The federal government has committed additional funding to its Canada-wide child-care program in Ontario, allowing participating families to continue paying an average of $19 a day and providing the sector with greater funding certainty through June 2027.
Ontario Education Minister Paul Calandra said on Sept. 29 that the extension addresses a funding shortfall in the Canada-wide Early Learning and Child Care (CWELCC) program and will prevent participating child-care fees from increasing in the near term.
Ontario Child-Care Fees to Remain Capped Through June 2027
Under the extended arrangement, fees for eligible children enrolled in CWELCC programs will remain at their current levels until at least June 30, 2027. Fees will continue to average $19 a day, with maximum daily fees capped at $22.
The commitment provides additional time for the federal and provincial governments to determine how the program will be funded and delivered beyond the current extension.
Calandra welcomed the additional federal support while emphasizing the need for a longer-term approach.
“We are pleased the federal government has recognized the need to provide additional funding to address the shortfall in its Canada-wide Early Learning and Child Care program.
This funding will maintain current fees at an average of $19 a day for families, with maximum fees no higher than $22 per day, until June 30, 2027. This agreement represents progress and will provide greater stability for parents, children and the child care sector in the medium term.
Ontario will continue to work collaboratively with the federal government as it determines the next steps necessary to sustain and deliver its child care program while providing certainty for parents, children and the child care sector over the long term.”
Extension Provides Medium-Term Certainty for Families
The extension means families with eligible children already participating in the CWELCC system will not face a scheduled increase in fees before the end of June 2027.
For child-care operators, the agreement also provides a clearer funding horizon as governments continue discussions about the program’s longer-term structure.
The federal government has committed to continuing talks with Ontario on the sustainability of the program beyond June 2027. Those discussions are expected to focus on maintaining stability for families while ensuring participating child-care providers have sufficient resources to operate.
Ontario Says Child-Care Investment Will Reach $34.5 Billion
The province said it is investing approximately $34.5 billion in child care and early-years programs between 2021-22 and 2026-27.
That total includes Ontario’s free, universal full-day kindergarten program as well as $12.3 billion allocated to child-care programs and fee subsidies, wage enhancements and other supports.
Provincial spending also covers EarlyON Child and Family Centres and the Childcare Access and Relief from Expenses, or CARE, tax credit.
The province has positioned those programs alongside the federally supported CWELCC initiative as part of the broader system serving Ontario families.
Long-Term Funding Remains Under Discussion
The latest agreement resolves the immediate question of participating child-care fees through the first half of 2027, but the longer-term financial framework remains subject to negotiations between Ottawa and Queen’s Park.
The federal government and Ontario are expected to continue discussions before the June 30 deadline, with both governments facing pressure to provide families and child-care operators with sufficient notice about any future funding or program changes.
For now, eligible families participating in CWELCC can expect fees to remain capped at $22 or less per day, with the provincial average staying at about $19.
The extension gives Ontario’s child-care sector several additional months of funding certainty while federal and provincial officials work toward an arrangement for the period beyond June 2027.