What Is Keystone STARS? Levels, Requirements, and Financial Awards

Keystone STARS is Pennsylvania’s Quality Rating and Improvement System for early childhood and school-age child care programs. It uses four tiers, STAR 1 through STAR 4, to measure program quality, and it ties financial awards to each tier. The Office of Child Development and Early Learning (OCDEL), a joint initiative of the Pennsylvania Departments of Education and Human Services, runs the system. Any provider with a current Department of Human Services (DHS) certificate of compliance or a Pennsylvania Department of Education (PDE) private academic license enters automatically at STAR 1. Higher designations are earned by meeting progressively tougher standards in staff qualifications, learning environments, family partnerships, and program leadership.

Who Can Participate

Three types of DHS-regulated facilities qualify: child care centers under 55 Pa. Code Chapter 3270, group child care homes serving 7 to 12 children under Chapter 3280, and family child care homes serving 4 to 6 children under Chapter 3290. Each regulation sets the baseline health, safety, and operational standards a provider must meet to hold a certificate of compliance. Programs holding a current PDE private academic preschool license also qualify, and so do Early Head Start and Head Start programs, even though those programs are not required to hold DHS certification.¹

Every eligible program must also be in good standing with the Pennsylvania Department of Revenue. A provider operating under a provisional DHS certificate, typically issued when regulatory violations are unresolved, cannot advance beyond STAR 1 and may need a full re-designation if a provisional certificate is issued mid-cycle.²

Legally exempt care arrangements fall outside the system. Relatives watching children, care provided in places of worship during services, and settings where a parent remains present at all times do not require DHS certification under Pennsylvania law, so those providers are not eligible for Keystone STARS.³

What Each STAR Level Requires

STAR 1 is automatic for any DHS-certified or PDE-licensed program and reflects the basic health and safety requirements already built into those licenses.² Moving up means meeting every quality indicator in four categories: Staff Qualifications and Professional Development, Early Childhood Education Program, Partnerships with Families and Communities, and Leadership and Management.

STAR 2

This is where measurable quality work begins. On-site leadership and teaching staff must complete an overview course on Pennsylvania’s QRIS and maintain an active profile in the Professional Development (PD) Registry, including a written Professional Development Plan. On the program side, the provider must develop a Continuous Quality Improvement (CQI) Plan informed by an annual internal assessment using an approved observation tool, write lesson plans aligned with Pennsylvania’s Early Learning Standards, and use a research-based developmental screening tool within 45 days of each child’s enrollment. Written policies are required for inclusion, suspension and expulsion prevention, family engagement (with at least one family conference per year), and transition planning between developmental stages. An annual operating budget rounds out the leadership requirements.⁴

STAR 3 and STAR 4

Both levels build on the STAR 2 foundation with higher staff credential expectations, more structured assessment, and deeper community partnerships. Programs must work with a Quality Coach and an OCDEL-approved assessor to create and carry out an Internal Assessment Process (IAP) plan. The IAP requires choosing an approved Program Observation Instrument for each age group served. Options include the Infant/Toddler Environment Rating Scale (ITERS-R or ITERS-3), the Early Childhood Environment Rating Scale (ECERS-R or ECERS-3), the School-Age Care Environment Rating Scale (SACERS-U), and the Family Child Care Environment Rating Scale (FCCERS-R or FCCERS-3).⁴ STAR 4 is the top tier and recognizes sustained performance across all four standard categories.

National Accreditation as an Alternate Pathway

Programs accredited by certain recognized organizations can apply for a STAR designation without going through the standard verification steps. OCDEL maintains an approved list, each mapped to a specific STAR level.⁵

STAR 4: National Association for the Education of Young Children (NAEYC), American Montessori Society (AMS), Association Montessori Internationale (AMI), Council on Accreditation After School Program (COA), National Association for Family Child Care (NAFCC), National Early Childhood Program Accreditation (NECPA), and 21st Century Community Learning Centers (21st CCLC).
STAR 3: Association of Christian Schools International (ACSI).
STAR 1: PDE Private Academic Nursery School License.

Even on the alternate pathway, a program still has to claim its organization profile in the PD Registry, submit its accreditation documentation, provide a CQI Plan, and confirm that staff have completed required training. The three-year designation cycle and annual renewals apply the same way. Losing the qualifying accreditation triggers a re-designation review.⁵

How a Program Gets Designated

Applications are submitted electronically through the PELICAN Provider Self-Service portal. PELICAN, short for Pennsylvania’s Enterprise to Link Information for Children Across Networks, is the state’s single management information system for early learning services.⁶ Within the portal, providers complete self-assessment fields using data from internal records and prior performance reviews, so staff PD Registry profiles, curriculum alignment evidence, and a completed CQI Plan need to be in place before applying.

A Quality Coach, assigned through the regional Early Learning Resource Center (ELRC), supports the program with guidance and technical assistance as it works toward higher benchmarks.⁷ The final review is handled by a separate Designator, who checks documentation for accuracy and typically conducts an on-site verification visit to confirm that classroom practice matches what the application describes. After the visit, the state issues the official designation and updates the public registry.

Keeping a Designation

A Keystone STARS designation lasts three years. Programs must complete annual renewals at the end of years one and two to keep the rating active. Skipping a renewal drops the program back to STAR 1 with no grace period and no warning.² At the end of year three, a full designation visit starts a new cycle.

Several events can trigger a re-designation outside the normal timeline:

Revocation, suspension, or issuance of a provisional DHS certificate of compliance.
Loss of an OCDEL-approved alternate pathway accreditation.
Quality complaints from parents, families, or other stakeholders that prompt OCDEL to investigate.
A voluntary application to move to a higher STAR level before the current cycle ends.

In each of these situations, the program may have to complete a full designation review to keep or raise its rating.²

Financial Awards by STAR Level

Programs designated at STAR 2, 3, or 4 are eligible for financial support through several channels. Specific amounts shift year to year, so providers should confirm current figures with their regional ELRC each fiscal cycle.

Continuous Quality Improvement Awards

The main award is the Keystone STARS Continuous Quality Improvement (CQI) Award, funded through federal Child Care and Development Fund (CCDF) dollars and distributed through regional ELRCs. Only programs with a regular DHS certificate of compliance and a STAR 2, 3, or 4 designation qualify. Each year, OCDEL sends eligible providers an acceptance letter stating the maximum CQI Award amount available to that program; the figure varies by STAR level and other factors, so there is no single published number.⁸ For the 2025–26 cycle, eligible providers can expect award acceptance letters in early September 2025.⁹

Tiered Reimbursement Through Child Care Works

Programs serving children who receive Child Care Works (CCW) subsidies get a daily add-on payment on top of their regular reimbursement rate, scaled by STAR level. STAR 4 programs receive the largest add-on, STAR 3 a moderate amount, and STAR 2 a smaller supplement. STAR 1 programs receive no quality add-on. For programs with significant CCW enrollment, these daily add-ons can add up to meaningful revenue and create a built-in reason to pursue a higher designation.

Rising STARS Tuition Assistance

Individual staff can access tuition support through the Rising STARS Tuition Assistance (RSTA) program. RSTA pays 95% of tuition and fees for approved coursework, after other funding sources (except Pell Grants) are applied, up to $8,000 per person per fiscal year and 18 credits. As of July 2020, RSTA funds credential-focused coursework only; it no longer pays for full degree programs. Recipients must work at least 20 hours per week at a DHS-licensed facility in good standing, have 12 months of continuous employment, maintain a 3.0 GPA, and commit to continued employment at a Keystone STARS facility for two months per credit funded, up to 24 months after the most recent course. Income caps apply: directors and owners must earn under $25 per hour or $52,000 annually, and aides, assistant teachers, and teachers must earn under $21.63 per hour or $45,000 annually.¹⁰

What CQI Award Funds Can and Can’t Pay For

CQI dollars have to be spent on expenses tied to the four performance standard categories, plus accreditation costs toward an OCDEL-approved alternate pathway. For the 2025–26 cycle, eligible expenses must be incurred between July 1, 2025, and March 13, 2026.¹¹

Common approved uses include hiring substitutes or part-time staff, staff bonuses paid through payroll, computers and child care management software, training on topics like positive behavior support and inclusive practices, adaptive equipment and materials for English language learners, health care consultation, parent workshops, and minor renovations such as interior painting, security cameras, outdoor fence repair, or replacing bathroom fixtures.¹²

Prohibited uses are equally specific. CQI funds cannot pay for land purchases, major construction or renovations that add square footage or permanent property value, gift cards or cash equivalents, vehicles, alcohol, secondhand items, entertainment unrelated to professional development, or civic organization memberships. Staff bonuses must run through payroll with taxes withheld; paying a salaried employee as a 1099 contractor with award funds is explicitly barred. Coursework that could be funded through RSTA, T.E.A.C.H., or the CDA Voucher program has to be funded through those channels instead.¹¹

1
The Pennsylvania Key. Keystone STARS Eligibility
2
The Pennsylvania Key. 2023 Keystone STARS Program Manual
3
Pennsylvania Code and Bulletin. 55 Pa Code Chapter 3290 – Family Child Care Homes
4
Pennsylvania Key. 2022 Keystone STARS Performance Standards
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PA Keys. Requirements for Programs Using an OCDEL-Approved Alternate Pathway to a Keystone STARS Designation
6
The Pennsylvania Key. PELICAN
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Commonwealth of Pennsylvania. Keystone STARS Quality Coach Position Details
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The Pennsylvania Key. Keystone STARS Continuous Quality Improvement (CQI) Award
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Pennsylvania Department of Human Services. Keystone STARS Continuous Quality Improvement Awards
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The Pennsylvania Key. Rising STARS Tuition Assistance (RSTA) Program
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The Pennsylvania Key. ELRC 25-03 – 2025-26 Keystone STARS Continuous Quality Improvement (CQI) Awards
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The Pennsylvania Key. Best Practices in STARS Financial Award Spending