Ontario Childcare Grants and Funding for Licensed Operators: A Plain-Language Guide (2026)
Ontario licensed childcare operators are sitting in the middle of one of the most significant public investments in early learning in Canadian history. Billions of dollars are flowing through the CWELCC system and related provincial programs. And yet many supervisors — especially those running small to mid-sized centres — don't have a clear picture of what they can actually access, what counts as an eligible expense, and how the application process works for each program.
This guide covers the five main funding streams available to Ontario licensed childcare operators in 2026: what each program is, who qualifies, what it covers, and how to apply. It's written for supervisors and directors who carry purchasing authority and want a plain-language account of what the funding landscape actually looks like right now.
The Five Programs
Definition: Ontario childcare grants and funding programs are financial allocations provided by federal, provincial, and municipal governments to support licensed childcare operators. They fall into two broad categories: operating funding (ongoing support for the cost of running a program) and capital or special-purpose grants (one-time awards for specific infrastructure or workforce purposes). Unlike private grants, most Ontario childcare funding flows through the CWELCC system and is administered locally by Consolidated Municipal Service Managers (CMSMs) or District Social Services Administration Boards (DSSABs).
1. CWELCC Program Cost Allocation (Operating Funding)
Definition: CWELCC Program Cost Allocation is the ongoing operating funding that licensed childcare centres enrolled in the Canada-Wide Early Learning and Child Care (CWELCC) system receive from their local service manager. It is calculated on a cost-based model and covers eligible expenses directly attributable to the delivery of child care for CWELCC-eligible children. As of January 2025, Ontario moved to a cost-based funding approach, replacing the previous flat-rate model.
What it covers
The cost allocation is designed to cover the eligible operating costs of running a licensed child care program. Eligible costs are defined by three principles Ontario has established in its funding guidelines:
Attributable — the cost is directly or indirectly related to the delivery of child care for CWELCC-eligible children
Appropriate — the cost is necessary for the delivery of child care and sound and practical for the operating needs of the program
Reasonable — the cost aligns with the program's needs at fair market value
In practice, this covers most of what it costs to run a licensed centre: rent or mortgage payments, educator salaries, program supplies, food, professional development, and administrative software that supports program delivery. It does not cover non-operational items unrelated to child care delivery.
Software that supports ELECT-aligned program planning, developmental documentation, and quality assurance preparation — such as Root Skills — meets all three eligibility criteria. It is attributable to program delivery, appropriate for the professional obligations of a licensed programme, and reasonable in cost. At $79–$299/month, it is a small fraction of what most centres receive in their monthly operating allocation.
Who qualifies
Licensed childcare centres enrolled in CWELCC. Enrollment requires entering into a Child Care Services Agreement with your local service manager and committing to participate in the fee reduction model (working toward $10/day care).
How to apply
Contact your local Consolidated Municipal Service Manager (CMSM) or District Social Services Administration Board (DSSAB). Every region administers CWELCC differently, so your service manager is the starting point for any application or eligibility question. If you're already enrolled, your cost allocation is reviewed annually — contact your reporting analyst to understand your current allocation and what expenses have been pre-approved.
2. Wage Enhancement Grant (WEG)
Definition: Wage Enhancement Grant (WEG) is a provincial funding program that provides eligible Ontario licensed childcare operators with funding to increase the wages of qualifying early childhood educators and child care staff. In 2026, the grant supports a wage increase of up to $2 per hour for eligible staff, plus a 17.5% top-up for mandatory benefits. It is designed to address workforce retention and recruitment in the ECE sector by making educator compensation more competitive.
What it covers
The 2026 Wage Enhancement Grant provides up to $2 per hour in additional compensation for each eligible staff member, plus a 17.5% benefits contribution on top of that increase. This flows to the operator as funding, which is passed through directly to eligible staff wages.
Who qualifies (staff eligibility)
Staff must be:
A child care supervisor, RECE, home child care visitor, or a position otherwise counted in CCEYA adult-to-child ratios
Earning less than $31.81 per hour (2026 cap: $33.81/hr)
For supervisors specifically: the eligibility threshold in 2026 is under $31 per hour.
Who qualifies (centre eligibility)
Licensed child care centres serving children 6 years and older are eligible to apply. CWELCC enrollment is not required to access WEG — it is a standalone provincial grant.
How to apply
Applications are submitted through your local service manager. WEG applications typically open annually; timing varies by CMSM/DSSAB. Contact your local children's services office to confirm the current application window and required documentation.
A note on WEG and your operating budget
Wage Enhancement Grant funding flows in addition to your CWELCC cost allocation. It is not deducted from your operating allocation — it is supplementary. This matters for budget planning: centres that have maximized their WEG applications are effectively doubling the provincial support they're drawing down for eligible staff wages.
3. CWELCC Start-Up Grant
Definition: CWELCC Start-Up Grant is a one-time capital funding program that helps licensed childcare operators create new licensed spaces in Ontario. In 2025, Ontario committed $366.5 million to create 86,000 new licensed spaces by the end of 2026. Start-up grants fund the upfront costs of establishing a new childcare program — renovation, equipment, furniture, and initial operational costs — for operators who commit to CWELCC participation and reduced parent fees.
What it covers
Start-up grants typically cover renovation and fit-out costs, equipment and furniture, licensing fees, and initial operating costs associated with opening a new childcare space. Specific amounts and eligible expenses vary by service area.
Who qualifies
Operators planning to open new licensed childcare spaces in Ontario and willing to enroll in CWELCC. Eligibility criteria vary by region based on local planning priorities and available space allocations.
How to apply
You do not apply directly to the province. Every start-up grant application goes through your local service manager. CMSMs and DSSABs open intake windows at different times throughout the year based on local planning cycles — there is no single provincial application period.
This is one of the most important things to understand about Ontario childcare grants: funding availability depends on where you open, not just what you open. Two identical childcare projects in different municipalities can receive very different responses. Contact your local children's services office early in your planning process to understand whether there is demand and space allocation available in your area.
4. RISE — Resources for Inclusion Support in Early Learning Settings
Definition: RISE (Resources for Inclusion Support in Early Learning Settings) is a provincial funding program that supports Ontario licensed childcare operators in including children with varying abilities in their programs. RISE funding includes classroom assistant funding, training, and access to Inclusion Support Services Early Interventionists. It is not a general operating grant — it is specifically tied to classrooms actively supporting children with identified inclusion needs.
What it covers
RISE funding includes:
Classroom assistant funding to support specific children with varying abilities
Training resources for educators supporting inclusion
Access to Early Interventionist expertise and support
Who qualifies
To access classroom assistant funding, the classroom must generally meet conditions including: active involvement of an Inclusion Support Services Early Interventionist, a classroom inclusion plan in place for at least 30 working days, endorsement from the Early Interventionist, and classroom operating capacity at 80% or above.
How to apply
RISE is managed regionally. Connect with your local Inclusion Support Services Early Interventionist — they are the entry point into the RISE program. Applications are submitted through the RISE portal within the Ontario Child Care Management System (OCCMS). If you're unsure who your regional Early Interventionist is, contact your local CMSM or DSSAB.
5. Liam Riazati Memorial Fund (Child Care Barrier Grant)
Definition: Liam Riazati Memorial Fund is a $20 million Ontario provincial fund announced in December 2025 to install vehicle-impact safety barriers at licensed childcare centres. Named after a 17-month-old child who died after a vehicle struck his Richmond Hill daycare in September 2025, the fund supports community-based centres operating in retail spaces, places of worship, residential dwellings, and other standalone public buildings where vehicle barriers would provide meaningful protection.
What it covers
Installation of concrete or equivalent vehicle-impact safety barriers at the perimeter of licensed childcare facilities in qualifying locations.
Who qualifies
Community-based licensed childcare operators operating in non-purpose-built settings: retail plazas, places of worship, standalone commercial buildings, or residential buildings. The fund targets settings where vehicle access presents a meaningful risk.
How to apply
Applications were expected to open in early 2026 through the Ministry of Education. Detailed application instructions, forms, and deadlines are communicated directly to licensed child care operators by the Ministry. If you haven't received communication about the Liam Riazati Memorial Fund and believe your centre qualifies, contact your local CMSM or the Ministry of Education's Early Years and Child Care Division directly.
How These Programs Work Together
The five programs above are not mutually exclusive — they address different parts of what it costs to run a licensed childcare centre. A typical Ontario licensed centre enrolled in CWELCC might be drawing on several of these simultaneously:
The CWELCC operating allocation covers the ongoing costs of running the program: rent, staff, supplies, and administrative tools. The Wage Enhancement Grant supplements educator compensation beyond what the base allocation funds. RISE supports specific classrooms where children with varying abilities are being included. The Start-Up Grant is relevant to any operator expanding into new spaces. And the Liam Riazati Memorial Fund applies to a specific safety need that many community-based centres didn't previously have funding to address.
The practical implication: many supervisors are leaving money on the table not because they're ineligible, but because they don't have a complete picture of what their centre qualifies for and when to apply.
What Counts as an Eligible Expense Under CWELCC?
This is the question that generates the most confusion — and where getting clarity with your reporting analyst pays off.
The three-principle framework (Attributable, Appropriate, Reasonable) is deliberately broad. It is designed to cover the genuine operating costs of running a high-quality licensed childcare program, not a prescriptive list of pre-approved items. In practice, what this means:
Typically eligible: rent and occupancy costs, educator wages, program supplies and materials, food for children, professional development and training, administrative tools and software that support program delivery, insurance, and other standard operating expenses.
Typically not eligible: personal expenses unrelated to child care delivery, major capital improvements beyond what's covered by specific capital programs, non-operational items (a commonly cited example from the guidelines: a coffee machine for staff that has no relationship to child care delivery).
The software question specifically: Software that supports ELECT planning, developmental documentation, and quality assurance preparation is directly attributable to program delivery, appropriate for a licensed childcare programme's professional obligations, and at typical pricing ranges is clearly reasonable. If your centre is using Word documents and paper binders for weekly planning and paying a separate subscription for parent communication, you may already be spending more on patchwork tools than a dedicated ECE workflow tool would cost — and only one of those qualifies for your operating allocation.
If you are uncertain about whether a specific expense is eligible, contact your reporting analyst directly. The guidelines provide the framework; your analyst applies it to your centre's specific situation.
Frequently Asked Questions
What grants are available for licensed daycare operators in Ontario? In 2026, Ontario licensed childcare operators can access five main programs: the CWELCC Program Cost Allocation (ongoing operating funding), the Wage Enhancement Grant (up to $2/hour for eligible ECE staff), the CWELCC Start-Up Grant (for creating new licensed spaces), RISE (inclusion support funding for classrooms serving children with varying abilities), and the Liam Riazati Memorial Fund (vehicle-impact safety barriers for community-based centres).
How do I apply for CWELCC funding in Ontario? You apply through your local Consolidated Municipal Service Manager (CMSM) or District Social Services Administration Board (DSSAB) — not directly to the province. Contact your local children's services office to confirm your enrolment status, your current allocations, and any upcoming application windows for specific programs.
What is the Wage Enhancement Grant and who qualifies? The Wage Enhancement Grant (WEG) is a provincial program that funds wage increases of up to $2 per hour for eligible early childhood educators and child care staff. In 2026, eligible staff earn under $31.81/hour (supervisors under $31/hour). The grant also includes a 17.5% top-up for mandatory benefits. It is available to licensed centres regardless of CWELCC enrolment and applications are submitted through your local service manager.
Can CWELCC operating funding be used to pay for software? Generally yes, if the software meets the three CWELCC eligibility principles: attributable to child care delivery, appropriate for program operations, and reasonable in cost. Software that supports ELECT-aligned program planning, developmental documentation, and quality assurance preparation clearly meets these criteria. Confirm the specific expense with your reporting analyst.
What is the RISE program and how does my centre apply? RISE (Resources for Inclusion Support in Early Learning Settings) provides classroom assistant funding and training for Ontario licensed childcare centres supporting children with varying abilities. The entry point is your regional Inclusion Support Services Early Interventionist. Applications are made through the RISE portal in the Ontario Child Care Management System (OCCMS). Contact your local CMSM or DSSAB if you are unsure who your regional Early Interventionist is.
What is the Liam Riazati Memorial Fund? The Liam Riazati Memorial Fund is a $20 million provincial fund announced in December 2025 to install vehicle-impact safety barriers at licensed childcare centres. It targets community-based centres operating in retail plazas, places of worship, and other standalone public buildings. Applications were expected to open in early 2026 through the Ministry of Education.
Do I have to be enrolled in CWELCC to access all of these programs? No. The Wage Enhancement Grant and RISE are available to licensed centres independently of CWELCC enrollment. The CWELCC Program Cost Allocation and Start-Up Grant require CWELCC participation. The Liam Riazati Memorial Fund is available to licensed operators regardless of CWELCC status.
Is there a single place to apply for all Ontario childcare funding? No. Ontario's childcare funding is administered locally through CMSMs and DSSABs, with intake timing and specific processes varying by region. The Ministry of Education sets the framework and guidelines; your local service system manager implements them. Your first call for any funding question should be to your local children's services office.
The Bottom Line
Ontario's investment in licensed childcare is substantial and continues to grow. But accessing that investment requires knowing what programs exist, when their intake windows open, and which ones your centre qualifies for — information that is distributed across service managers, ministry guidelines, and regional processes.
The supervisors who get the most out of these programs are the ones who treat their service manager relationship as an ongoing conversation rather than a once-a-year form submission. If you know your reporting analyst by name, know when your next reporting cycle is, and have a clear picture of your centre's cost allocation, you're in a position to make confident decisions about operating expenses — including software, professional development, and other tools that directly support your programme's quality.
Root Skills is designed specifically for Ontario ECE supervisors — ELECT-aligned planning, developmental observation, Quick Guide for child-specific insight, and AQI readiness for Toronto centres. At $79–$299/month, it's the kind of operating expense that belongs in your cost allocation — not in the "nice to have if we have budget left" column.
14-day free trial at rootskills.ca. No credit card required.
Sources: Ontario Ministry of Education Child Care and Early Years Funding Guidelines 2026; CWELCC Cost-Based Funding Guideline (Ministry of Education); York Region RISE Handbook November 2025; City of Ottawa CWELCC Cost-Based Funding Approach; Ontario Newsroom — Liam Riazati Memorial Fund (December 2025); Canada-Ontario Early Learning and Child Care Agreement extension announcement (December 2025); City of Ottawa — Wage Enhancement Grant and CWELCC Workforce Compensation. Feature eligibility details should be confirmed with your local CMSM or DSSAB.