Question Period Note: EARLY LEARNING AND CHILD CARE INFRASTRUCTURE FUND AND THE CANADA-WIDE EARLY LEARNING AND CHILD CARE SYSTEM

How will the new Early Learning and Child Care Infrastructure Fund announced in Budget 2022 complement investments provided for the Canada-wide ELCC system through Budget 2021?

Budget 2022 proposed to provide $625 million over four years, beginning in 2023-24, for an Early Learning and Child Care Infrastructure Fund.

Provinces and territories will be able to make infrastructure investments that support underserved communities to advance inclusion in the Canada-wide early learning and child care system.

The Fund will also exclusively support not-for-profit and public, regulated early learning and child care providers in recognition of the specific challenges they face in financing capital costs.

We are working with provinces and territories to allocate this funding.

The Government of Canada made a transformative investment of over $27 billion over five years, as part of Budget 2021 to build a Canada-wide early learning and Child Care system with provinces and territories. Combined with other investments including in Indigenous Early Learning and Child Care, up to $30 billion over five years will be provided in support of early learning and child care. Adding previous investments announced since 2015, this means that as of 2025-2026, a minimum of $9.2 billion will be provided every year – permanently – for Early Learning and Child Care and Indigenous Early Learning and Child Care.

To support the implementation of the Canada-wide early learning and child care system, Budget 2022 proposed to provide $625 million over four years, beginning in 2023-24, to Employment and Social Development Canada for an Early Learning and Child Care Infrastructure Fund.

This funding will enable provinces and territories to make further investments in child care infrastructure that supports greater inclusion in the Canada-wide ELCC system for underserved communities, such as: those in rural and remote regions, high cost/low-income urban neighbourhoods and communities with barriers to access, such as racialized, Indigenous, official language minority communities, and children, parents, and employees with disabilities. The Fund could also be used to support physical infrastructure for ELCC operators providing care during non-standard hours.

Only not-for-profit and public ELCC providers will be eligible for funding under the ELCC Infrastructure Fund. Not-for-profit and public early learning and child care providers often face unique challenges to access the capital funding necessary to build and/or maintain appropriate facilities, especially inclusive spaces that support families in underserved communities.

The cost of infrastructure development in the North is considerably higher than in the rest of Canada due to the high cost of supplies, a shorter construction season, skilled workforce shortages, and a lack of municipal infrastructure, among other challenges. In recognition of the unique infrastructure challenges faced by the territories, the ELCC Infrastructure Fund will ensure equitable funding for all provinces and territories, while also taking into consideration the unique infrastructure-related challenges faced by Northern communities.

The federal government has begun discussions with its provincial and territorial colleagues to negotiate amendments to the existing Canada-wide Early Learning and Child Care Agreements to provide the ELCC Infrastructure Fund. Details on funding allocations have been communicated to provinces and territories. The amendments will provide provinces and territories with additional funding to make further investments in child care infrastructure that support greater inclusion in the Canada-wide ELCC system for underserved communities.

Budget 2022 proposed to proceed with an asymmetrical agreement with the province of Quebec that will allow for Quebec to further enhance its child care system. Budget 2021 also provided early learning and child care infrastructure investments to support Indigenous communities.

Budget 2021 provided investments to support infrastructure for Indigenous communities, including:

$264 million over four years, starting in 2022–2023, and $24 million ongoing, to repair and renovate existing Indigenous early learning and child care centres, ensuring a safe and healthy environment for children and staff.

$420 million over three years, starting in 2023–2024, and $21 million ongoing, to build and maintain new centres in additional communities.

Funding Profile

Fiscal Year

2023-2024

2024-2025

2025-2026

2026-2027

Total

$75 million

$150 million

$200 million

$200 million

$625 million

IF PRESSED

The Government of Canada has a commitment to create 250,000 new regulated child care spaces across the country by March 2026.
In their Canada-wide agreements, provinces and territories have committed to exceeding that target.

Specific projects that will be funded under the Infrastructure Fund will be negotiated with provinces and territories.

This new funding will be part of an asymmetrical agreement with the province of Quebec that will allow for Quebec to further enhance its child care system.

Budget 2021 provided early learning and child care infrastructure investments to support Indigenous communities.