Alberta's government has announced a pause on new for-profit childcare spaces receiving affordability funding as the province nears its federal cap.
CALGARY, ALBERTA / ACCESS Newswire / August 29, 2025 / Alberta's childcare sector is entering a critical transition under the Canada-Wide Early Learning and Child Care (CWELCC) program. Following the release of the Cost Control Framework and For-Profit Expansion Plan in January 2023, Alberta families were allocated access to up to 26,200 new for-profit spaces eligible for affordability funding. Alberta's government estimates the cap may be fully reached by the end of summer 2025, possibly sooner, depending on the pace of licensing applications.
An image highlighting some key areas focussing on child care in Alberta
As of May 15, 2025, new for-profit centres licensed in Alberta will no longer be eligible for the $15/day Affordability Grant, creating a significant competitive challenge as the Alberta government continues to negotiate with the federal government for a more equitable funding model.
What this means for operators and families:
For the time being, only families in new not-for-profit programs will receive affordability funding-until those spaces also meet their federal cap.
Educators in new centres, regardless of model type, will continue to have access to wage top-ups and professional development grants under Alberta's early learning workforce initiatives. However, without affordability funding, new for-profit programs will be at a competitive disadvantage, as families are likely to choose programs offering the $15/day rate.
Considerations for new childcare operators:
Evaluate whether shifting to a not-for-profit model is feasible and sustainable.
Restructure operations to be viable without grant funding, including exploring alternative tuition models.
Develop value-added services or program features that justify a higher market rate.
For prospective operators, timing and adaptability will be critical. The policy landscape could look very different by spring 2026, and those entering the sector must balance today's funding realities with the possibility of a new, more inclusive model in the near future, should the province be successful in its negotiations with the Carney Liberals..
For-Profit vs. Not-for-Profit Models
Both for-profit and not-for-profit programs are subject to the same quality regulations under Alberta Child Care Licensing and must follow provincial rules on maximum fees for full-time and part-time care. The primary difference is governance: not-for-profits are operated by a board, while for-profits are privately owned by an individual or group of owners.
To learn more about these models, key considerations for operators, and current industry trends, ChildFriendly Pro hosts biweekly webinars featuring expert-led discussions on a wide range of topics. A recent session explored this issue in depth, and a recording is available for those interested in understanding the differences between for-profit and not-for-profit models, and the impact of the new funding pause.
Legal Structures for Childcare Businesses: Non-Profit, For-Profit, Society, or Section 9?
About ChildFriendly Pro
ChildFriendly Pro is a childcare management platform founded by an experienced childcare operator. The company is dedicated to providing operators with the tools and resources they need to navigate the evolving early learning sector, including expert-led webinars and industry insights.
Contact Information
Laura Bancroft
Founder, ChildFriendly
lbancroft@childfriendlypro.com
SOURCE: Child Friendly Pro
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/education/the-future-of-for-profit-child-care-under-cwelcc-in-alberta-1066010
