Ontario has reached a one-year extension agreement with the federal government regarding its affordable child-care program. This extension will keep average fees at $19 per day for parents, providing reassurance as the program was set to expire on March 31, 2026. Education Minister Paul Calandra announced the extension in a letter to families, stating, "I know that child-care costs are a top concern for families... I am pleased to share that Ontario has successfully negotiated a one-year extension of the federal child-care program."

The extension ensures that fees will remain stable until at least December 31, 2026, with a maximum fee of $22 per day. The federal government aims to eventually reduce fees to $10 per day, and several provinces have already signed similar extensions. However, Calandra highlighted a significant challenge, noting a projected $2 billion shortfall in funding for Ontario's program. He warned that without additional funding, parent fees could increase.

The one-year extension includes $695 million in additional funding from Ottawa. Calandra emphasized that while this funding will prevent fee increases for the next year, it is insufficient to lower fees further toward the $10 target. He stated, "This is an acknowledgment from them that an additional $695 million is required each and every year just to maintain the $19."

Negotiations for the extension began recently, which had caused concern among parents and child-care operators about potential fee increases. Calandra expressed optimism about the negotiations, stating that both sides maintained a productive working relationship. Federal Jobs and Families Minister Patty Hajdu also expressed hope for future agreements, saying, "I think without a question there is desire by all levels of government to extend and protect child care. This is a key element of affordability for many Canadian families."

Looking ahead, Calandra plans to focus on the balance between non-profit and for-profit child-care providers. He noted that restrictions on for-profit spaces have hindered growth, particularly in Peel Region, where over 2,000 potential spaces were turned down due to operator status. Calandra remarked, "At least they’re now willing to look at that with us over the next little bit, which is light years ahead of where we were in the past."

Hajdu emphasized the importance of quality in child care, which she noted is often found in public and non-profit systems. She stated, "It’s a real key element to a successful national child-care plan, that the care is consistent in quality across the country."

In 2022, Ontario committed to creating 86,000 new child-care spaces by December 2026. However, the financial accountability officer indicated that this would still leave a shortfall of over 220,000 spots. The province has only met about 75% of its interim space creation target as of the end of 2024.

Additionally, while the number of registered early childhood educators (ECEs) has increased, it remains below the province's target. The government initially estimated a need for 8,500 more ECEs by 2026, but this figure has now risen to 10,000. Child-care operators have cited staff shortages as a major barrier to creating and maintaining spaces.

Ontario has introduced a wage floor for ECEs, but there are calls for improved compensation, including a wage grid, to enhance recruitment and retention. Hajdu expressed interest in collaborating with Ontario to identify realistic solutions to stabilize the sector, stating, "I think we all agree that in order to have a strong and stable sector we have to pay and compensate fairly and that ECE workers have to have a desire to stay."