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 March 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

The federal government committed an additional $1.17 billion through the 2026-2027 agreement extensions.

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 up to kindergarten age, which have been reduced from an average of $44 per day in 2021 to a flat $15 per day as of April 1, 2025.

Alberta has committed 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 by March 2027.

The 2021-2026 CACWELCC agreement includes funding to reduce parent fees for an additional 42,500 non-profit spaces (28,000 facility-based and 14,500 family day home) and 26,200 for-profit spaces, for a total of 68,700 net new funded spaces.

• The one-year, $1.17-billion extension of the CACWELCC Agreement removes the family day home space creation cap and allows up to 5,000 additional for-profit spaces to improve access in areas where childcare remains limited.
• Alberta hit its existing for-profit space cap of 26,200 spaces in fall 2025. This means affordability funding for for-profit spaces remains limited and eligibility criteria implemented in May 2025 is still in place.

Progress to date (as of September 2025):

• Total net new spaces opened: 51,000 or 74% of target
• November 2021 baseline: 103,000 spaces
• September 2025: 154,000 spaces
• Overall progress: 49% increase in affordable spaces

Of the 68,700 net new spaces, Alberta has created:

• 15,000 non-profit facility-based spaces;
• 9,800 family day home spaces; and
• 26,200 for-profit facility-based spaces
• An additional 3,000 non-profit and 2,500 for-profit facility-based spaces have been previously approved for a Space Creation Grant but are not yet open.

Funding eligibility for programs

As Alberta approaches its space creation targets, funding remains limited and is only available to eligible programs. For the latest information on available childcare spaces and funding eligibility for for-profit and non-profit programs, visit Start a childcare program.

Quality care starts with well-trained, dedicated educators. Under the federal funding agreements, Alberta has committed to:

• expand 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
• 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

Parents can learn more about choosing quality childcare. Providers can learn about delivering high-quality childcare, the funding and supports available and resources for early childhood educators.