Toronto — Ontario has reached a one-year extension agreement with the federal government to continue the national $10-a-day child-care program, ensuring that parents across the province will continue paying an average of $19 per day for at least another 12 months.
The extension, announced Monday, provides $695 million in additional federal funding, preventing fee increases that were set to take effect when the program’s original funding agreement expired on March 31, 2026.
Ontario Education Minister Paul Calandra confirmed the deal and said the extension is “a great start” and a recognition by Ottawa that additional support was necessary to maintain affordability. “This doesn’t bring us down to $10 on average,” Calandra said. “It maintains us at $19 on average over the next year, and we’ll continue to work on how we can bring it down together.”
Calandra had previously warned that without further federal contributions, Ontario faced a shortfall of $2 billion annually, which would have forced parent fees to rise. Negotiations between the two governments resumed in recent weeks, with both sides describing the talks as constructive and collaborative.
Federal Minister of Jobs and Families Patty Hajdu expressed optimism about reaching a longer-term agreement. “There is a clear desire by all levels of government to extend and protect child care,” Hajdu said. “This program is a key element of affordability for many Canadian families.”
The new funding ensures that Ontario parents will continue to benefit from reduced child-care costs as both levels of government work toward the ultimate goal of achieving an average daily rate of $10. When Ontario signed its initial child-care deal in 2022, it committed to creating 86,000 new child-care spaces by December 2026, but the province has so far reached only about 75 percent of its interim target.
Calandra also said future discussions will focus on increasing flexibility in how spaces are created, particularly addressing the for-profit versus non-profit operator ratio. The current federal cap on for-profit providers has limited growth in some regions, including Peel Region, which reportedly had to turn down more than 2,000 potential child-care spaces under the existing agreement.
Hajdu noted that while Ottawa remains committed to expanding access, the federal government is prioritizing high-quality care, which she said is “often found in public and non-profit systems.”
One of the ongoing challenges remains the shortage of early childhood educators (ECEs). Ontario estimates that it will need 10,000 more ECEs by 2026 to meet system demand. While the province has introduced a wage floor, workers and advocates continue to call for a provincial wage grid to attract and retain qualified educators.
“I think we all agree that in order to have a strong and stable sector, we have to pay and compensate fairly,” Hajdu said. “ECE workers have to have a desire to stay, and that requires stability and respect in their profession.”
With the one-year extension secured, both governments are expected to continue negotiations toward a multi-year funding framework that will make affordable, high-quality child care sustainable for the long term.