Introduction
This document (the “CWELCC Cost-Based Funding Guideline” or “this guideline”) describes the calculation of cost-based funding for eligible centres/agencies under the Canada-wide Early Learning and Child Care (CWELCC) Agreement for 2025 and subsequent calendar years and provides guidance for CMSMs/DSSABs to support the administration of that calculation.
For clarity, the cost-based funding approach described in this guideline replaces the previous, “revenue replacement” approach, which—until December 31, 2024—provided funding based on the revenue “lost” due to mandatory caps and reductions of parent fees pursuant to O. Reg 137/15.
Starting with 2025, licensees are funded based on eligible costs incurred in the calendar year in respect of eligible centres/agencies, up to a maximum amount of funding determined by the formula described in this guideline.
To support the principles and smooth implementation of cost-based funding, CMSMs/DSSABs and licensees should adopt an approach of open, early, and appropriate communication. For example, CMSMs/DSSABs may provide licensees with early guidance related to cost eligibility. For clarity, such guidance or communication should be intended to minimize the risk of unexpected cost-recoveries and potential disputes and not to provide a final determination of cost eligibility, as such a determination cannot be made until reconciliation.
For information and guidance about early years and child care funding, beyond the calculation of CWELCC cost-based funding, including administration of the CWELCC program more broadly, CMSMs/DSSABs should refer to >.