Increase To Base Payment Rates For Child Care Providers Participating In Subsidized Care will Help Early Learners (February 22, 2023)

On February 22, 2023 the Shapiro Administration announced an upcoming increase to base rates paid to child care providers participating in Pennsylvania’s Child Care Works (CCW) program. Effective March 1, 2023, base rates will be increased to remain at the 60th percentile of the market rate for child care in a provider’s region based on newly-available data. 

The initiative increases access to child care in the same communities where low-income families served through CCW live. Increasing base rates also helps child care providers who participate in the program to enhance services, invest in staff development and compensation, and promote overall quality of their child care program. The increase comes in response to the 2022 Market Rate Survey results

CCW base rates are set according to a federally-recognized market rate survey conducted every three years. The results of the surveys assist states in determining an appropriate level of reimbursement offered to providers participating in subsidized child care programs, and to keep parity with what providers charge for services. The most recent survey was completed in 2022 and reflects the challenging operating environment that child care providers have navigated through the pandemic and accompanying economic challenges. Increases to operational costs experienced by providers caused the current base rates to fall below the 60th percentile. Funding made available under the American Rescue Plan Act will support reestablishing rates at the 60th percentile. 

CCW helps make child care affordable and more accessible for low-income, working families so parents are able to work knowing their children are being cared for and learning in reliable and safe environments. Investments in rates paid for this program help support quality of care and the child care workforce across Pennsylvania’s entire child care system – helping our youngest Pennsylvanians access early learning programs that will benefit them throughout their lives. 

View the press release by clicking here.