Pennsylvania Child Care Employee Bonuses: Applications Now Open for 2026–27 Funding

Pennsylvania child care providers have a new opportunity to receive funding to support their employees.

Beginning October 13, 2026, eligible child care providers can apply for recruitment and retention bonuses through Pennsylvania's Child Care Staff Recruitment and Retention Program.

The state has increased funding to $30 million for the 2026–27 program year, providing bonuses of at least $540 per eligible employee.

For child care organizations managing staffing shortages, rising labor costs, and employee retention challenges, this funding offers additional support. But providers need to act before the application deadline.

Here's what Pennsylvania employers should know.

What's Changing for 2026–27?

The Pennsylvania Department of Human Services (DHS) announced an additional $5 million in funding for the program, increasing the total investment from $25 million to $30 million.

The updated program includes:

• Retention bonuses of at least $540 per eligible employee.
• Funding for qualifying licensed Child Care Works (CCW) providers.
• Additional recruitment funding that may be available after retention bonuses are distributed.
• An application window running from October 13 through November 30, 2026.

The program is now in its second year and is intended to help providers retain experienced employees while attracting new workers to the child care industry.

Who Is Eligible for the Bonuses?

The program is designed for licensed Pennsylvania child care providers participating in Child Care Works.

Eligible providers can apply for funding on behalf of qualifying employees. Both providers and employees must meet the state's program eligibility requirements.

Not every child care facility or employee will automatically qualify.

Employers should confirm eligibility with their local Early Learning Resource Center (ELRC) before submitting an application.

How Much Can Employees Receive?

Under the 2026–27 program, eligible providers can receive retention funding of at least $540 per qualified employee.

This represents an increase from the previous program year's initial $450 bonus amount.

After retention bonuses have been paid, remaining program funds will be made available to providers for recruitment payments to qualified employees hired after the application period closes.

The availability and amount of recruitment funding will depend on the program's requirements and remaining funds.

How Do Pennsylvania Child Care Providers Apply?

Eligible providers must submit their applications through their local Early Learning Resource Center.

IMPORTANT PROGRAM DATES

View Pennsylvania DHS Announcement

Providers should review the program instructions, confirm employee eligibility, and gather any required documentation before applying.

What Should Employers Know About Payroll?

While the funding is intended to support employees, child care providers should also consider how bonus payments will be administered.

Depending on the program's payment requirements, employers may need to account for:

• Payroll processing: Determine how employee bonuses should be processed through payroll.
• Tax withholding: Review applicable federal, state, and local withholding requirements for employee bonus payments.
• Employee records: Maintain accurate information about qualifying employees and payments.
• Documentation: Retain records needed to demonstrate that program funds were distributed appropriately.

Employers should confirm the current program's payment and reporting instructions before processing bonuses.

For additional guidance on supplemental wage withholding, employers can reference IRS Publication 15, Employer's Tax Guide.

Why This Matters for Pennsylvania's Child Care Workforce

Staffing continues to be a challenge for many child care organizations.

When providers struggle to recruit and retain employees, the effects extend beyond their own operations. Limited staffing can reduce available child care capacity, making it harder for working parents to maintain consistent schedules and employment.

Pennsylvania's recruitment and retention funding is intended to help address these challenges by providing additional financial support to the employees who keep child care programs operating.

For eligible employers, taking advantage of available funding can be one piece of a broader strategy to strengthen workforce stability.

Supporting Your Workforce Starts with the Right Tools

Managing a child care workforce involves more than hiring and retention. Employers also need accurate payroll, reliable time tracking, organized employee records, and efficient HR processes.

At CTR Payroll | HR, we help organizations simplify payroll and HR administration through connected technology and dedicated support.

Whether you're managing multiple locations, tracking employee hours, or processing additional compensation, having the right systems in place can make a difference.

Need help simplifying payroll and HR for your organization? Connect with CTR Payroll | HR.

This article is intended for general informational purposes. Employers should consult Pennsylvania DHS and their Early Learning Resource Center for current program eligibility, application, and payment requirements.