To be eligible for a 2025-26 Keystone STARS CQI Award, a provider must meet all the following requirements as of August 1, 2025, and at the time of the Award payment issued by the ELRC:

• The provider must possess a current, regular Pennsylvania Department of Human Services (DHS) Certificate of Compliance. Providers with provisional certificates, those in a “refuse to renew” status, or those whose certificates have been revoked are ineligible.
• The provider is designated as a Keystone STAR 2, 3, or 4 program and is not in a Keystone STARS Suspension status.

*See Policy Eligibility Exception for STAR 1 Programs and Special Consideration for STAR 2 and STAR 3 Programs.

• If applicable, the provider must:

1. 1. Have completed the reporting requirements for the 2024-25 CQI Awards; and/or
   2. Not have an open referral or ongoing repayment plan with the Office of Attorney General (OAG).

• The provider does not owe liens/liabilities to the Pennsylvania Department of Revenue.

Providers who meet the above eligibility criteria as of August 1, 2025, but fail to meet the criteria at time of payment by the ELRC will be considered ineligible.

OCDEL is providing a policy exception for STAR 1 programs who successfully move up to a STAR 2, 3, or 4. To be eligible for this policy exception, a STAR 1 program must:

• Have an open move up designation case in the PD Registry Designation System as of August 1, 2025, and
• Be successful in moving up to a STAR 2, 3, or 4 as evidenced by a completed designation case in the PD Registry System and a confirmed designation in PELICAN Keys to Quality on or before October 31, 2025, and
• Meet all other eligibility criteria at time of payment by the ELRC.

OCDEL is also providing a special consideration for STAR 2 and STAR 3 programs that meet all eligibility criteria on August 1, 2025, and move to a higher STAR designation.

To receive a higher CQI Award amount, a STAR 2 and 3 program must:

• Have an open move up designation case in the PD Registry Designation System as of August 1, 2025; and
• Be successful in moving up to a higher STAR level as evidenced by a completed designation case in the PD Registry System and a confirmed designation in PELICAN Keys to Quality on or before October 31, 2025; and
• Meet all other eligibility criteria at time of payment by the ELRC.

STAR 2 and STAR 3 programs who have an open move up designation case in the PD Registry system as of August 1, 2025, and intend to complete their move up designation on or before October 31, 2025, should contact their Quality Coach as soon as possible. The ELRC can delay sending their Eligibility & Acceptance Letter until their designation move up is completed.

The table below displays the Keystone STARS CQI Award amount based on provider type and Keystone STAR designation.

Eligible programs can use the Keystone STARS CQI Award funds for eligible expenses in the following categories:

• Staff Qualifications and Professional Development
• Early Childhood Education Program
• Partnerships with Families and Communities
• Leadership and Management
• Accreditation Costs (toward an OCDEL- approved Alternate Pathway)

These categories align with the Keystone STARS Performance Standards and represent the most closely associated areas with quality activity expenses for child care programs. Award funds can be applied to eligible expenses incurred from July 1, 2025, to March 13, 2026. Providers should refer to the Keystone STARS CQI Award FAQ and Additional Information for clarification on allowable expenses. 

The Award cannot be used for any of the following expenses. Although the list is not exhaustive, the following is provided for general guidance.

• Purchase of land, construction, and/or major renovations.
• Purchase of gift cards, money orders, gift certificates, travel checks, or another legal tender.
• Purchase of alcohol.
• Purchase of vehicles.
• Payment toward staff entertainment, including amusement, diversion, and/or social activities or any associated costs (tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities) that are not professional development related.
• Costs of membership in a civic, community, or social organization (Kiwanis, Lions Club, etc.).
• Purchase of any second-hand (used) items, including but not limited to those from individuals, yard sales, and auctions.
• Coursework and/or professional development activities that can be funded through the Professional Development Organizations (PDO), Rising STARS Tuition Assistance Award, T.E.A.C.H, and/or the CDA Voucher programs.
• 1099 payments to salaried and/or wage employees of the child care program.
• Federally approved and/or corporate indirect cost rates assessed to affiliated programs.
• Salary increases and bonuses for staff who work solely in state early learning programs such as PA Pre-k Counts, Head Start State Supplemental Program, and Infant-Toddler Contracted Slots Program.

The following timeline reflects important dates for eligible programs to consider.

• Beginning on September 2, 2025, eligible programs will receive a Keystone STARS CQI Award Eligibility and Acceptance Letter from their ELRC electronically or through USPS. The Keystone STARS CQI Award Eligibility and Acceptance Letter will include the following:  
  • The maximum dollar amount of the CQI Award the provider is eligible to receive.
  • The eligible spending categories.   
  • The legal requirement to use the funds and submit a FER.
  • General timeline requirements.
  • An attestation statement.

• Beginning on September 2, 2025, but no later than December 1, 2025, eligible providers must:

1. 1. Review the Keystone STARS CQI Award Eligibility and Acceptance Letter that they receive from their ELRC.
   2. Enter the dollar amount they wish to receive (up to the maximum allowable amount).
   3. Sign and date the Keystone STARS CQI Award Eligibility and Acceptance Letter acknowledging that they understand and agree to the attestation information.
   4. Return the Keystone STARS CQI Award Eligibility and Acceptance Letter to the ELRC electronically (through email or fax) or USPS on or before December 1, 2025.