**Ontario Faces $2 Billion Shortfall in Child Care Funding** Ontario is projected to encounter a nearly $2 billion funding gap for its national child-care program in the upcoming year. The province must reach an agreement with the federal government soon to allow families to plan for their child-care expenses, according to a report from the auditor general. The report highlights that the provincial government also needs to tackle staffing and space shortages in the Canada-wide Early Learning and Child Care agreement, which is set to expire next spring. The child-care initiative aims to provide services at an average cost of $10 per day, and Ontario has already seen a 50% reduction in fees. "Parents and guardians of children enrolled with child-care licensees participating in the program have received the benefit of reduced fees," the report states. However, it warns that "the long-term sustainability of the program is uncertain. Families need to know what will happen in April 2026, which is only six months away, and the years beyond so they can plan for their child-care costs." In response, the education ministry stated it will maintain the $10-a-day average and "will take corrective action as needed to ensure that target is realized." Without a new agreement between the provincial and federal governments, fees could potentially rise to over $30 per day. Prior to the current program, fees averaged $39, and in Toronto, they reached $89 per day. The report indicates that the funding shortfall for 2026-27 is estimated at $1.95 billion. In one scenario, if parents were to cover this shortfall, their average fees could rise to about $32 per day. The auditor recommends that Ontario examine the costs of other provinces that have successfully achieved the $10-a-day target ahead of schedule. Additionally, the report calls for addressing the shortage of early childhood educators and the number of unfilled spots in child-care centers. It also notes a decline in enrollment for children requiring subsidies, prompting a suggestion for the ministry to investigate the reasons behind this trend. A recent study found that only half of the provinces in Canada offer $10-a-day care. However, six provinces or territories have either met or exceeded this fee. Although Ontario has not reached this milestone, fees have significantly decreased. Since 2019, fees in the Toronto area have dropped by approximately $1,000 per month for parents of infants and about $700 for those with preschoolers, averaging around $22 per day. Education Minister Paul Calandra has previously stated that the federal government needs to increase its funding, warning that an additional $10 billion over five years is necessary. Without this funding, he cautioned that fees could rise again. The education ministry has accepted all of the auditor's recommendations. In a separate report, the auditor general noted that Ontario is not on track to meet its targets for child-care fees, the number of spaces created, or the percentage of qualified staff within the $10-a-day system. The province had committed to creating 86,000 new spaces by December 2026 but has only achieved about 75% of its interim target as of the end of 2024. The auditor pointed out that the government altered its approach to assigning space creation targets, focusing on areas that could quickly create spaces rather than those most in need. While the number of registered early childhood educators has increased, it remains below the province's target. The estimated need for additional early childhood educators has risen from 8,500 to 10,000 by 2026.