Federal-provincial childcare agreement

Through the 2021-2026 CACWELCC Agreement, approximately $3.8 billion will be invested in childcare for children from birth to kindergarten age (in kindergarten and also attending childcare during regular school hours). Key features of this investment are:

• $3.16 billion to reduce out-of-pocket parent fees
• $185 million to support the creation of up to 68,700 licensed childcare spaces by 2027
• $152 million to increase access to equitable and inclusive childcare spaces
• $506 million to support certified educators in licensed childcare programs offering high-quality support for families in their communities

An additional $1.17 billion has been committed through the 2026-2027 CACWELCC Agreement extension.

Sustained affordable childcare supports families and ultimately Alberta’s economic prosperity. Alberta is working to reduce out-of-pocket parent fees for licensed early learning and childcare spaces for children from birth to kindergarten age. Childcare fees for children up to kindergarten age have been reduced from $44 per day in 2021 to $15 per day as of April 1, 2025.

Families have options for quality early learning and childcare where and when they need it. Alberta will support the creation of up to 68,700 licensed childcare spaces by March 2027 in facility-based programs, as well as family day homes approved by a family day home agency.

In April 2024, Alberta and Canada agreed to extend the timeline to open childcare spaces by one year from March 2026 to March 2027.

To ensure families with children up to kindergarten age (needing care during school hours) can choose the childcare that works best for them, we will:

• support licensed childcare programs – preschools, daycares and family day homes under a licensed agency
• implement a variety of initiatives to increase the number of licensed childcare spaces, creating up to 68,700 net new spaces for a total of 171,700 affordable childcare spaces for Alberta families by March 2027:
  • Total net new spaces opened as of September 2025: 51,000 or 74% of target
  • November 2021 baseline: 103,000 spaces
  • September 2025: 154,000 spaces
  • Progress: 49% increase in affordable spaces

Under this plan, Alberta families will have access to at least 42,500 more non-profit spaces. Of those, up to 14,500 may be in a family day home approved by a family day home agency. As of September 2025, Alberta has created:

• 15,000 (54%) of the 28,000 facility-based non-profit spaces target.
  • An additional 3,000 non-profit spaces have been previously approved for a Space Creation Grant but are not yet open. The Space Creation Grant is now closed.
  • The Building Blocks Capital Grant Program is available to support the creation of non-profit and public spaces.
• 9,800 (68%) of the 14,500 family day home cap.

Following the release of the Cost Control Framework and For-Profit Expansion Plan in January 2023, Alberta families will also have access to up to 26,200 more for-profit spaces. As of September, 2025:

• 26,200 (100%) of the for-profit spaces allowed under the cap* have been created.

Under the CACWELCC Agreement, there is a maximum number of for-profit childcare spaces eligible for affordability funding to help reduce childcare fees for Alberta families.

The maximum target has been met and affordability funding to for-profit spaces is now fully allocated. The for-profit space allocation criteria announced on  May 15 remains in place and Alberta will continue to target for-profit affordability funding to existing programs with high demand and new programs in communities with long waitlists. For more information, see how to start a licensed childcare program.

Early childhood educators deliver high-quality early learning and childcare programs that support children’s well-being and developmental needs.

Quality care starts with well-trained, dedicated educators. Alberta values the early childhood education profession and we will:

• increase access to the profession by increasing enrolment capacity for the free level 1 child-care orientation from 4,000 to 10,000 spaces (completed)
• support professional development, training and improved certification levels for our early childhood educator workforce
• continue wage top-ups for early childhood educators – among the highest in Canada
• continue to support the development and delivery of Flight curriculum framework
• continue to build accessibility for children of all abilities and backgrounds
• increase the number of qualified early childhood educators employed in licensed childcare programs:
  • November 2021: 18,100 ECEs
  • September 2025: 32,300 ECEs
  • Progress: 78% increase

Read more on childcare supports for inclusion.