Ontario daycare program's future uncertain without new funding

Five years since Ottawa launched its plan for a national $10-a-day daycare program, Ontario is warning that the initiative's long-term viability is at risk without a significant increase in federal funding.

The provincial government secured a one-year extension with Ottawa at the end of last year for the child-care agreement, which had been set to expire March 31. The program currently lowers fees to an average of $19 a day in Ontario as an interim step toward the $10 target.

Families across Toronto are feeling the squeeze. One parent, Vera Belazelkoska, applied to 24 daycare waitlists after learning she was pregnant, but still has no infant spot and has had to delay her return to work. Similar stories are widespread in neighborhoods across the city, with parents reporting they've taken far more time off than planned after having children.

Ontario's Education Ministry said a "significant increase" in federal funding is necessary for the stability and longevity of the program. Without a revised federal commitment, the long-term success of the initiative is at risk, a spokesperson said.

Employment and Social Development Canada said the federal and provincial governments will "continue to work together towards long-term solutions" beyond 2026. The federal government has earmarked $15.4 billion for the Ontario program since its launch and into 2027. Ontario is reporting that about 41,000 new child-care spaces have been created so far, toward a goal of 86,000 by year's end.