Canada and Ontario agree to one-year extension of the Canada-wide early learning and child care agreement

OTTAWA, ON, Dec. 4, 2025 /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 country will continue to have access to high-quality regulated child care for an affordable price.

Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, along with the Honourable Paul Calandra, Ontario's Minister of Education, announced a one-year extension to the Canada–Ontario Canada-wide Early Learning and Child Care (Canada-wide ELCC) Agreement, until March 31, 2027. The ministers also announced that future funding of $695 million would be instead provided by Canada to the province in 2026, to help maintain eligible child care fees at their current average of $19 per day until December 31, 2026.

In total, today's announcement means that more than $3.9 billion in federal funding will be allocated to the Government of Ontario in 2026-27 to support continued access to high-quality, affordable, flexible and inclusive early learning and child care programs and services. This follows $11.5 billion allocated to the Government of Ontario, under all early learning and child care agreements and $28.5 billion in provincial investment in early years and child care (including full-day kindergarten) over the term of the initial Canada-wide ELCC Agreement (2021-22 to 2025-26).

Building on this extension, the governments of Canada and Ontario will continue to work together towards long-term solutions for the Canada-wide ELCC Agreement, to support the continued implementation of the Canada-wide early learning and child care system beyond 2026.

Quotes

"Affordable child care is an economic tool that helps Ontario grow. When parents can find good, reliable child care, they can work, train, or build a business. That helps families earn more and helps the whole province stay competitive. In Ontario, lower fees are saving families thousands of dollars and keeping more people in the workforce. We will keep working with partners to protect and expand these 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

"This extension will keep fees from rising next year and give families the stability they need to plan ahead with confidence. It reflects our shared commitment to an affordable and reliable child care system. We will continue working with the federal government on a long-term, sustainable agreement that meets Ontario's needs and supports families in every community across the province."
– The Honourable Paul Calandra, Ontario's Minister of Education

"Families have shared with us just how impactful it has been for them to access affordable licensed early learning and child care, the fee reduction is not only supportive today but changing the future for all Canadians."
– Kim Hiscott, Chief Executive Officer, Andrew Fleck Children's Services

Quick facts

• In addition to the Canada-wide agreement announced today, Canada and Ontario have extended two other existing agreements related to early learning and child care:
  • a bilateral agreement originally signed in 2017 that provides support for early learning and child care programs and services throughout the province until March 31, 2031; and
  • a fourth and final year of the Early Learning and Child Care Infrastructure Fund, previously announced in March 2024.
• As of January 1, 2025, the Government of Ontario capped eligible child care fees at a maximum of $22 per day for early learning and child care providers enrolled in the Canada-wide system, bringing the average for such fees down to $19 per day.
• As of June 2025, Ontario reports that about 41,000 net new Canada-wide early learning and child care spaces have been created in Ontario, toward the goal of 86,000 new spaces by the end of December 2026 (relative to 2019 levels).
• The Canada-wide Early Learning and Child Care Agreements with provinces and territories are helping across the country.
  • The families of approximately 900,000 children are benefiting from affordable and high-quality child care across the country.
  • Eight provinces and territories are delivering regulated child care for an average of $10 a day or less, and all jurisdictions have reduced fees by 50% or more to support the affordability goals of the Canada-wide early learning and child care system.

Associated links

• Canada–Ontario Canada-wide Early Learning and Child Care Agreement - 2021 to 2026
• Find and pay for child care in Ontario
• Canada Early Learning and Child Care Act

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SOURCE Employment and Social Development Canada

Contacts : For media enquiries, please contact: Jennifer Kozelj, Senior Communications Advisor and Press Secretary, Office of the Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, [email protected], 343-540-6643; 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]