Trudeau aiming to secure extension to 2031 for signature $10-a-day child-care program

Prime Minister Justin Trudeau visits with children at a daycare in Ottawa on Thursday, March 6, 2025. THE CANADIAN PRESS/Sean Kilpatrick

The federal government is trying to secure extensions through to 2031 for its national $10-a-day child-care program ahead of an expected election, but is already facing a few snags.

Prime Minister Justin Trudeau announced Thursday that 11 provinces and territories have agreed to extend the deals that give those jurisdictions billions of dollars to cut child-care fees for families.

Canada cannot go back to making families pay the equivalent of a mortgage payment for child care, he said.

“In the past few weeks, we’ve been working with our provincial and territorial partners to make sure that families can rely on this system, not just for years to come, but will allow this system to lock in, to become something that no government a year from now, five years from now, 20 years from now, could ever go back on,” he said at an Ottawa child-care centre.

“It’s hard to do, because there is nothing one government (can) do that can’t be undone by the following government, unless Canadians are very clear on the need to keep this going.”

Alberta and Saskatchewan are the two provinces that have not agreed to extensions, and Ontario has an agreement in principle with the federal government, rather than a signed deal.

Alberta’s Jobs, Economy and Trade Minister Matt Jones said the program under its current terms is underfunded, even with a three per cent escalator contained in the extensions, and the province will not be agreeing to one.

“As the extension proposed by the federal government does nothing to address these concerns and those of parents and providers, Alberta will instead work in good faith with the next federal government to structure a viable, fair and sustainable agreement,” Jones wrote in a statement.

“Ultimately, if sufficient funding and the required flexibility are not provided, Alberta’s government will be unable to proceed with a renewal and will be forced to transition out of what is, and will be, an unsustainable program.”

Both Alberta and Ontario have said the current deals do not come with enough federal funding to ensure the success of the program, with Ontario Education Minister Jill Dunlop saying that the funding to Ontario covers the fee reductions but little is left to help operators add more spaces or implement a wage grid for early childhood educators.

Both provinces have also been asking for more flexibility, particularly in regards to the number of for-profit operators within the program.

Ontario has agreed in principle to an extension but hasn’t signed a deal, as the province just concluded an election last week and the new government isn’t expected to be sworn in until later this month. But the province still wants more discussions with the federal government on increasing funding.

“I am willing to take the agreement extensions forward for government decision with the intention of finalizing the extensions promptly,” Dunlop wrote to Families, Children and Social Development Minister Jenna Sudds and Finance Minister Dominic LeBlanc.

“I look forward to working with you as quickly as possible to address the current funding shortfall and on how we can work together to achieve long-term sustainability for Ontario’s child care system.”

A spokesperson for the Saskatchewan government said it wants input from operators to be considered in extension negotiations, as well as flexibility to address before- and after-school programs.

“We remain ready to negotiate in good faith before the expiration of the current agreement on March 31, 2026,” Matthew Glover wrote in a statement.

Eight provinces and territories have lowered the fees that parents pay to an average of $10 a day or less, while the remaining ones have reduced fees by at least 50 per cent and are working toward $10 a day.

The extensions will see the funding increase by three per cent per year for the four years of extensions, at a cost of $36.8 billion including some infrastructure funding.

The Liberals are set to elect a new leader Sunday to replace Trudeau, and an election could be called at any time after that.

This report by The Canadian Press was first published March 6, 2025.

Allison Jones, The Canadian Press