Hope is fading fast for Ontario parents counting on the federal government's promised $10-a-day childcare. Despite recent emergency funding, the program remains significantly underfunded and unable to deliver on its core promise of affordable, accessible care for Canadian families.
Emergency Funding Merely Maintains Status Quo
Ontario Education Minister Paul Calandra recently announced $695 million in new federal money to sustain the province's childcare program. While this injection prevents immediate collapse, it only maintains the current average daily rate of $19 per day until the end of next year. The funding falls dramatically short of what's needed to either expand capacity or reduce prices to the promised $10-a-day target.
Minister Calandra delivered a sobering assessment to reporters at Queen's Park, stating, "I don't think, frankly, that we will be in a position to meet the $10-a-day program as set up by the federal government unless they are willing to step up to the plate and add the money that is required to get us to $10 a day."
A Problem Predicted From the Start
The current funding crisis comes as no surprise to those who critically examined the program's initial framework. When former Prime Minister Justin Trudeau announced the $10-a-day plan in 2021, the ambitious proposal was over-hyped and underfunded from its inception. This fundamental flaw explains why Ontario was the last province to sign onto the agreement, expressing concerns that have now materialized into concrete problems.
The provincial government now shares ownership of what has become a system in distress. Last month, Ontario Auditor General Shelley Spence confirmed that reduced fees have dramatically increased demand for licensed, professional childcare supported by the federal program. Unfortunately, supply has failed to keep pace with this surge in interest.
Critical Shortfalls and Perverse Outcomes
By the end of 2024, Ontario had added only 36,000 new spaces under the program, significantly short of the 48,000-target. Even this missed target represents a modest accomplishment compared to the overwhelming need. The province's Financial Accountability Office estimates the federal plan will ultimately fall short of demand by approximately 220,000 spaces.
Perhaps most troubling among the auditor's findings is a disturbing trend affecting society's most vulnerable. Childcare enrolment for lower-income families has decreased by 31% compared to 2019, despite these families being eligible for additional fee subsidies. The report suggests that reduced-income families are being squeezed out of the limited available spaces by an influx of new parents entering the licensed childcare program.
Negotiations between Ontario and the federal government to extend the childcare deal to 2031—as most other provinces have done—have reached an impasse primarily over funding. The federal government has offered Ontario $16.8 billion over five years to renew the program, but the provincial government insists it requires an additional $2 billion per year to meet expansion targets and deliver the promised $10-a-day care.
