ACE Is at the Table with Ontario Decision-Makers. Here Is What Their 10-Point CWELCC Plan Means for Operators.

The Association of Canadian Early Learning Programs, known as ACE, confirmed this week that it participated in six meetings with Ontario policymakers and government officials, including the Ministry of Education, to advance a 10-point sustainability framework for the CWELCC program for 2027 to 2031. Government has requested follow-up meetings.

For Ontario child care operators managing their centres under the current cost-based funding formula, this development is significant. The ACE framework proposes structural changes to how CWELCC funding is calculated and administered that would directly affect your operations, your reporting obligations, and your financial planning. Understanding what is being proposed and when it could take effect is not optional at this stage. The 2027-2031 agreement period is closer than it appears.

Why This Plan Exists

ACE is not asking government to spend more money. That framing is deliberate and strategically important. The current CWELCC program is operating under acute fiscal and operational strain. Frozen fees, rising costs, staffing shortages, and an administrative burden that costs operators thousands of dollars every month have pushed the system to a structural breaking point.

The ACE framework is built on a straightforward premise: the program cannot continue in its current form without changes that align funding with the real cost and design of child care delivery in Ontario. The 10-point plan proposes to achieve that alignment through structural efficiencies rather than increased spending.

Government officials have signalled they are listening. That is not something to take lightly.

The 10 Points and What They Mean for Your Centre

Point 1 proposes a tiered affordability model that moves away from universal $10 per day for all spaces. Under this model, a defined subset of spaces, focused on children under three, low-income communities, and shortage regions, would retain the $10 per day rate. All other enrolled spaces would be subject to an inflation-indexed fee cap. For operators, this means the fee structure governing your parent handbook could change materially after 2026, affecting your base fee revenue offset calculation.

Point 2 proposes that CWELCC funding cover only a defined standard service day, roughly eight to nine hours. Extended hours would be priced separately, with fee subsidies protecting low-income families who need extended care. Operators running programs beyond a standard day should note this carefully. Your eligible cost claim and your Program Cost Allocation are currently calculated across your full service day. A defined standard day funding model changes that math.

Point 3 proposes ending CWELCC eligibility at entry to Junior Kindergarten, with licensed school-age rooms converting to under-five spaces. This directly addresses one of the most significant inefficiencies in the current benchmark formula, where before and after school programs receive smaller allocations relative to their licensed space count. Operators with mixed-age programs should watch this point closely as it could restructure your eligible age group mix.

Point 4 is the most operationally significant proposal for operators navigating the current system. ACE proposes replacing the current cost-based reimbursement model with standardized per-space operating grants, combined with annual reconciliation within defined tolerance bands and risk-based audits.

Read that again. The cost-based funding formula, with its benchmark allocations, operating space-days, licensed space-days, eligible child ratios, Program Cost Allocations, and year-end reconciliations, is what ACE is proposing to replace. The rationale is explicit: the current model generates excessive red tape, inconsistency across Service System Managers, and administrative overhead that costs operators thousands of dollars monthly. A per-space grant model would be simpler, more predictable, and significantly less burdensome to administer.

Point 5 proposes a clear definition of the CWELCC-funded core service, with optional services outside that definition permanently exempt from clawbacks provided they do not use CWELCC-funded staff or displace funded capacity. For operators offering supplementary programs such as camps, this would remove one of the most persistent sources of eligibility disputes at reconciliation.

Points 6 through 10 address fee subsidy portability, workforce stabilization for non-CWELCC centres, performance-based expansion, capital protection through emergency repair grants, and a wage floor for non-RECE educators.

The workforce stabilization and capital protection proposals are particularly important for operators who have been managing the gap between what the benchmark covers and what it actually costs to maintain and staff a quality child care centre.

What This Means Right Now

The ACE framework is a proposal, not policy. The 2027-2031 federal-provincial agreement has not been finalized. No changes to the current cost-based funding formula have been announced. Every operator enrolled in CWELCC remains subject to the April 2026 guideline for this calendar year, including all benchmark allocation rules, reconciliation requirements, and cost review obligations.

That context matters. Whatever structural changes the 2027-2031 agreement brings, operators who enter that period with clean financial records, accurate eligible cost documentation, and a solid understanding of their current funding position will be better positioned to adapt than those who do not.

The ACE proposal to move toward standardized per-space operating grants would reduce administrative burden going forward. But it would not erase reconciliation obligations for 2025 or 2026. Cost reviews already underway in 2026 will proceed under the current rules regardless of what happens in 2027.

The current system is complex, administratively burdensome, and in many cases barely covering the bottom line for operators doing everything right. ACE is at the table making that case to government. That is encouraging. But between now and 2027, Ontario operators still have to navigate the system as it exists today.

Our consulting services are designed specifically for operators who need to understand and protect their position under the current cost-based funding formula while the next agreement takes shape. Whether you are preparing for reconciliation, responding to a cost review, or simply trying to understand what your 2026 allocation actually covers, we work exclusively for operators.

Source: ACE National (@ACE_National_), statement published June 2026. ACE National, "A Structurally Sustainable Framework for CWELCC 2027-2031," March 2026.