Governor Josh Shapiro visited The Perception Training Center in Schuylkill County on Tuesday to emphasize his administration’s commitment to making childcare more affordable and accessible for Pennsylvania families.
During his visit, the Governor highlighted key aspects of his proposed 2025-26 budget, which includes a $55 million investment aimed at improving the childcare workforce through recruitment and retention grants.
Governor Shapiro’s proposal seeks to provide an annual $1,000 grant per employee working in licensed childcare centers participating in the Child Care Works (CCW) Program. The initiative builds upon efforts from his first two years in office, during which he expanded the Child and Dependent Care Enhancement Tax Credit—delivering $136 million in savings to more than 218,000 families—and introduced the Employer Child Care Contribution Tax Credit to support businesses in covering childcare costs for employees.
Addressing Workforce Shortages in Child Care
During his remarks, Governor Shapiro highlighted the urgent need to strengthen the childcare workforce. “Right now, we have 3,000 unfilled jobs in childcare centers across Pennsylvania. When families can’t find safe, affordable childcare, it forces them out of the workforce and hurts our economy,” he stated. “That’s why my budget includes $55 million to give childcare workers in Pennsylvania at least $1,000 in recruitment or retention bonuses—to invest in our workforce and solve this problem.”
This initiative is part of a broader effort by the Shapiro administration to address workforce shortages in industries such as education and healthcare.
Economic Impact of Child Care Access
The shortage of childcare providers has had significant economic repercussions. According to the Pennsylvania Chamber, the state’s economy loses nearly $3.5 billion annually due to a lack of childcare options, with over a third of Pennsylvania parents reporting that childcare challenges have impacted their employment. Across the Commonwealth, 3,000 unfilled childcare positions leave 25,000 children without access to care, leading to long waitlists for families seeking services.
Michelle Dallago, owner and executive director of The Perception Training Early Learning, Inc., spoke about the struggles childcare providers face in maintaining a stable workforce. “We started this past year with the loss of two lead teachers to district positions and no applicants to replace them—the first time I truly questioned whether Perception could survive,” she said. “Childcare is the workforce behind the workforce. If our teachers aren’t here, the parents who rely on us can’t show up for their jobs either.”
Bob Carl, President and CEO of the Schuylkill Chamber of Commerce, echoed these concerns, emphasizing the economic impact. “The shortage of childcare providers has led to a 20% reduction since 2019. In a recent survey, 63% of parents reported being placed on waiting lists, some as long as three years,” Carl noted. “This crisis is not just an inconvenience—it’s an economic issue. Without childcare, parents can’t work, and our economy suffers.”
Proposed Budget Allocations
Governor Shapiro’s 2025-26 budget proposal includes several investments to support child care providers and working families:
- $55 million for childcare workforce recruitment and retention grants for licensed providers participating in the Child Care Works (CCW) Program.
- $15 million in additional funding for the Pre-K Counts program to help providers increase wages and stabilize the early educator workforce.
- $10 million to raise Early Intervention (EI) provider rates, ensuring that Pennsylvania children receive necessary support services.
Bipartisan Support for Child Care Investments
Governor Shapiro’s proposal has garnered support from both sides of the aisle. Senator David Argall praised the initiative, stating, “This is a great news story—business, labor, employers, employees, and Republicans and Democrats all supporting the Governor’s investment in childcare providers. It’s a win for everyone—especially the kids, who benefit so much from programs like this.”
Representative Tim Twardzik also voiced support, emphasizing the necessity of strengthening the childcare workforce. “Affordable, high-quality childcare is essential for children’s well-being, the stability of working families, and our economy. Parents need reliable childcare to advance their careers, and we need people to care for our youngest Pennsylvanians,” he said. “Supporting the childcare workforce helps providers attract great employees, creating more spots for families and strengthening communities.”
Submitted Photo and Video /PA Cast