Federal Child Care Relief & the American Rescue Plan
The child care sector was in crisis before the COVID-19 pandemic, with eligible families unable to access child care subsidy, poverty-level wages for early childhood educators, and razor thin margins for providers. The child care sector has been pushed to the brink of collapse by the pandemic.
Federal relief over the last year has helped many providers, however between March 2020 and April 2021, 686 Pennsylvania providers have closed permanently and 363 temporarily. Child care providers are still incurring additional pandemic related costs while operating significantly under capacity.
Federal Relief for Child Care
To date federal relief for child care has included:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act
Pennsylvania received $106 million in Child Care and Development Block Grant (CCDBG) funds. In addition, the Administration and General Assembly appropriated $116 million in discretionary CARES Act funds for Pennsylvania child care programs. The Administration released the $222 million in CARES Act funds to programs from June to October 2020.
Coronavirus Response and Relief Supplemental Appropriations Act of 2021
Pennsylvania was awarded $303 million through this legislation and the Wolf Administration recently announced the funds will be allocated (in rounded amounts) as follows in an effort to further stabilize the sector:
$212 million for child care providers to be distributed in May.
$3 million to provide a $600 Pandemic Relief Award to the 5,000 teachers and staff currently on a waiting list.
$87 million to continue to support the base rate increase that began March 1.
$1 million to provide an administrative rate increase for Early Learning Resource Centers.
American Rescue Plan
The law includes $24 billion for child care stabilization, $15 billion for the Child Care Development Block Grant, and $3.55B in the Child Care Entitlement to States.
Pennsylvania is estimated to be awarded $1.2 billion.
ARP Fast Track Recommendations (PDF)
ARP Forum Themes and Recommendations (PDF)
ARP Forum Recommendations including individual forum summaries (PDF)
Provider and Family Field Forums
From April to May 2021, Start Strong PA hosted 12 virtual forums to gather feedback from child care providers and the families they serve in order to make recommendations to the Wolf Administration for how the American Rescue Plan funds should be spent.
Start Strong PA campaign partners recognize the need for these funds to not only stabilize child care providers but allow Pennsylvania to think boldly about how to create a stronger more equitable child care system.