Ottawa is adding $5.4 billion over the next two years to sustain the national child care program, aiming to alleviate cost pressures and maintain affordability for families across Canada. The funding, announced by Minister of Jobs and Families Patty Hajdu, comes on top of the more than $58 billion invested since 2021. This latest infusion is intended to provide stability while federal, provincial, and territorial governments work together to strengthen the early learning and child care system for the future.
The new funds are designed to help keep child care fees low for parents and support early childhood educators. The program, which began rolling out in 2021 with a goal of reducing fees to an average of $10 per day, has seen significant success in increasing parental workforce participation. In 2025, the labour force participation rate for mothers aged 25 to 54 with young children reached 79.5%. Families are reporting significant annual savings, with up to $11,255 saved per child each year.
Despite these successes, targets for creating new child care spaces have not been met in many jurisdictions, with approximately 173,500 new spaces created against a goal of 250,000 by March 2026. Some provinces, like Ontario, continue to face higher average fees at $19 per day and have indicated a need for substantial additional funding to reach the $10-a-day target. This new federal investment is flexible and can be used by provinces and territories to address their specific cost pressures.
Discussions are ongoing between federal and provincial ministers to ensure the long-term sustainability of the program, which has become a crucial economic driver and a vital support for Canadian families. The government emphasizes its commitment to working collaboratively to ensure continued access to high-quality, affordable, and inclusive child care nationwide.
