Ontario renews childcare agreement with federal goverment

A key move toward lowering childcare fees in Ontario to $10 a day.

Ontario is extending an agreement with the federal government on its national program until the end of March 2027.

The agreement also comes with $3.9 billion in funding.

Federal Minister of Jobs and Families Patty Hadju says it also comes with additional funding for next year.

“Ontario will also receive an advanced allocation of $695 million in 2026 to help stabilize childcare fees and keep current fees at an average of $19 per day while we work on a longer agreement,” says Hadju.

There are expectations that Ontario will reach the $10 a day mark in the near future.

Ontario’s Education Minister Paul Calandra says the money will help address capacity and staffing issues that are holding back that rate.

“The certainty of the program and the dollars behind it also allows our partners to begin the process of acquiring more spaces,” says Calandra.

“On the workforce side, we have to balance new spaces with ensuring that we have the workforce to cover the new spaces.”

A recent report from Ontario’s Auditor General identified the need for at least 10,000 early childhood educators.

Some childcare providers have the space to add more children, but not the staff required.

The provincial government says there were about 41,000 new spaces that opened up as of this June.

It aims to have 86,000 new spaces by the end of December 2026.