Child care funding in Alberta is unsustainable without more money and flexibility from the federal government, according to Minister of Jobs, Economy, and Trade Matt Jones.
In a letter to Jenna Sudds, the federal minister of Families, Children, and Social Development dated Feb. 10, Jones said without increased funding and flexibility, “Alberta will be unable to proceed with a renewal”
The current early learning and child care agreements between the federal government and Alberta expire at on March 31, 2026.
Under the current agreement, Alberta received $1.1 billion from the federal government in 2024/25. According to the letter, Canada has proposed a three per cent increase beginning in 2027/28, which would amount to an additional $354.6 million over five years.
“The federal proposal, while increasing over time as requested, still falls significantly short of the funding required to address this growing deficit, which is unacceptable given this is an inflexible, federally driven program,” said Jones, who estimated the funding shortfall at $5 billion by fiscal 2030/31.
In an e-mailed statement, Geneviève Lemaire, press secretary for Minister Sudds, said the federal government is offering certainty by “extending agreements and delivering more funding to keep building and growing the system, cutting wait lists, and saving families thousands of dollars. Things have gotten more expensive over the past few years; these new offers take that into account.”
“If Minister Jones wants to walk away from a program that helps over 100,000 Alberta families save up to $11,000 per child every year, that’s on him. But he can look parents in the eye and explain why he’s throwing their savings and child care stability out the window,” said Lemaire.
In previous years, Alberta had an affordability grant which all families were eligible for; and an income-based subsidy program which further reduced or eliminated fees for families earning up to $180,000. The subsidy was scrapped in favour of a flat fee of $326.25 for all parents regardless of income beginning April 1, 2025.
In the letter to the federal minister, Jones said “Alberta’s desire is to have a fully income tested system where child care is most affordable for Alberta’s lowest income families with targeted government funding also utilized to reduce the cost of child care progressively based on household income.”
In an interview with LakelandTODAY.ca, Jones was asked why the province eliminated the income-based subsidy if the desire is to maintain an income-based reduction in fees.
“The current federal agreement is not flexible to allow us to income test, say households earning under a certain amount of income,” said Jones. “It has to average to $15 per day.”
Approximately 80 per cent of child care costs are covered by government through payments to providers. The bulk of that funding comes from the federal government with the province administering the program.
“There is intended and will be a parent co-payment for what is a very valuable and costly service to deliver,” said Jones.
Also at issue in the negotiation for the next early learning and child care agreement are the limits on what types of spaces can be created. Under the current agreement, Alberta is required to create up to 68,700 spaces, but is capped at a maximum of 14,500 family day home spaces and 26,200 private day care spaces, which Jones said is counter to the objective of affordable and accessible child care.
“[Family day homes] are some of the quickest and most cost-effective ways to create childcare in areas of high need, particularly in rural or remote Alberta,” said Jones, noting day home providers are primarily women.
The federal-provincial funding agreement only applies to licensed child care providers, whose facilities and programs must meet the standards set out in the Early Learning and Child Care Act and Regulations.
“From an operational perspective, there is no difference [between private and non-profit providers] in Alberta. They follow the same rules, they get the same funding, they hire the same staff, they care for the same children. We and other provinces, including Ontario, have requested changes to the inappropriate and counterproductive differentiation,” said Jones.
Asked why the federal government has a preference for non-profit child care spaces over day homes and private providers, Lemaire said "Research has consistently shown that not for profits provide higher quality child care because every dollar is reinvested directly in the workforce, the children, and the centres themselves."
She likened it to the privatization of health care, which she said increases costs and creates a disparity in the quality of care provided.
"It wouldn't be fair to parents or our children to let the same happen with our national child care system. Parents deserve a child care system that puts their kids first," said Lemaire.
