Affordability grant for child care programs

Overview

Alberta is committed to making child care more affordable by reducing parent fees. That is why, under the federal-provincial child care agreement, Alberta will be providing Affordability Grants to eligible licensed child care programs that commit to working with the government to ensure fees for all families reach $10 per day by March 2026.

Through the Affordability Grant agreement, Alberta has actioned the Canada-Alberta Canada-wide Early Learning and Child Care Agreement to support families with children up to kindergarten age attending child care during regular school hours by:

• reducing parent fees by an average of 50% for all families between January 1, 2022 and December 31, 2024
• lowering parent fees to an average of $15 per day between January 1, 2024 and March 31, 2025
• as of April 1, 2025, establishing a flat monthly parent fee of $326.25 per month for full-time care, equivalent to $15 per day, and $230 per month for part-time care*
• further lowering parent fees to $10 per day by March 2026

*Full-time is based on a child’s registration to attend 100 hours or more per month in a licensed day care facility or an approved family day home. Part-time is based on a child’s registration to attend between 50 and 99 hours per month in a licensed day care facility or an approved family day home. Parents with a child in a preschool program will receive a reduction of up to $100 off their preschool program’s stated monthly child care fees.

Eligibility

Affordability grants are open to eligible licensed child care programs such as preschools, daycares and family day homes under licensed agencies that provide care to infants, toddlers and kindergarten-age children (in kindergarten and also attending child care during regular school hours).

Programs are eligible for affordability supports for full-time (100+ hours per month) and part-time spaces (50 to 99 hours per month).

Due to a federal funding cap on for-profit spaces, eligibility criteria is changing. Starting May 15, 2025, affordability funding will only be available to for-profit programs in the following cases:

• An existing program already has a signed 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 licensing applicant is in the final stage of the licensing process, having received an email confirming their application is under final review and/or is with the regional officer for inspection as of May 15, 2025.
• A newly licensed program opens on or before September 30, 2025 in one of the high-waitlist communities of Grande Prairie, Red Deer, Lethbridge, Fort McMurray or Canmore/Banff.
• A program has a signed Child Care Space Creation Grant Agreement and opens anywhere in Alberta within the designated timeframe set out in their grant agreement.

New licensed for-profit programs ineligible for affordability funding can still apply for wage top-up, professional development, release time and employer contribution funding for certified early childhood educators. Learn more about the Alberta Child Care Grant Funding Program.

Licensed non-profit daycares, preschools, family day home agencies and out-of-school care programs providing child care to kindergarten-age children during school hours will continue to be eligible to sign a 2025-26 Affordability Grant agreement to reduce child care fees.

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 can sign a new Affordability Grant agreement if there is no gap in service.
  • If the Affordability Grant is in place following a sale, new owners cannot raise child care 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).

• No new licence or Affordability Grant agreement is needed.
• Funding and fee limits continue under the existing legal entity.
• The grant recipient (licence holder representative) must immediately notify the Affordability Grant Team of any change in shareholders/directors by emailing [email protected].
• Child Care Connect must be notified in writing of share ownership changes within 15 days of the share transfer via email at [email protected].

How to apply

To determine if your program is eligible for the Affordability Grant, contact licensing staff at your regional Child Care Licensing Office.

Eligible licensed child care programs can access the Affordability Grant agreement through the online Child Care Licensing Portal.

Read the Affordability Grant Funding Guide for additional information on the grant application process.

Fee and funding changes

Read the fact sheets below to learn more about the flat monthly parent fee and changes to Affordability Grant funding for your program. These changes took effect April 1, 2025.

• What's changing for daycare facilities
• What's changing for family day homes
• What's changing for preschools

Other child care grants

Alberta Child Care Grant Funding Program: Supports for Early Childhood Educators

Eligible programs can also apply for wage top-up, professional development and release time funding to support certified Early Childhood Educators.

• Learn more: Child Care Grant Funding Program