The Keystone STARS Continuous Quality Improvement (CQI) Awards are paid to eligible child care programs with a Department of Human Services (DHS) regular Certificate of Compliance (CoC) and designated as a Keystone STAR 2, 3, or 4. The intent of the Awards is to improve, support, and recognize the quality of Pennsylvania’s early learning and school-age programs.

To be eligible for a 2026-27 Keystone STARS CQI Award, a provider must meet all the following requirements as of July 31, 2026 , and at the time of the Award payment issued by the ELRC:

• DHS Certification Status: The provider must possess a current, regular DHS certificate of compliance. Providers with provisional certificates, those in a “refuse to renew” status, or those with revoked certificates are ineligible. An exception is made for providers operating with a provisional certificate of compliance due solely to a change in location under the same legal entity. Newly opened programs operating with an initial provisional certificate will remain ineligible.   
• Keystone STARS Designation: The provider must be designated as a Keystone STAR 2, 3, or 4 program and must not be in a Keystone STARS Suspension status.

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

• Prior CQI Award and financial Standing (if applicable)

The provider must:

• Have completed the reporting requirements for all previous grants and awards offered through OCDEL; and/or
• Not have an open referral or active repayment plan with the Office of Attorney General (OAG).
• State Financial Standing: The provider must not have any outstanding liens or liabilities with the Pennsylvania Department of Revenue.

Providers who meet the above eligibility criteria as of July 31, 2026, but do not meet the criteria at the time of payment by the ELRC will be deemed ineligible to receive the award. 

Eligibility Exception for STAR 1 Programs 

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 meet all of the following criteria:

• Have an open move up designation case in the PD Registry Designation System as of July 31, 2026, and
• Successfully move up to a STAR 2, 3, or 4 as demonstrated by a completed designation case in  in the PD Registry System and a confirmed designation in PELICAN Keys to Quality on or before October 30, 2026, and
• Meet all other eligibility criteria at time of payment by the ELRC.

Special Consideration for STAR 2 and 3 Programs

OCDEL is also offering  special consideration for STAR 2 and STAR 3 programs that meet all eligibility criteria on July 31, 2026, and move to a higher STAR designation.

To qualify for a higher CQI Award amount, a STAR 2 and 3 program must meet all of the following criteria

• Have an open move up designation case in the PD Registry Designation System as of July 31, 2026; and
• Successfully move 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 30, 2026; 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 July 31, 2026 , and planning to complete their move up designation on or before October 30, 2026, 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 2026–2027 CQI Award amounts remain largely consistent with previous CQI award cycles, with several targeted adjustments based on provider feedback.

Changes include:

• Family Child Care programs will receive an additional $250 at each STAR level compared to previous CQI Award cycles.
• School Age Child Care programs will also receive an additional $250 at each STAR level compared to previous CQI Award cycles.
• The addition of two new capacity tiers which include increased award amounts at each STAR level to better reflect program size and operational differences among larger providers. Previously, all centers with a licensed capacity of 181 or greater received the same award amounts at each STAR level. The two new capacity groupings are:
• Licensed capacity of 181–250
• Licensed capacity of 251 and over

These revisions were informed by provider feedback gathered over the past year through direct feedback shared with OCDEL and provider discussion groups facilitated through the State Advisory Council.

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

Eligible programs may 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 (related to an OCDEL- approved Alternate Pathway)

These categories align with the Keystone STARS Performance Standards and reflect key areas that support quality improvement in early learning programs. Award funds may be used for eligible goods and services purchased, received, and paid in full between July 1, 2026, and April 2, 2027. Providers should refer to the Keystone STARS 2026-2027 CQI Award Provider Resource Manual for clarification on allowable expenses.

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

• Beginning on August 31, 2026 , 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 August 31, 2026, but no later than November 30, 2026, eligible providers must:

1. 1. Review their Keystone STARS CQI Award Eligibility and Acceptance Letter.
   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 Letteracknowledging that they understand and agree to the attestation information.
   4. Return the Keystone STARS CQI Award Eligibility and Acceptance Letterto the ELRC electronically (through email or fax) or USPS on or before November 30, 2026.