Ontario and the federal government have finalized a one-year extension to the national child-care program, ensuring that average daily fees for parents will remain at $19 throughout 2026. The program, originally set to end on March 31, subsidizes child-care costs as part of a national plan to move toward an average fee of $10 per day. While many provinces renewed their deals earlier this year, Ontario had only signed an agreement-in-principle until now.
The extension comes with $695 million in additional federal funding. Ontario Education Minister Paul Calandra says this amount is enough to prevent fees from rising next year but does not bring the province any closer to the $10-per-day target. According to Calandra, the province still faces a projected funding shortfall of about $2 billion annually if the existing structure remains unchanged. He emphasized that the new funding is a start and signals federal recognition that more money is necessary to stabilize the system.
Federal Jobs and Families Minister Patty Hajdu said both governments share a desire to maintain and strengthen affordable child care. She expressed optimism that a longer-term funding arrangement can be reached. The province, meanwhile, plans to push for changes to the limits on for-profit spaces in the system. Ontario argues that the current restriction has slowed expansion, pointing to thousands of potential spaces in regions such as Peel that were rejected because they were operated by for-profit providers. Hajdu said her focus remains on maintaining high-quality care, which she noted is often associated with public and non-profit operators.
Beyond funding, the province continues to face challenges in expanding capacity. Ontario committed to creating 86,000 new child-care spaces by December 2026 but has fallen behind schedule. The province also needs to address a shortage of early childhood educators. Updated projections show Ontario will require roughly 10,000 additional ECEs by 2026, up from the earlier estimate of 8,500. Operators and advocates say low compensation remains a major barrier to recruitment and retention.
Both governments acknowledge that improving wages will be essential for building a stable child-care workforce. Ontario has introduced a wage floor, but many in the sector are calling for a structured wage grid to make pay more consistent and competitive. Hajdu said Ottawa is open to discussions on how to support workforce stability, saying strong compensation will be necessary to ensure educators stay in the field.
