Province, Feds extend affordable childcare for one more year

By MEDICINE HAT NEWS on December 16, 2025.

newsdesk@medicinehatnews.com

Childcare will remain at a $15-a-day rate after the province and federal government announced it signed a one-year extension to the funding model, which was set to expire in March.

The announcement of the extended deal came Friday afternoon and will keep parent fees at $15 per day or less beyond March 31, 2026. Parents will also continue saving up to $100 per child per month in preschool fees.

According to the UCP, both federal and provincial investments will continue to pay approximately 80 per cent of childcare costs, saving families an estimated $11,000 per child per year.

“This extension is great news for Alberta families,” said Demetrios Nicolaides, minister of education and childcare. “It means parents will keep saving thousands of dollars and more childcare spaces will be available in communities that need them most.”

Part of the extension agreement will provide an additional 5,000 to for-profit childcare spaces eligible to receive federal funding. The overall cap of 68,700 funded spaces remains in place.

Additionally, the extension removes restrictions that limited federal funding to only 145,000 family day-home spaces, allowing more family day homes to qualify for government support and giving parents more options.

“Affordable childcare is an economic tool that helps Alberta grow,” said Patty Hajdu, federal minister of jobs and families. “When parents can find good, reliable childcare, they can work, train or build a business. That helps families earn more and helps the whole province stay competitive.”

Since first signing the agreement, childcare enrolment in Alberta has increased significantly, according to the province, as families now have access to more than 150,000 affordable spaces – one-third of these have been created since 2021.

The province says it will continue discussion with Ottawa over the next year to continue working toward a new-childcare deal that is financially sustainable and reflects the province’s priorities.

“Alberta’s government remains committed to working with our federal partners to secure a long-term deal that reflects Alberta’s needs and priorities,” said Demetrios.

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