Tag: Mark Carney

The Canadian federal government has announced an additional $5.4 billion investment over the next two years to support the national $10-a-day child care program, responding to mounting concerns from provinces, territories, and child-care advocates that progress toward affordable child care was at risk.

Jobs and Families Minister Patty Hajdu said the funding is intended to help provinces and territories manage rising costs, expand access, and address workforce shortages among early childhood educators.

“Certainly, money has been part of the challenge,” Hajdu said ahead of a meeting with provincial and territorial counterparts. She noted that Ottawa has already committed $58 billion to affordable child care nationwide and that the new funding will provide flexibility for provinces to address their specific needs.

The national child-care program, launched in 2021, aimed to reduce average child-care fees to $10 per day and create 250,000 new child-care spaces across Canada. While many jurisdictions have significantly reduced fees, several provinces have yet to achieve the $10-a-day target.

Ontario remains one of the largest challenges. Average child-care fees in the province currently stand at approximately $19 per day, and provincial officials have previously stated that an additional $2 billion annually would be required to fully meet the federal target.

Ontario Education Minister Paul Calandra welcomed the announcement but said the province would need to review funding allocations before determining whether the package is sufficient.

“Ontario has long been clear that current funding levels are not sufficient to support the long-term sustainability of the child care program,” Calandra said, emphasizing the need for a permanent funding solution.

Alberta Education and Childcare Minister Demetrios Nicolaides also expressed cautious optimism, stating that the province looks forward to reviewing the details while continuing negotiations for a long-term agreement that reflects Alberta’s needs.

Advocates for universal child care had raised alarms earlier this year after the federal government’s spring economic update failed to include additional funding commitments. Many warned that without new investments, provinces would struggle to maintain fee reductions, create new spaces, and retain qualified staff.

Child-care policy expert Gordon Cleveland described the announcement as a major signal that Prime Minister Mark Carney’s government intends to continue supporting the program long-term.

“The first very strong commitment,” Cleveland said, “which says, ‘OK, we, the new federal government, are in this for the long haul.’”

Despite the funding boost, some advocates remain concerned about the program’s future beyond the two-year funding window. The Ontario Coalition for Better Child Care welcomed the investment but warned that long-term stability remains uncertain.

“This is a short-term increase,” said policy co-ordinator Carolyn Ferns. “We cannot build a system that lasts for generations on two-year instalments with the threat of a funding cliff.”

The federal government says the program has already produced substantial benefits for families. According to Hajdu, Canadian families are saving an average of approximately $11,000 per child annually through reduced child-care fees.

However, lower fees have also increased demand for spaces, leading to lengthy wait lists in many communities. While the original agreements targeted the creation of 250,000 new child-care spaces by March 2026, government figures indicate that approximately 173,500 spaces have been added so far.

The new funding may also strengthen negotiations with provinces such as Ontario and Alberta, which previously signed only one-year extensions to their child-care agreements rather than the five-year deals accepted by most jurisdictions.

In addition to financial support, Ottawa will require enhanced data sharing from provinces and territories to better identify gaps in access, affordability, and operational challenges across the child-care system.

Hajdu said improved data will help governments better understand barriers facing families and providers while ensuring future investments are directed where they are needed most.