Ontario Extends Child-Care Agreement with Federal Government

Ontario has officially signed a one-year extension to its affordable child-care plan with the federal government, ensuring that fees will remain at the current average of $19 per day. The announcement was made by Paul Calandra, Ontario’s Education Minister, who addressed concerns from parents regarding child-care costs. In a letter to families, he stated, “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.”

This extension guarantees continuity of the program through December 31, 2026, providing much-needed stability for families while maintaining fees at their current levels, with a maximum of $22 per day. The federal government’s broader initiative aims to reduce fees to $10 per day, and similar agreements have already been reached with several other provinces.

Calandra highlighted the financial challenges facing the program, noting a projected $2 billion shortfall in funding for Ontario. Without intervention, he warned that parent fees could potentially increase. Meanwhile, the participation of for-profit daycares in the Canada-Wide Early Learning and Child Care program has been slow, particularly in the Greater Toronto Area (GTA).

In his correspondence, Calandra emphasized the importance of continued discussions with the federal government to address these funding issues, stating that the extension allows for further negotiations aimed at achieving a long-term solution for the program’s sustainability.

Child-care advocates have expressed mixed feelings about the extension. Carolyn Ferns, public policy and government relations co-ordinator for the Ontario Coalition for Better Child Care, remarked that while there is relief regarding the extension, frustration remains over the delay in reaching the $10 per day target. “We need both the Ontario and federal governments to keep their promise to families,” Ferns said. “This one-year extension cannot mark the start of backtracking on $10-a-day.”

The ongoing negotiations reflect the need for a collaborative approach between provincial and federal authorities to secure a sustainable future for child care in Ontario. As parents await further developments, the emphasis remains on ensuring that affordable child care is accessible for all families across the province.