CWELCC Extended to December 2026: What Ontario Operators Need to Know

In November 2025, Ontario and the federal government confirmed a one-year extension of the Canada-Wide Early Learning and Child Care (CWELCC) agreement, now running through December 31, 2026. For licensed child care operators enrolled in the program, this extension brings both relief and new questions.

What the Extension Means for Operators

The federal government committed $695 million in additional funding to support Ontario's child care system through the extension period. For enrolled operators, cost-based funding continues through December 31, 2026, parent fees remain capped at $22 per day for children ages 0 to 5, and benchmark allocations, WEG, and WCF payments continue under 2026 guidelines. No re-enrollment is required for currently participating centres.

The $10-a-Day Target Has Been Delayed

Ontario's auditor general confirmed in late 2025 that the province will not reach the $10-per-day average fee target by March 2026 as originally promised. The auditor general estimated a potential $1.95 billion funding shortfall if the agreement is extended with similar funding commitments, and projected a shortfall of approximately $20 per space per day for operators.

For operators, this signals that the funding formula - and the pressures that come with it - is unlikely to dramatically improve in the near term.

Space Creation Targets Are Behind

Ontario committed to creating 86,000 new licensed child care spaces by the end of 2026. As of late 2025, the province had reached only 75 per cent of its interim targets. The auditor general also estimated that Ontario could be short approximately 10,000 Registered Early Childhood Educators (RECEs) by the end of 2026 - a staffing crisis that is forcing some centres to operate below licensed capacity, directly reducing their funding allocation.

What This Means for Your 2026 Allocation

The 2026 funding guidelines remain in effect as published by the Ministry of Education. Your allocation is calculated using the same Schedule A benchmark rates, Geographic Adjustment Factor, and Growth Multiplier that were communicated in late 2025. No mid-year changes to the formula are expected.

However, the uncertainty around post-2026 funding is real. Operators should use 2026 as an opportunity to maximize their current year allocation through scenario planning, build reserves using the Allocation in Lieu of Profit/Surplus, document eligible expenses thoroughly to defend their full claim at reconciliation, and understand every provision of the current formula before any renegotiated model takes effect.

The Path Forward

Negotiations for a renewed multi-year CWELCC agreement are expected to begin in 2026. The outcome will shape the funding environment for licensed child care in Ontario through at least 2027 and beyond. For now, your 2026 allocation is confirmed - and making the most of it starts with understanding the formula completely.