Surveys Find Devastating Impacts of State Budget Impasse on Pennsylvania’s Early Learning Providers
Documented to date: $20 Million in Loans; 4,000 Children Shut Out
Harrisburg, PA (October 17, 2025) – Recent surveys conducted by the Pre-K for PA and Start Strong PA campaigns as well as the Pennsylvania Office of Childhood Development and Early Learning (OCDEL) of both Pre-K Counts and Head Start Supplemental Assistance Program (HSSAP) providers found widespread, devastating impacts resulting from the state budget impasse.
In response to a short survey concluded on October 10th, Pre-K for PA / Start Strong PA documented that 95 Pre-K Counts and HSSAP providers across 32 counties have collectively taken on nearly $20 million in loans in order to continue to serve working families while state funding has been frozen. Many of these loans have been business lines of credit taken out at an average interest rate of 7.5 percent, while others have been personal loans with higher interest rates. Many providers have indicated that loans will only sustain operations for a short period of time and the accumulated interest liability may have severe consequences for future operations.
“This survey represents just a small portion of early learning providers, but it is clear that the continued state budget impasse is further destabilizing a sector that was already in the midst of a crisis with financial and staffing challenges,” said Kara McFalls, Executive Director of the Pennsylvania Head Start Association. “Early learning providers can not withstand additional insecurity.”
While dozens of providers have taken on debt to keep their classrooms open, many others have been forced to take even more drastic measures, including laying off staff and closing classrooms completely.
Through targeted outreach across 21 grantees operating Pre-K Counts and/or HSSAP programs across 16 PA Counties, OCDEL documented closures, planned closures, or delayed openings of classrooms that affect more than 4,000 slots across the Commonwealth. This represents more than 4,000 children being denied the opportunity of a foundational early learning experience due to the inability to pass a timely PA state budget. It also represents working families across the state that are struggling to arrange and pay for alternate care for their children during working hours. Both Pre-K Counts and HSSAP are free programs for qualifying families.
“We know that gaps in care already cost this Commonwealth over $6.5 Billion in lost economic opportunity each year. This impasse and its effects on working families and early learning providers is adding to this figure,” said Robert S. Carl, Jr., President and CEO of the Schuylkill Chamber of Commerce. “Additionally, shutting our youngest learners out of classrooms will certainly have negative impacts on school readiness for this cohort of three- and four-year-olds in years to come. It’s time to compromise and pass a budget that invests in the early learning workforce!”
Previous surveys have documented thousands of unfilled early learning teaching positions due to low pay. Providers fear that closures and layoffs resulting from the current state budget impasse will significantly exacerbate these staffing challenges and further destabilize programs for the foreseeable future.
Recent polling from March 2025 shows that Pennsylvania voters overwhelmingly support increasing state funding for early learning programs:
- 83% support allocating state funding to increase childcare worker wages.
- 73% support increasing state funding to serve more eligible children in pre-K programs.
- 73% support increasing state funding to help more low-income families afford high-quality childcare.
- 72% favor allocating state funding to increase compensation for pre-K teachers.
Pre-K for PA and Start Strong PA urge Pennsylvania policymakers to take this voter sentiment to heart and pass a final budget which includes:
- A $55 million investment in a new and recurring Child Care Recruitment and Retention line item to grant licensed child care providers participating in the child care subsidy program with $1,000 per educator;
- $17 million in additional funding for Pre-K Counts;
- $9.5 million for the Head Start Supplemental Assistance Program and
- $16.2 million increase for infant/toddler Early Intervention and $38.1 million increase for preschool Early Intervention.
“These urgently needed investments will stabilize and reverse the exodus of early educators and help keep early learning programs open so parents can go to work,” said Jen DeBell, Executive Director of the Pennsylvania Association for the Education of Young Children. “It’s imperative that lawmakers return to Harrisburg and negotiate and pass a final budget that includes these pro-working family investments.”
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