn and grow,” said Second Lady Holmes Davis. “Every parent in Pennsylvania should have that same peace of mind, and every child should have the opportunity to thrive in a nurturing environment.”
