Struggles worsened for Pennsylvania’s child care providers, advocates say, as mounting debt triggered by the ongoing state budget stalemate exacerbates persistent problems with workforce shortages and affordability of care.
Key findings in the 2025 State of Early Childhood Education report, a collaborative effort of the Early Learning PA coalition, show that approximately 95 providers in Pre-K Counts and the Head Start Supplemental Assistance Program across 32 counties racked up nearly $20 million in loans, as state payments are delayed due to the budget impasse. That’s a fraction of the number of providers operating in Pennsylvania.
Some took lines of credit with an average interest rate of 7.5% to make payroll and cover necessary expenses. Others took personal loans with much higher rates.