Alberta yet to sign federal childcare deal as negotiations continue

Alberta is one of two provinces that have not signed an extension to the childcare agreement with Ottawa, saying families need more choice, fair funding, and income-based support.

The federal plan is set to deliver daycare nationwide by 2026, aiming to reduce childcare spending for families with children under 6 years old to $10 a day, which some operators have said is unrealistic. Alberta and Saskatchewan have yet to finalize a deal.

Announced in February, the Alberta government replaced its childcare subsidy program with a $15 a day fee for families with children up to kindergarten age, which would become $10 a day in 2026. A grant program was also implemented to help child-care providers expand and upgrade existing facilities.

Krystal Churcher, the chair of the Association of Canadian Early Learning Programs, says the rollout of the federal program has created challenges.

She points to limited choice for families, underfunding, and a lack of recognition that childcare systems differ across provinces.

“I think the main issues that we’re seeing with the rollout of this program are around that accessibility for families, the choice, the underfunding, and just really not … really understanding how childcare worked so differently across different provinces,” she told CityNews.

In a statement, Alberta Education and Childcare Minister Demetrios Nicolaides says the province has reached out to the federal government, stating its terms for a new agreement.

The terms include an income-tested system providing support to families who need it most.

“We need to direct funding in ways that reflect Albertans’ priorities and make sure our mixed market of non-profit and for-profit providers has equal access to public funding,” he said.

Recently, provincial Auditor General Doug Wylie found more than half the audited child-care operators that received public grants had discrepancies in their claims.

Some were billed for hours never worked, while others didn’t pass on wage top-ups to staff or fee reductions to families. One month, a provider was overpaid by $26,000 due to a bogus claim.

Wylie said without proper verification, Alberta could be overcompensating operators with federal and provincial funds meant to lower the average cost of daycare to $10 per day. The province responded, saying it is working on a solution to strengthen the claims process.

The current childcare agreement is set to remain until March 31, 2026.

With files from The Canadian Press