Ontario Extends Affordable Child-Care Plan with Federal Support

Ontario has reached an agreement with the federal government to extend its affordable child-care plan, ensuring that fees remain stable for families at the current average of $19 per day. Education Minister Paul Calandra announced this development in a letter to parents, stating that the extension will secure the program’s continuity until at least December 31, 2026. This move addresses the pressing concerns families have regarding the cost of child care, which Calandra described as a top priority.

In his communication, Calandra noted, “I know that child-care costs are a top concern for families… I am pleased to share that Ontario has successfully negotiated a one-year extension of the federal child-care program, which was to expire on March 31, 2026.” The extension not only maintains the average fee but also sets a maximum fee of $22 per day, providing much-needed stability for families across the province.

The federal government’s broader national child-care initiative aims to eventually reduce fees to $10 per day. Ottawa has already signed similar extensions with various provinces, but Ontario’s program faces unique financial challenges. Calandra pointed out a significant funding shortfall of $2 billion, warning that without strategic adjustments, parent fees could increase.

Despite the extension, concerns remain regarding for-profit daycares, which are still joining the Canada-Wide Early Learning and Child Care program at relatively low rates, especially in the Greater Toronto Area (GTA). Calandra emphasized that while the extension provides a temporary solution, addressing the funding issues with the federal government is essential for the long-term viability of the program.

Carolyn Ferns, public policy and government relations coordinator for the Ontario Coalition for Better Child Care, expressed mixed feelings about the extension. “Parents want both levels of government to keep their promise and fully fund $10-a-day child care,” she said. While the confirmation that the existing deal would continue past March 2026 was welcomed, Ferns noted that it also raises frustrations among advocates.

“This one-year extension cannot mark the start of backtracking on $10-a-day,” Ferns stated. The coalition continues to call for both the Ontario and federal governments to fulfill their commitments to families, ensuring that the anticipated lower rates can be achieved, rather than simply prolonging the current arrangement.

As Ontario navigates its child-care funding challenges, the recent extension offers a temporary reprieve for families while highlighting the need for ongoing discussions with the federal government to secure a sustainable future for child care in the province.