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Limbo of Ontario’s $10/day child-care deal with Ottawa causing ‘frustration’

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Author: 
Duggal, Sneh
Format: 
Article
Publication Date: 
19 Jun 2025

Excerpts

"Frustration" and "concern" are mounting within the child-care community in the absence of a formal deal between the province and Ottawa to extend the $10-a-day child-care agreement beyond next March.

This comes as the Ford government is making it mandatory for child-care operators to share with families the communications they receive from the provincial minister responsible for the file. While the province says the move is rooted in "transparency," particularly as it works with Ottawa to extend the child-care deal, operators are voicing concern, with one calling it an "overstep."

Ontario's current $10-a-day child-care agreement with the federal government ends on March 31, 2026, and while the province has said it "would like to see an extension of the program," it hasn't yet signed a renewed agreement with Ottawa.

Through the deal and the funding that has come with it, child-care fees at centres that are part of the program have been capped at $22 per day since January.

Former prime minister Justin Trudeau announced on March 6 that the federal government had reached extension agreements with 11 out of 13 provinces and territories. While 10 of the 11 provinces had actually signed deals, Ontario said it wanted more than the $16.77 billion Ottawa offered over five years. 

In a letter earlier this month to federal Jobs and Families Minister Patty Hadju, Ontario's Education Minister Paul Calandra and three more provincial cabinet ministers said that "while we recognize the progress achieved to date related to the federal government’s Canada-wide Early Learning and Childcare (CWELCC) system, significant work remains to ensure the long- term sustainability of the program."

"Delivering on the program’s goals long-term to achieve a child-care program that benefits all families equitably — in all provinces — will require a significant increase in federal funding," they wrote, adding that without a commitment of additional federal funding, "the long-term success of the CWELCC system is at risk."

...

Calandra's office confirmed that Ontario hasn't signed a formal agreement to extend the program.

"We have yet to reach an agreement because, as the federal government has acknowledged, the cost of sustaining the CWELCC system in Ontario exceeds the level of federal funding provided, resulting in a $10 billion shortfall," said Emma Testani, a spokesperson for Calandra. 

"While Ontario has indicated that we remain committed to our share of the funding, without the federal government fully funding its portion to deliver on its promise of $10/day child care in Ontario, families could see fees rise above $22/day starting April 1, 2026," Testani added.

The situation is frustrating to at least one child-care advocate.

Carolyn Ferns, public policy coordinator with the Ontario Coalition for Better Child Care (OCBCC), said families and operators were happy to hear earlier this year that the two governments had made progress towards extending the deal on the $10-a-day program. Now, they're displeased that "it's still dragging on now, months later," Ferns said.

"The feeling in the community is one of frustration, is one of hoping that, I think, both levels of government will come to the table in good faith and do what's right for Ontario families, which is to continue this agreement, that both levels of government should be putting in what they can to make this work," she said.

"Families, educators don't really have a lot of time for this kind of ... game of chicken or playing political football with this. They really don't. They want this to work," she said.

Ferns said that while she thinks it's fine for the province to ask for more from Ottawa, she thinks Ontario should step up with additional funding. 

"Ontario's not doing enough," she said.

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Child-care memo

Last week, Holly Moran, assistant deputy minister for the Ministry of Education's Early Years and Child Care Division, sent a memo to child-care operators saying that the government had amended a regulation under the Child Care and Early Years Act "to improve transparency."

"The child care sector has experienced significant changes as Ontario works towards the goals of the Canada-wide Early Learning and Child Care System (CWELCC) system. This has created a critical need for Ontario’s families to have access to current and accurate information, particularly as Ontario works with the federal government to extend the CWELCC agreement beyond March 2026," the June 11 memo stated.

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Ferns said operators reached out to OCBCC soon after the memo was sent with questions and concerns such as, "Is the Ontario government really going into these negotiations in good faith? Are they planning on negotiating in public ... trying to, you know, stir up concern amongst parents about the program."

This follows a letter that Calandra asked child-care operators to share with families in April before the federal election and that warned of fees rising above $22/day next April without more federal funding for CWELCC.

Ferns said some operators raised concerns about the timing of the letter in the middle of the federal election and decided not to distribute it, or held off on sending it out until after the election. 

O'Neil said she still sent it out, but with an additional "explanation" that said the success of the CWELCC program "depends on decisions made at the provincial level, not solely on federal contributions."

Calandra's office defended the regulatory change, saying it aligns with the policy in place regarding communications to kids in kindergarten to Grade 12. 

"The Minister believes that families should be informed with the most up-to-date information when it comes to their children’s child care. The regulation ensures that the Minister can provide families with important updates and crucial information, for example, providing information that could impact their budgeting decisions if the federal government fails to reach a fair deal regarding CWELCC," a spokesperson said. "

This regulation in no way impacts how operators run their child care programs." The regulation also aligns with existing authorities regarding communications to parents of students in K-12 education.

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