Building the system
Canada is transforming child care from a patchwork market into a publicly funded system through the Canada-Wide Early Learning and Child Care (CWELCC) agreements — better known as the $10-a-day plan. Building a system means replacing the market approach with public funding, public planning and management, and a supported workforce. This page tells the story so far: what came before, what the first five years built, and what comes next.
The story so far
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Before2017
A market, not a system
Decades of patchwork services, unaffordable fees, and low international ratings — while fifty years of advocacy built the policy groundwork for change.
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2017
Multilateral ELCC Framework
Federal, provincial, and territorial governments set out the principles: affordability, accessibility, quality, and inclusivity.
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2018
Indigenous ELCC frameworks
The Indigenous ELCC Framework, followed by distinct First Nations, Métis, and Inuit frameworks.
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2021
The federal budget commits
Budget 2021 funds a Canada-wide system; all provinces and territories sign agreements and action plans.
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2021–26Phase 1
Foundations laid
Fees fall toward $10 a day, spaces expand, and supply-side public funding replaces the market approach.
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March2024
Bill C-35 becomes law
Canada’s first federal child care legislation entrenches long-term commitment to the system.
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April2026
Phase 2 begins
Agreements extended to 2031 in all thirteen jurisdictions; the next stage of system building starts.
Before the plan: a market, not a system
Canadian child care has always been a market, not a system. It has been a patchwork of insufficient services, unaffordable parent fees, inequity, quality challenges, a poorly compensated workforce, and weak and intermittent government support. Before the $10 a day plan, Canadian child care received low ratings in international analyses.
Fifty years of child care advocacy laid the policy groundwork for the kind of government vision and policy set out in CWELCC to transform the child care market into an equitable, coherent system for all.
Developments leading to CWELCC’s first phase included the Multilateral Early Learning and Child Care Framework (2017), the Indigenous Early Learning and Child Care Framework (2018), and the First Nations, Métis, and Inuit frameworks. Then came the 2021 federal budget, and the first Canada-wide provincial/territorial agreements and action plans.
The principles for CWELCC were laid out in the 2017 Multilateral Early Learning and Child Care Framework: affordability, accessibility, quality, and inclusivity.
Phase 1 (2021–2026): laying the foundations
The policy blueprint
System-building’s first phase laid the foundations for the envisioned child care system. Provincial/territorial implementation was to be shaped by common high-level policy elements. These include a universal approach, supply-side funding, expansion primarily through public and non-profit provision, and recognition of the key role of the child care workforce.
Bill C-35: the system becomes law
Bill C-35, An Act Respecting Early Learning and Child Care, Canada’s first federal child care legislation, became law March 19, 2024. Including a rights-based approach, it reaffirms federal government commitment to establishing and maintaining a system in which “all children in Canada” have access to high-quality, affordable, inclusive child care programs, “in particular those provided by public and not-for-profit child care providers”.
What Phase 1 accomplished — and what it didn’t
CWELCC’s most noteworthy first-phase development was that licensed child care (outside Quebec) became primarily publicly funded for the first time. Its main accomplishments and challenges were:
Accomplished
- Reducing parent fees to $10 a day was the first priority. By 2025, most jurisdictions used government-set fees.
- Six provinces’/territories’ fees were set at $10 a day, with others showing substantial fee reductions.
- Expansion of spaces was considerable.
Still to address
- Expansion did not meet the targets.
- Despite the “primarily not-for-profit” commitment, for-profit expansion accounted for much of the growth — in seven jurisdictions, for-profit providers accounted for more than 40% of the growth in full-day spaces.
Phase 2 (2026–2031): what comes next
The first five-year agreements ended March 31, 2026. Then-Prime Minister Justin Trudeau offered provinces/territories the chance to extend their existing agreements through 2031. Ten jurisdictions immediately accepted, with three — Alberta, Ontario and Saskatchewan — coming to agreements later.
PM Justin Trudeau stepped down in March 2025. He was replaced by Mark Carney as Liberal leader and Prime Minister. In the subsequent election, Mr. Carney led the Liberals to form government again, committing to “protect and strengthen” the CWELCC plan in the election platform.
The second phase of building Canada’s child care system officially began April 1, 2026. With agreements now extended to March 2031 in all thirteen jurisdictions, the work ahead is to keep building: continuing fee reductions, expanding spaces — especially public and non-profit — and strengthening the workforce.
Additional funding to continue building early learning and child care was not included in Prime Minister Carney’s first budget, nor was it in the Spring Economic Update in April 2026.
