Pennsylvania child-care providers can now apply for a $30 million state program that will pay retention bonuses of at least $540 to eligible employees and, if money remains, support bonuses for qualified new hires.
The Department of Human Services opened the second annual application round on Oct. 15. Applications must reach a provider’s regional Early Learning Resource Center by Nov. 30. The program is limited to qualifying providers that participate in Child Care Works, the state’s subsidized child-care system; employees do not apply directly.
The 2026-27 state budget increased the Child Care Staff Recruitment and Retention Program by $5 million, from $25 million to $30 million. An independent budget review by Pennsylvania Partnerships for Children confirms the appropriation and says the minimum payment rose from $450 to at least $540. The Pennsylvania Child Care Association’s budget summary also identifies the $5 million increase and the higher payment floor.
Who qualifies and how payments work
Detailed program instructions published by Pennsylvania’s early-learning system say an eligible provider must hold a current regular certificate of compliance, be operating and serving families, maintain a current Child Care Works provider agreement, and satisfy prior grant-reporting and state-liability requirements both when it applies and when its Early Learning Resource Center pays the award.
Providers must request retention bonuses for all eligible staff at the covered location. Qualifying employees generally must directly supervise children for at least 15 hours per week, meaning janitorial, food-service, administrative, transportation and other staff without that direct-care role are excluded. The bonus is not based on performance, and providers cannot use the money to replace existing wages, benefits or other bonuses.
Applications must include an up-to-date Professional Development Registry staff report. Electronic submission to the regional resource center is preferred, although mailed applications postmarked by Nov. 30 are allowed. The state instructions warn that staff details must match the registry and that unresolved discrepancies by the deadline can lead to denial.
Payments are expected from late March into early April 2027. Providers must distribute the full retention award through payroll within 45 days of receiving state money; the bonuses are subject to applicable taxes. The final per-worker amount could exceed $540 if the number of approved applications leaves enough money, with the state planning to announce the amount in March.
Recruitment funds depend on availability
After retention obligations are covered, remaining money may be used for one-time recruitment bonuses of at least $540 for qualified workers hired after the provider submits its application. The number of recruitment slots varies by provider type and licensed capacity, and the program instructions say limited recruitment funding will be processed in the order completed applications arrive.
The first-year program drew applications from more than 4,300 providers and delivered bonuses to nearly 39,000 child-care workers, according to the state’s Oct. 15 announcement. The new round does not automatically solve staffing or capacity pressures, but it gives participating providers a defined, state-funded tool for retaining classroom workers while creating a separate pathway for some new hires.
