‘Devastating’: Federal cap on funded for-profit child-care spaces has Alberta providers concerned

Some for-profit child-care providers say their livelihoods are at stake as the federal government caps how many of them are eligible for funding.

An association representing Alberta providers says the business model shouldn’t matter, while some Alberta families say finding affordable daycare is a challenge and a scramble.

Last week, some for-profit providers learned they would be left out of the affordability program.

Alberta has not signed a contract extension with Ottawa for the Canada-Wide Early Learning and Child Care Agreement beyond next year.

The chair of the Association of Alberta Childcare Entrepreneurs says communication with both the provincial and federal governments has been “consistently disappointing.”

“I think this rollout of this program has been such a mess on every aspect of it,” said Krystal Churcher.

Rhesa Palaypay from Trinity Early Learning wrote to CTV News saying the second child-care facility it expected to open later this summer is in jeopardy.

“It has been devastating to learn that, due to the federal cap on for-profit spaces, this new centre will not be eligible for affordability funding,” Palaypay said in an email.

“Many providers like me have invested significant resources to provide quality care for families. We need the federal government to advocate for increasing or removing the cap on funded for-profit child-care spaces.”

Churcher agrees the program has a misplaced focus.

“It’s based on quotas and hitting space targets; it’s not based on the quality of the spaces that are being created,” Churcher said.

Alberta’s education and child-care minister says he will negotiate with Ottawa shortly.

“I do want to negotiate and chat a little bit more with the federal government to ensure that we have a model that meets Alberta’s needs when it comes to child-care operation,” said Demetrios Nicolaides.

He says his office plans to have a discussion with Alberta child-care providers and operators in the coming months.

He also encourages concerned providers to get in touch.

As part of funding deals with the federal government, Alberta is aiming to bring down licensed child-care parent fees to $10 per day by the end of March 2026.

According to the federal government, child-care fees in Alberta have been reduced to $15 a day on average as of February 2025, with an estimated annual savings of $13,700 per child.

Alberta has committed to creating up to 68,700 new child-care spaces by March 31, 2026, including at least 42,500 non-profit and up to 26,200 for-profit spaces.

A total of 31,400 spaces have been created since 2021, the federal government said.

Starting on April 1, the province is implementing flat fees for parents with children up to kindergarten age attending licensed daycare facilities and family day home programs.

For full-time care, parents will be eligible to pay $326.25 per month, while parents requiring part-time care will pay $230 per month.

Parents with children in preschools will instead have a reduction of up to $100 off their monthly fees, as opposed to a flat monthly parent fee.

With files from Brendan Ellis