Child Care as Workforce Strategy: Pennsylvania's Whole-of-Government Approach
Pennsylvania is advancing a coordinated, whole-of-government approach to strengthen child care access and support working families across the Commonwealth.
The Pennsylvania Early Learning Investment Commission (ELIC) is encouraged by this alignment across state leadership and agencies. It reflects a growing, cross-sector understanding that child care is not a single-agency issue. It is a shared economic priority with direct implications for employers, workers, and communities.
ELIC's Role: Convening Cross-Sector Action
Over the past year, ELIC, co-chaired by Lieutenant Governor Austin Davis and PNC business leader Jim Hoehn, helped convene cross-sector stakeholders through the Igniting Innovation project. These conversations examined innovative child care solutions and how they intersect with broader state government and workforce priorities.
A clear takeaway emerged: existing connections across agencies were strong, but greater coordination would drive even greater impact. That coordination is now taking shape.
Pennsylvania's Whole-of-Government Approach
The Department of Community and Economic Development (DCED) is uniquely positioned to incentivize private developers to prioritize child care. Moving forward, DCED will begin scoring projects that include child care more favorably in grant and program decisions—supporting economic development while expanding access to high-quality child care in underserved regions
The Department of General Services (DGS) will identify state-owned properties to further expand child care services across the Commonwealth. Through its Space Optimization & Utilization Program, DGS is analyzing property usage and exploring how existing state spaces can be better leveraged, with child care now identified as a priority use.
Recognizing both workforce needs and demographic trends, the Department of Aging is collaborating with the Department of Human Services to explore the creation of defined pathways for older Pennsylvanians to enter the child care workforce.
Finally, the Department of Labor & Industry (L&I) is prioritizing the reopening of its onsite child care center, building on a model that existed prior to the COVID-19 pandemic.
This cross-agency coordination reinforces what employers have long identified: child care is directly tied to workforce participation and economic competitiveness.
From State Leadership
Lieutenant Governor Austin Davis on a whole-of-government approach to child care: "Over the last year, my office has worked closely with ELIC, the Pennsylvania Office of Child Development and Early Learning (OCDEL), and all of our state agencies to create a whole-of-government approach to drive down costs for families and improve wages for child care workers. This is our administration's way of demonstrating our values and putting families first, here, in Pennsylvania."
Pennsylvania Department of Human Services Secretary Dr. Valerie Arkoosh on strengthening the child care workforce through the new recruitment and retention program: "We had a very robust response to these recruitment and retention grants. 4,300 child care providers applied…"
Pennsylvania has made strategic investments to stabilize and grow the child care workforce: ● $25 million recruitment and retention fund established with support from the General Assembly. More than 4,300 providers applied, demonstrating strong sector demand and readiness to hire additional staff ● Increased child care subsidy base rates to the 75th percentile. Provide annual Continuous Quality Improvement (CQI) Awards to support and recognize quality early learning and school-age programs. These investments are producing results, but demand continues to outpace available funding. Additional investment would directly support hiring, retention, and expanded capacity across the sector.
Employer Voice: Child Care as a Business Decision
As Pennsylvania advances its coordinated approach, employers are demonstrating what this looks like in practice.
Through the Pennsylvania Employer Child Care Contribution Tax Credit, businesses can invest directly in child care solutions for their workforce. The credit equals 30% of employer contributions toward employees' child care costs, offsetting expenses while expanding access to care.
ELIC Commissioner and i2M CEO Alex Grover recently brought this perspective to a national audience, testifying before Congress on the role of child care as a workforce strategy. Drawing on her experience in manufacturing, she offered a straightforward assessment: "From my experience running a manufacturing company, I've seen firsthand that access to child care really impacts whether we can recruit and retain workers…"
Her core message, "Child care is a business decision," reflects what employers across Pennsylvania already know: child care is essential infrastructure for a competitive workforce and economy.
Tools like Investments in Caring PA help translate this momentum into action, equipping employers with practical strategies to address child care and strengthen their workforce. Learn more at investmentsincaringpa.com.
ELIC will continue to elevate employer voices, support cross-sector collaboration, and advance solutions that meet the needs of working families and businesses across Pennsylvania.
Get Involved...
Employer Case Studies: Is your company investing in child care as a workforce strategy? ELIC is actively seeking employer stories that illustrate the real-world impact of child care on recruitment, retention, and productivity. Whether you've utilized the Employer Child Care Contribution Tax Credit, partnered with a local provider, or built an on-site child care solution, your experience can help make the case for others.
To be considered for an ELIC case study or employer spotlight, contact Sara Lauver at sara@paearlylearning.com.
Sponsorship Opportunities: ELIC's work, from cross-sector convenings to employer engagement and public awareness, depends on the partnership of businesses and organizations that share our commitment to child care as an economic priority. Sponsorship opportunities are available for organizations seeking to align their brand with a statewide, nonpartisan effort to strengthen Pennsylvania's workforce.
