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Part of Funding and supports

Affordability Grant

Find out if your program is eligible to receive monthly operational funding to lower childcare fees for families.

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Funding and supports

Overview

The Affordability Grant is an operating grant for eligible licensed childcare programs that care for children up to kindergarten age. The grant provides monthly funding (called ‘affordability funding’) to cover the reasonable costs associated with staffing, facilities, operations, programming and administration. This funding allows programs to reduce the childcare fees they charge to families.

  • Daycares and family day homes receiving affordability funding charge a flat monthly parent fee of $326.25 for full-time care (children registered to attend 100+ hours per month) and $230 for part-time care (children registered to attend 50 to 99 hours per month).
  • Preschools receiving affordability funding can get up to $100 per enrolled child per month to reduce parent fees.
  • Monthly affordability funding amounts vary based on program type, childcare fee, region, age group and the number of hours each child is registered to attend.

Funding guide

Illustration of hand pointing to open book over light blue background

See the Affordability Grant Funding Guide below for complete details on the terms and conditions of the agreement, eligibility, funding rates, how to access grant funding and program responsibilities.

Read the Funding Guide

Eligibility

The Affordability Grant is available to eligible licensed childcare programs that provide care to infants, toddlers and kindergarten-age children (in kindergarten and also attending childcare during regular school hours).

  • this includes preschools, daycares and family day homes approved under licensed agencies.
  • programs can receive funding for children registered for full-time care (100+ hours per month), part-time care (50 to 99 hours per month) or preschool.

Funding for new spaces

Providers should be aware that funding is limited and tied to childcare space creation caps under the current federal-provincial childcare agreement. For the most up-to-date information on childcare space creation caps and remaining available funded spaces, go to Start a childcare program.

Licensed providers are eligible to sign an Affordability Grant agreement to receive affordability funding if they meet certain criteria:

  • For-profit programs

    Affordability funding is currently only available to for-profit programs in the following cases:

    • An existing program has already signed a 2025-26 Affordability Grant agreement.
    • An existing program applies to increase their number of spaces through a licence variance (with demonstrated need and a good compliance history).
    • A program has a signed a Space Creation Grant agreement and opens within the designated timeframe set out in their grant agreement.

    For-profit programs can still apply to become licensed even if they are ineligible for affordability funding:

    • Once licensed, for-profit programs can still apply for the provincially funded Alberta Child Care Grant Funding Program, which includes wage top-up, professional development, release time and mandatory employer contribution funding for certified early childhood educators.

  • Non-profit programs

    Affordability funding remains available to non-profit programs in the following cases:

    • An existing program has already signed a 2025–26 Affordability Grant agreement.
    • An existing program applies to increase their number of spaces through a licence variance (with demonstrated need and a good compliance history).
    • A new eligible non-profit daycare, preschool, or out-of-school care program (that cares for kindergarten-age children during school hours) applies for affordability funding on a first-licensed first-served basis and the space creation cap has not yet been reached.

    New family day home agency licensing applications are not being accepted at this time.

Funding and monthly parent fees

With the Affordability Grant, providers receive payments for their monthly childcare fees from both Alberta’s government (affordability funding) and families (parent fees). Childcare fees are outlined in ‘Schedule A’ of the Affordability Grant agreement and are based on program type, region, age category and the registered hours category of children in the program.

Current affordability funding and parent fee structures can be found in the Funding Guide and are also summarized below:

  • Facility-based programs and family day homes

    For facility-based programs (excluding preschools) and family day homes, monthly affordability funding payments are based on the childcare fee (outlined in Schedule A of your agreement), minus a flat monthly parent fee.

    Families pay a flat monthly parent fee based on the range of hours a child is registered to attend:

    • Full-time care (registered for 100+ hours per month): parent pays $326.25 per child
    • Part-time care (registered for 50 to 99 hours per month): parent pays $230 per child
    • Under 50 hours per month: no funding is provided and the program sets the parent fee

    For more information on childcare fees and funding calculations, read the Funding Guide and refer to:

    • Appendix A – ‘Facility-based programs’
      • This includes daycare and out-of-school care programs that care for kindergarten-age children during school hours.
      • Newly licensed facility-based programs will have their childcare fees set no higher than the maximum regional benchmarks outlined in Appendix A.
    • Appendix B – ‘Family day homes’
      • Family day homes have set regional childcare fees outlined in Appendix B.

  • Optional services and fees

    Daycares and family day homes may charge parents additional fees for eligible optional services, such as transportation, field trips, meals, extracurricular activities, diapers and overnight or extended hours care.

    • These fees are in addition to monthly parent fees and must be optional. Families must have the choice to opt in for each service and programs cannot offer preferential access based on ability to pay.
    • Optional services and fees must be reported within 30 days of signing the Affordability Grant agreement and bi-annually (October 31 and April 30).
    • Read the Funding Guide and refer to Appendix D – ‘Optional services’ to learn what optional services are permitted for your program.

  • Extended hours and overnight care

    Programs offering extended hours or overnight care receive the same Affordability Grant funding rate as daytime care and can charge parents a supplemental fee for these optional services.

    • extended hours: care provided outside of the regular hours of 6 am to 6 pm during weekdays, including evenings or weekends.
    • overnight care: care provided between 12:01 am and 5 am

    Programs must have the required licensing approval to provide care during these hours before charging supplemental fees. Childcare must not be provided for more than 24 consecutive hours.

  • Preschool Programs

    Preschools can set their own monthly parent fee, which must be inclusive of all additional fees. Preschools receive up to $100 per enrolled child per month to reduce parent fees.

    • For more details, see Appendix C – ‘Preschool programs’ in the Funding Guide.

How to apply

A program must be licensed before it can receive affordability funding. The steps to receive it are laid out in the Funding Guide and summarized below:

  • Step 1: Determine eligibility

    If you plan to open a new childcare program, or expand or purchase an existing one, contact Childcare Connect at 1-844-644-5165 to confirm eligibility for the Affordability Grant.

  • Step 2: Create an account on the portal

    The Childcare Licensing Portal (the portal) is a secure online platform licensed providers use to complete administrative tasks for funding and licensing.

    After a program’s license has been approved, they will receive an email inviting them to create a portal account, along with step-by-step instructions. If you have not received an invitation to create a portal account, contact [email protected].

    A license holder or legal representative (an individual authorized to legally act on behalf of the licence holder) must create an account in the portal to access and sign an Affordability Grant agreement. Find additional instructions and guides to help access the portal.

  • Step 3: Sign the Affordability Grant agreement

    Once an account is verified, the licence holder representative will be notified by email that the Affordability Grant agreement is available for digital signature on the portal. Be sure to review each section of the agreement before signing.

  • Step 4: Submit monthly claims

    After the agreement has been signed in the Childcare Licensing Portal, programs can start submitting monthly claims for affordability funding through the portal’s online claims system.

    Programs that do not yet have access to the online claims system must request it through the portal. Find detailed instructions and guides on how to access the online claims system and submit a monthly claim.

    Programs will receive affordability funding payments within 10 business days of submitting a claim.

Financial reporting

Programs are required to submit financial reports to ensure that public funds are being spent for their intended purpose. Programs that do not submit financial reporting as required will not be able to sign future agreements. This may also be identified as a breach of the agreement, which could impact funding and/or lead to termination. For specific information on financial reporting requirements, refer to:

Sales and change of ownership

Affordability Grant eligibility can be affected if a licensed program is sold or if its ownership (the legal licence holder) changes. This generally happens through asset sales or share sales:

  • Asset sale

    An asset sale is a transfer of ownership between different legal entities, such as between individual sole proprietors, corporations, or a mix of both, which results in a change of licence holder. This does not always involve a financial transaction.

    • A new licence application is required.
    • Funding agreements (subsidy, Affordability Grant and wage top-ups) are not transferable to the new licence holder (the buyer). However, the new licence holder will be eligible to sign a new Affordability Grant agreement if:
      • there is no gap in service, and
      • the new program remains within the established funded licensed space capacity.
    • No new Affordability Grants will be issued for sales from non-profit entities to for-profit entities.
    • If the Affordability Grant is in place following a sale, new owners cannot raise childcare fees beyond those set by the previous licence holder as part of their grant agreement.

    Licence holders should contact their licensing officers before finalizing an asset sale to make sure they are in compliance with provincial legislation and regulations.

  • Share sale

    A share sale happens when shareholders or corporate officers change while keeping the same licence holder (legal entity). If this occurs:

    • The current licence and Affordability Grant agreement remain in place.
    • Funding and fee limits continue under the existing legal entity.
    • The grant recipient (licence holder or legal representative) must immediately notify the Affordability Grant Team of any change in shareholders/directors by emailing [email protected].
    • Childcare Connect must be notified in writing of share ownership changes within 15 days of the share transfer via email at [email protected].

Contact

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