More than 150 childcare centres across Alberta are facing a financial crisis after being denied access to a federal affordability grant, forcing them to charge parents up to five times more than subsidized centres. Vidya Venkatraman is set to open up a new childcare facility in Calgary’s Beltline neighbourhood this September, but says without the grant, parents at her new facility must pay between $1,200 and $1,500 per month—compared to just $326 at centres receiving the subsidy. She invested over $500,000 and signed a 15-year lease on her new 9,000 square foot daycare, responding to government calls to meet child-care demand. All of that changed on May 15. In the middle of construction for her new centre, she learned the province had capped the number of grant-eligible spaces for for-profit operators—without clear communication or warnings during the licensing process. “I have no way of walking away from this and it’s blindsided many operators,” Venkatraman told CTV News. “We started construction without knowing that the grants were no longer available. Now, parents aren’t willing to pay these higher fees, and many on our waitlist have disappeared.” The Alberta government announced there were 26,200 childcare spaces eligible for the federal affordability grant funding provincewide, but Venkatraman, like many other for-profit operators says she was left in the dark on how these spots were allocated or how many remained available. “What’s heartbreaking is that this could have been avoided if the province had just asked operators to self-report their licensing intent after their development permit, and publicly updated how many spaces were left,” she said. “If I had known that there might be only 1,000 or 2,000 spaces left, I could have taken a decision not to sign my lease and not to move forward with this project at all.” Financial and operational fallout The Canadian Federation of Independent Business (CFIB) has heard from new for-profit childcare operators across Alberta who face devastating financial losses. “There was no communication from the Alberta government that those who had applied for the grant would not receive funding,” said CFIB Alberta senior policy analyst Kayode Southwood. “Some are facing personal losses upwards of a million dollars, including their homes.” Southwood also noted a troubling lack of accountability. “This is really an issue with Alberta’s administration of the program... the government didn’t provide clear timelines or communication to businesses, and they’ve been left financially exposed as a result.” The Association of Canadian Early Learning Programs (ACE) echoed those comments, adding that the Alberta government’s lack of transparency meant new childcare operators weren’t able to make informed decisions. A recent ACE survey found that more than 150 Alberta operators have collectively invested over $70 million and committed to long-term leases—supporting around 2,000 jobs—all now at risk due to mismanagement. “Licensing is the last step — unfortunately the way the system is structured, construction and hiring happen before licensing,” said ACE chair Krystal Churcher. “This backward process leaves people in serious financial jeopardy.” Families are also caught in the crossfire. Long waitlists and limited access to grants compound the problem. “In Alberta, families face two- to three-year waitlists. Even if a space opens, many won’t qualify for affordability grants or the $15-per-day fee. The system is failing them,” Churcher said. “Alberta secured a hard-fought win in 2023 by renegotiating for-profit inclusion in the federal program. But lack of transparency and oversight has left operators blindsided—some have lost leases, had loans called in, and even remortgaged their homes.” Churcher pointed to provincial mismanagement as a key factor in the crisis. Converting to nonprofit status, while seen as a workaround, brings its own delays. “Our survey showed over 13,000 for-profit spaces could transition to non-profit, but the process takes six to nine weeks. We don’t even know how many nonprofit spaces are actually left,” she said. With the federal $10-a-day childcare agreement set to expire on March 31, 2026, Churcher also warned of deeper uncertainty ahead. “Alberta, Ontario and Saskatchewan have already said they won’t renew. That’s 73 per cent of Canada’s childcare spaces—and it tells you this model isn’t working.” “Families need real options, not bureaucratic delays. This is about accessible care, not ideology.” Alberta focuses childcare support on high demand areas CTV News reached out to Alberta Education and Childcare Minister, Demetrios Nicolaides for an explanation as to why new for-profit childcare operators were only informed on May 15 that would no longer be eligible for a federal affordability grant In a statement from Nicolaides’ office, he says: “Despite our requests for more flexibility, the federal Canada-Alberta Canada-Wide Early Learning and Child Care Agreement still enforces a cap on how many for-profit childcare spaces can receive funding to reduce fees for parents. Given how close Alberta is to reaching that cap, we have had to make difficult decisions on how to best use the remaining spaces, while preserving parent choice.” The decision means that as of May 15, Alberta’s government will prioritize federal affordability funding for: “I will continue to advocate for Albertans to the federal government to reach a fair and flexible childcare deal for our province,” added Nicolaides. “Alberta deserves a well-funded early learning and childcare agreement that is free of arbitrary restrictions, treats all providers equitably and targets support to families most in need.” Federal ministers respond Canada’s Minister of Jobs and Families, Patty Hajdu and Canada’s Secretary of State (Children and Youth) Anna Gainey provided a joint statement to CTV News. In the wake of Alberta’s lack of cap space for federal affordability grants, they say: “The Government of Canada values Alberta’s continued partnership in the implementation of a Canada-wide early learning and child-care system that supports families in Alberta and looks forward to achieving affordable child care across the province by March 2026. “Building and maintaining a Canada-wide early learning and childcare system is a key part of the Government of Canada’s plan to make life more affordable for families and provide children with the best possible start in life and Canada will continue to work with all provinces and territories to strengthen it.” The statement went on to note that “any requirements a province or territory may put in place regarding the provision of Canada-wide ELCC funding to operators is at their discretion, provided these requirements meet the terms and conditions outlined in the Canada-wide ELCC Agreements.” A call for reform Venkatraman is now calling on the federal government to overhaul how the affordability grant is distributed, proposing that funding follow the child—not the centre. “Give the grant to parents,” she urged. “Let them choose the daycare that works for them. That way, quality and service will drive competition, and families won’t be restricted by bureaucratic decisions.” She also challenged the provincial government to recognize the economic impact of their inaction. “If a major corporation came to Alberta and promised 2,000 jobs and $70 million in investment, there would be red carpets. But when it’s small business owners—many of us immigrants and women—we’re told to wait, or worse, walk away.” With critical child-care infrastructure on the line and parents left with fewer choices, Venkatraman says it’s time for the government to step up and fix what she calls a “broken and unfair system.” “This isn’t just about our businesses. It’s about children, working parents, and the future of Alberta’s workforce. “We can’t afford to get this wrong.”
