Canada and Ontario agree to four-year extension of Canada-Ontario Canada-wide Early Learning and Child Care Agreement

VAUGHAN, ON, Sept. 29, 2026 /CNW/ -- Affordable child care is essential to Canada's economy. Every child deserves the best possible start in life, and every parent deserves the peace of mind that comes from knowing their child is cared for, in a safe and inclusive environment.

That is why the governments of Canada and Ontario continue to work together to support the successful implementation of the Canada-wide early learning and child care system, ensuring that families across the province will continue to have access to affordable, high-quality, regulated child care.

Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, and the Honourable Paul Calandra, Ontario's Minister of Education, announced a four-year extension to the Canada–Ontario Canada-wide Early Learning and Child Care Agreement. Through the extension, Ontario will receive nearly $12 billion in federal funding over the next four years, from March 31, 2027, to March 31, 2031. 

As part of this extension, Ontario is committing to maintain current child care fees at $19 per day on average until June 30, 2027.

Keeping child care affordable remains a shared priority as families continue to navigate economic pressures. Over the next year, the governments of Canada and Ontario will work together to maintain affordable fees and establish a sustainable path forward for child care across the province.

This work will include negotiations about Ontario's share of the $5.4 billion over two years announced by the Government of Canada in June 2026 to help provinces and territories maintain stable and affordable child care fees for families.

The Canada-wide early learning and child care system is an important social infrastructure that is helping to build Canada strong by supporting increased participation in the labour force, especially among mothers, boosting economic growth and creating jobs in the early childhood sector.

Quotes

"Affordable child care is an investment in Canada's future. It helps give children the best start in life, while giving parents the support they need to work, go to school, or build a business. That helps families earn more and helps the whole province stay competitive. Through this extension, we are protecting the progress we have made and ensuring more families can continue to access affordable, high-quality and inclusive child care. We will keep working with partners to protect and expand spaces so every child can learn, and every family can plan for a strong future."
– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

"We are pleased the federal government has recognized the need for additional funding to address the shortfall Ontario has identified. This funding will help maintain current fees at an average of $19 a day for families and provide greater stability for the child care sector. This agreement represents progress, and we will continue discussions with the federal government to provide Ontario families and the child care sector with the stability they need over the long term."
– The Honourable Paul Calandra, Ontario's Minister of Education

"The Canada-wide early learning and child care agreement has been delivering generational benefits to Ontario families since it was announced by the federal and provincial governments almost five years ago. Every day, our charity sees how this investment in child care allows parents to contribute to our economy, grow in their careers, and improve their family's financial well-being knowing that their children are receiving high-quality, affordable care. Extending this agreement today is an important milestone that provides stability for a program that is making an incredible difference in the lives of so many families at YMCAs and other participating child care centres."
– Lesley Davidson, President and CEO of the YMCA of Greater Toronto

Quick facts

• The funding provided under the four-year extension to the Canada–Ontario Canada-wide Early Learning and Child Care (ELCC) Agreement is in addition to the $13.8 billion allocated to the Government of Ontario under the Canada-wide ELCC agreement between 2021–22 and 2026–27. 
• As of January 1, 2025, the Government of Ontario capped eligible child care fees at a maximum of $22 per day for providers enrolled in the Canada-wide ELCC system, bringing the average for such fees down to $19 per day.
• The collaborative work with provinces and territories has reduced the cost of regulated ELCC by at least 50% across the country.

Associated links

• Canada–Ontario Canada-wide Early Learning and Child Care Agreement – 2021 to 2026
• Canada and Ontario agree to one-year extension of the Canada-wide early learning and child care agreement
• Minister of Jobs and Families announces new funding to maintain affordable early learning and child care in Canada
• Canada-Ontario early learning and child care agreement
• Canada Early Learning and Child Care Act

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SOURCE Employment and Social Development Canada

Contacts: For media enquiries, please contact: Aissa Diop, Director of Communications, Office of the Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]; Emma Testani, Press Secretary, Office of the Minister of Education, [email protected]; Media Relations, Ministry of Education, [email protected]