HARRISBURG, Pa. — Soaring childcare costs are causing headaches and forcing some parents to adjust their careers to take care of their kids.
Last year’s state budget expanded the childcare and dependent tax credits in Pennsylvania. Legislators are eyeing more support this time around.
The roar of the fountain outside the Pennsylvania State Capitol Building in Harrisburg tells lawmakers their time is running short.
The state’s budget is due at the end of next month and legislators are laying out their plan to tackle childcare costs in Pennsylvania, knowing it’s putting pressure on families.
"We have seven kids and so my wife and I really struggled with not only do you want your kids to be happy and in a good place where they feel safe, but you want them to have a stable environment," said Eric Nelson, a Republican state representative who serves Westmoreland County.
When Democratic State Representative Jennifer O’Mara welcomed her first child in 2022, her husband had to make a tough decision.
"We realized that for us it would make more sense for my husband to stop working and stay at home because otherwise, he would just be working to pay for childcare," O'Mara said.
Nelson introduced a bill in the state house to erase what he calls a "childcare subsidy cliff" that’s keeping some Pennsylvanians from receiving raises.
Earnings caps mean some parents lose state childcare support if they make more.
"The individual has to work less, because if they earn even $100 over, they lose their entire childcare subsidy," Nelson said.
Nelson said House Bill 1486 would address the issue. The bill has bipartisan support in Harrisburg and was referred to the House appropriations committee last week.
"If somebody earns above that threshold, they would still be able to maintain their childcare and contribute a copay to help cover those services," Nelson said. "They’d be able to work and earn a higher level for up to a year."
Governor Shapiro proposed a $96,000 investment in the Child Care Works program in this year’s budget, increasing reimbursement rates for childcare providers.
"That is going to add more funding. It’s a part of the governor’s budget," O'Mara said. "It will allow more families to qualify."
A separate bill introduced by Democrats in the state house would encourage employers to help their staff cover childcare, offering tax breaks to companies that make it a priority.
House Bill 1958 passed in the chamber last week.
"We’re hoping that by allowing employers to provide the support and giving them an incentive to do so, we’re going to get more people back to work too," O'Mara said. "This isn’t going to be a one-stop solution. This is going to take multiple pieces of legislation and really bringing a coalition together."
Pennsylvania's budget is due on June 30.