Running a licensed child care centre is expensive. Staff wages, rent, food, and insurance all rise faster than parent fees can. Governments across Canada fund child care operating and fee reduction programs. This keeps child care affordable for families and helps providers cover real operating costs. One example is Child Care Operating Funding (CCOF) Base Funding in British Columbia. It shows how similar models work across Canada.
Most provinces use a two-part funding structure. This is part of the Canada-wide Early Learning and Child Care (CWELCC) agreements:
Each province has its own rules, but the goal is the same. Governments help cover your operating costs so you can charge families less. This supports quality care and fair wages.
In B.C., Child Care Operating Funding (CCOF) Base Funding is the base of the system. It is delivered through ChildCareBC.
What it’s for
Who is eligible
Providers who do not get CCOF Base Funding cannot join fee reduction programs.
Key conditions
After a provider gets base operating funding, they can apply for a fee reduction initiative.
This program lowers parent fees by paying providers a monthly amount per enrolled child. The amount depends on age group and care type.
Monthly funding examples
Eligibility requirements
If you join, you agree not to charge parents more than the approved reduced fee.
You can use tools like GrantHub to compare child care programs by province, licence type, and age group.
The names may differ, but the structure is similar in other provinces.
In Newfoundland and Labrador, licensed centres lower their daily parent fees. They get a variable operating grant to help cover business costs.
Program focus
This is similar to CCOF. Providers lower parent fees and receive steady public funding.
Some provinces offer extra operating funding on top of base grants.
In Saskatchewan, the Inclusion Program gives up to $24,000 to help child care providers support children with diverse needs.
What it covers
This funding adds to base operating grants. It does not replace them.
Rules differ by province, but most programs allow funding for:
Major renovations or expansions usually need separate capital funding.
1. Raising fees without approval
Fee caps are strict. Even small increases can lead to clawbacks or removal from the program.
2. Assuming funding is automatic
Most programs need annual confirmation, reporting, or re-enrolment.
3. Mixing up operating and capital funding
Operating grants do not usually cover renovations or expansions.
4. Not tracking enrolment changes
Funding amounts are often tied to spaces filled, not licensed capacity.
Q: Is Child Care Operating Funding a grant or a subsidy?
It works like an operating grant paid to providers, but it comes with rules about parent fees. You get funding in exchange for keeping fees affordable.
Q: Can I opt out of fee reduction and keep operating funding?
In many provinces, operating funding is tied to fee policies. In B.C., providers must have CCOF Base Funding to join fee reduction programs.
Q: Is this funding taxable?
Operating funding is business revenue and is usually taxable. Check with your accountant.
Q: Can I stack operating funding with other grants?
Yes, but you must not count the same expense twice. See also: How to stack grants and loans without violating funding rules.
Q: Does this apply to home-based child care?
Yes. Licensed family and in-home providers are eligible under many provincial programs, including CCOF in B.C.
Child care operating and fee reduction funding is a system that changes by province, licence type, and age group served. GrantHub tracks hundreds of active child care and operating grant programs across Canada. This helps you check which ones fit your centre today and which ones you can plan for next year.
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