Federal Government Tables Budget 2026

Overview

This afternoon, the Hon. François-Philippe Champagne, Minister of Finance and National Revenue, introduced the 2026 Federal Budget – Masters of Our Destiny – a clear call-out to Canada’s push for enhancing national resilience.

While the government was quick to note that the budget was not a reaction to the American midterms, it was clearly influenced by ongoing trade and diplomatic disputes between the United States and Canada. This budget aligns closely with the Prime Minister’s stated priorities from his mandate letters to ministers, especially around diversifying trade and increasing Canada’s sovereign capabilities.

Divided into six chapters, the budget is framed as ambitious but fiscally responsible, Budget 2026 is tightly aligned to the Prime Minister’s political priorities: sovereignty, affordability, housing, climate change, and economic growth, positioned alongside an efficient government.

These are all largely geared towards economic renewal: reducing red tape, faster project approvals, capital investments, and affordability measures. These priorities speak to a government eager to show voters that positive change for their wallets is coming, and to businesses that they are committed to improving the investment climate.

Key Budget Forecasts

Budget 2026 forecasts a $62.3 billion deficit for the 2026-2027 fiscal year. The government intends to continue to run a deficit before lowering gradually to $52.9 billion in 2030-31.

Compared to the Spring Economic Statement, the deficit is projected to be $27.5 billion lower in 2025-2026 and $34 billion lower cumulatively over the next six years. New Budget 2026 measures (by chapter) are costed at roughly $15.2 billion in 2026-27, rising to the $30–34 billion range annually in later years; combined with other post-Spring Economic Update policy actions, total fiscal measures provide about $151 billion in net support to households, businesses and other governments from 2026-27 to 2030-31.

The medium-term outlook has weakened. Canada’s real GDP is now projected to grow 1 per cent annually in 2026 and 1.7 per cent 2027, though the budget notes this is the second-fastest growth pace in the G7. Real GDP growth is expected to hit 2 per cent in 2028 and 2029.

Like Budget 2025, Budget 2026 rests on two fiscal anchors:

• Continuing to balance day-to-day operating spending with revenues by 2027-28 onward, a year ahead of the fiscal anchor commitment announced in Budget 2025, and
• Maintaining a declining deficit-to-GDP ratio to ensure disciplined fiscal management, keeping the deficit-to-GDP ratio on a declining path.

In addition to the two fiscal anchors, Budget 2026 commits to enabling $1 trillion in total capital investment over the next five years, including $500 billion in new private sector investment.

Federal debt-to-GDP is projected to stay roughly flat, in the 39.9%–40.4% range through 2030-31. On an all-levels-of-government basis, Canada’s net debt-to-GDP ratio is 9.3%, versus a G7 average (excluding Canada) of 101.3%, and the federal deficit-to-GDP and net debt-to-GDP ratios are described as the lowest in the G7.

Read More

• Budget 2026 Documents
• Budget 2026 News Release
• Minister of Finance Speech

Analysis

This afternoon, the Hon. François-Philippe Champagne, Minister of Finance and National Revenue, introduced the 2026 Federal Budget, entitled Masters of Our Destiny (French: Maîtres chez nous). This is Budget 2026, the second budget delivered by Prime Minister Mark Carney’s government.

Like his first budget, Prime Minister Carney is betting big on economic transformation to meet his aspirational objectives for improving Canada’s economic productivity and national security posture. The Prime Minister is aiming to push against sluggish growth and global uncertainty by further decoupling the country from the U.S. economy and investing in local growth, business development, infrastructure, and sovereignty initiatives. Where the last budget sought to catalyze Canada’s economy via tax incentives for business, housing and local infrastructure, this budget seeks to go further on foreign direct investment opportunities and offering Canadians support through affordability measures coupled with a suite of consumer-friendly pilot projects and legislative changes. The budget also highlights a key deliverable being achieved in 2027-28 by balancing the operating spending a year early through reduction of the public service and efficiencies in government.

Billed as a budget focused on sovereignty first, the Prime Minister has altered his definition of sovereignty to go beyond the traditional scope of national defence, and into a message around economic renewal. People and culture funding, including Francophone and Indigenous projects, have taken a broader role within this sovereignty frame. This serves two functions: it capitalizes on this summer’s breakdown of trade talks with the United States over Quebec language rights, showing Canada’s French-speakers, he is willing to support them financially and politically. He also is linking Indigenous nations, long concerned about the growth of Canada’s military presence in the North, directly to the economic growth an expanded Northern military presence will bring.

The greatest challenge facing the Prime Minister following this budget will be the long-term economic impacts from tariffs, uncertainty around growth, and the continued cost increases of debt servicing. Changes to the trade and political status quo in the United States will impact Canada’s long-term economic outlook, while continued conflict in the Strait of Hormuz and prolonged conflict in Ukraine may continue to slow GDP growth as oil prices fluctuate. Though the federal government has maintained a conservative economic outlook, continued global shocks are likely to weaken the overall business environment – impacting how the Prime Minister delivers on his ambitious goals. One way to reduce duplication is by streamlining delivery of federal financing by consolidating Export Development Canada (EDC) and Business Development Bank of Canada (BDC) into a single entity. Similarly, Canadians will be the ultimate litmus test that determines if this budget will positively impact their pocketbooks. The Prime Minister’s focus on affordability in this budget will help, but voters may need to see more.

Despite early signals the government may seek to raise immigration levels, this did not come to fruition and the government continued to maintain the status quo and slight lower the amount of immigration allowed over the next three years. With public opinion on immigration tied largely to pressures on housing affordability and social services access, the government instead sought to operate within the existing numbers and create more focused policies on economic immigrants. Those details will be delivered by the government when the Minister of Immigration, Refugees and Citizenship, tables the 2026 report in Parliament.

Separately, while the government looks to focus its message on major projects and investments, the Prime Minister has continued to show that he is not afraid to force through efficiencies within the public service through cuts, lowering operational expenses, and reducing the deficit. Developing another crown corporation for the Canada Strong Fund also highlights the Prime Minister’s frustration with the public service’s inability to deliver on his priorities fast enough. Expect him to continue to use crown corporations as a tool to circumnavigate bureaucracy and bring forward services faster.

Whats Next? 

The government will spend the next few Parliamentary days debating the budget and will then table the Budget Implementation Act No.1 with the intention for passage before the holiday break. This will be the first of two Implementation Acts the government will introduce to enact the contents of the budget. These Acts will become the top legislative priorities for the government.

As has been the case in previous budgets following their tabling, cabinet ministers will disperse across the country and make several “echo” announcements of funding both previously announced and included in the budget.

Key Commitments

Growing Canada’s Economy 

• Proposes to provide $1 billion over six years, starting in 2028-29, to the Strategic Response Fund. 
• Announces the government’s intention to bring forward legislation in the coming months to establish the Canada Strong Fund as an arm’s-length and standalone Crown corporation. In the interim period, the Canada Strong Fund will be incorporated as a wholly owned subsidiary of the Canada Development Investment Corporation, with its own dedicated Board of Directors and Chief Executive Officer. 
• Introduces the Canada Growth Incentive to help high-potential businesses attract investment through a new tax exemption, providing $715 million in tax relief over four years, starting in 2027-28. 
• Further expands the Scientific Research and Experimental Development (SR&ED) tax incentive program to include certain commercialisation expenses. This measure is expected to provide support of $930 million over five years, with $235 million ongoing.  
• Proposes to provide $181.4 million over four years, starting in 2027-28, $50.4 million in future years, and $40.4 million ongoing to expand Invest in Canada to add specialised financial sector expertise and establish its presence in key global markets. 
• Proposes to provide $187.4 million over five years, beginning in 2026-27, and $24.2 million in future years to launch and operate a major projects management entity and begin support for the Mackenzie Valley Highway and the Taltson Hydro Expansion project. Budget 2026 proposes to fully fund the construction and certain maintenance costs of the Mackenzie Valley Highway. 
• Proposes to provide $55.3 million over two years, starting in 2026-27, to Transport Canada to advance digital trade processes. 

Affordability Measures 

• Proposes to enhance the Canada Groceries and Essentials Benefit again through the 2027 Canada Groceries and Essentials Benefit Supplement, which would provide a one-time 50% increase for the 2026-27 benefit year, delivered in early 2027. 
• Provide $610.3 million over four years, starting in 2027-28, $118.1 million in 2031-32, and $117 million ongoing to ensure that Nutrition North Canada can maintain and enhance these essential supports. 
• Proposes to introduce the Build Canada Workers Benefit, building on and enhancing the existing Canada Workers Benefit. The new benefit would lower the minimum earnings threshold from $3,000 to $500, and from $1,150 to $200 for the disability supplement.  
  • It would also increase the maximum benefit to $1,859 for single individuals without children and $3,143 for families, up from $1,709 and $2,943 respectively under the existing benefit. 
• Proposes to reduce advance payments by half for the 2027 taxation year, beginning in July 2027, and eliminate advance payments starting with the 2028 taxation year.  
  • Workers who are entitled to the Build Canada Workers Benefit would instead receive their full entitlement after filing their tax return for the year. 
• Makes the Canada Caregiver Credit fully refundable, providing $845 million in additional support over four years, starting in 2027-28, and $245 million per year ongoing. 

Changing How Government Operates 

• Launch a transition process including required legislation to create a single federal development bank by bringing together the Business Development Bank of Canada and Export Development Canada. 
• Move responsibility for the Canada Infrastructure Bank (CIB) to the Minister of Finance, focus the CIB’s mandate on providing loans and loan guarantees to support major investments in Canadian infrastructure, and consolidate the Indigenous Loan Guarantee Program within the CIB. 
• Amend the Income Tax Act to increase the instalment thresholds, which have not changed since 2008, to $7,500 and index them to inflation. 
• Make other tax changes, like: 
  • Make tax filing simpler and more accurate by setting May 15 as the single due date for filing returns and paying taxes owing 
  • Extend the timeframe to file a notice of objection and remove the need for taxpayers to request an extension of time 
  • Increase the $100,000 foreign property threshold for filing a Foreign Income 
  • Verification Statement 
  • Simplify the Northern Residents Deductions 
  • Permanently allowing a qualifying family member to open a Registered Disability Savings Plan 
  • Simplify tax relief for apprentice vehicle mechanics who are eligible for tax relief on the cost of their tools. 
  • Remove an unnecessary rule that reduces the amount of travel expenses that commission employees can deduct for work 
  • Remove the $1,000 cap on the amount of work expenses that employed artists can deduct in a year 
• Government’s intention to assess and integrate competition considerations into federal business support programs, starting with the Strategic Response Fund. 
• Expand data portability rights to additional sectors, including telecommunications and air transportation. These rights would be implemented following the establishment of the new data portability framework under the Protecting Privacy and Consumer Data Act 
• Strengthen Competition Bureau investigations: Make it easier for federal institutions to share relevant information with the Competition Bureau when it is investigating possible anti-competitive conduct 
• Address restrictions on lower prices: Consult on potential reforms to address practices that prevent retailers from offering or advertising lower prices 
• Remove anti-competitive property controls: Work with provinces and territories to end anti-competitive property controls that restrict competition in the retail grocery sector, building on Manitoba’s new model for restrictions. 
• Limit non-compete agreements: Work with provinces and territories to expand restrictions on non-compete agreements in employment contracts 
• Budget 2026 proposes to introduce legislative amendments to increase the Canada Account limit and modernise its governance framework 
• Budget 2026 announces the government’s intention to amend the Canadian Commercial Corporation Act, Export Development Act, and Financial Administration Act to make the CCC a subsidiary of Export Development Canada 

Housing and Infrastructure 

• $1.8 billion over four years, starting in 2027-28, and $3.2 billion in future years to establish a new Integrated Supports Fund delivered through Build Canada Homes 
• An additional $3.6 billion over four years, starting in 2027-28, and $6.4 billion in future years, through Build Canada Homes to build new supportive and transitional housing across Canada. 
• $2 billion over two years, starting in 2027-28, for the Health Infrastructure Fund. Facilities funded will provide care before people reach a crisis point, helping address the mental health and substance use challenges. 
• $2.1 billion over three years, beginning in 2028-29, and $4.4 billion in future years to Housing, Infrastructure and Communities Canada to renew the Reaching Home initiative and the Veterans Homelessness Program for an additional 10 years 
• Renew the Canada Housing Benefit for 10 years ($1.7 billion over 3 years, starting in 2028-29, and $3.9 billion in future years). 
• An additional $13 billion over ten years starting in 2028-29, to boost the capital of Build Canada Homes and supercharge non-market housing across this country. 
• $1.5 billion over four years, starting in 2027-28, and $387.4 million in future years to prepare federal lands for housing. 
• Budget 2026 proposes $100 million over three years, starting in 2027-28, toward a partnership with the Federation of Canadian Municipalities to support municipal e-permitting and the adoption of artificial intelligence, enabling more efficient and effective review and approval processes, to get homes built faster 
• $300 million over three years, starting in 2028-29, and $200 million in future years, to Innovation, Science and Economic Development Canada for the Strategic Response Fund to build and expand industrial capacity. 
• New targeted investments to improve the efficiency of the homebuilding sector, accelerate home construction, and increase housing supply, including: $67.7 million over four years, starting in 2027-28, and $101.2 million in future years to modernise housing data and establish common standards for modern methods of construction. 
• Extends the ban on foreign purchases of existing residential properties for two years, to January 1, 2029, while exempting new residential properties. 
• Amends the Canada Revenue Agency Act to provide the Canada Revenue Agency (CRA) with the authority to enter into agreements with mortgage lenders and mortgage insurers to provide an income verification service. 
• Proposes to amend mortgage insurance rules to raise the home price limit for optional mortgage insurance from $1 million to $1.5 million and permit 30-year amortisations for these insured mortgages, provided that at least one borrower is a first-time home buyer or the home is newly built. 

Defence, Security, and Policing 

• $2.3 billion over five years, starting in 2027-28, on a cash basis to the Department of National Defence for the Defence Drone Initiative 
• $25 million over two years, starting in 2026-27, to the Department of National Defence for the Canadian Forces Morale and Welfare Services 
• $7.6 billion over five years, starting in 2026-27, on a cash basis to the Department of National Defence and Global Affairs Canada for the extension and expansion of Operation REASSURANCE 
• $3 million in 2026-27 to the Department of National Defence to support the Wainwright Military Family Resource Centre 
• Direct up to $2.7 billion over five years, starting in 2026-27 from previously announced funding, including toward the following: 
  • Advance Phase 2 of the Canadian Quantum Champions Program to support leading Canadian quantum companies in scaling up the development of industrial-scale quantum computers capable of solving real-world problems across industries, including in cryptography, advanced materials, signal processing, and pattern recognition.  
  • Expand the Launch the North initiative to establish a sovereign, medium-lift Canadian space launch capability through the development of domestic launch vehicles, a national rocket propulsion ecosystem, and dedicated Government of Canada launch and testing infrastructure managed by the Department of National Defence.  
  • Further develop Canadian space technology by helping firms scale up development and capacity for launch in space missions 
  • Strengthen cross-cutting funding tools and enablers of the defence industry. This includes extending initiatives such as BOREALIS, Defence Industry Assist, export promotion, and the Regional Defence Investment Initiative 
  • Recapitalise the Canadian Defence Industry Resilience Program 
  • Secure critical inputs for Canadian defence production. This includes funding to complete the construction of a General Dynamics Ordnance and Tactical Systems production facility in Québec 
  • Fully operationalise the National Research Council’s drone innovation hubs and enable the Department of National Defence to create competitions for industry to advance technologies for uncrewed vehicles and air systems. 
• $61.9 million over four years, starting in 2027-28, and $109.2 million in future years to Global Affairs Canada to support Canada’s anticipated participation in the EU’s Ukraine 
• Support Loan procurement opportunities. 
• $6.0 billion over 10 years, starting in 2027-28, on a cash basis, and $579.5 million ongoing to CSIS to expand its presence and capabilities. 
• Establish the new Digital Safety and Data Protection Commission of Canada to enforce the Safe Social Media Act 
• $8.4 million over three years, starting in 2027-28, to Public Safety Canada to support the Canadian Centre for Child Protection’s ongoing work in child protection. 
• $64 million over four years, starting in 2027-28, and $9 million ongoing to Public Safety Canada to support the activities of the Canada Centre for Community Engagement and Prevention of Violence, including $56 million over four years, starting in 2027-28, and $7 million ongoing to expand the Community Resilience Fund. 
• $6 million over three years, starting in 2027-28, to Justice Canada to strengthen the Office of the Federal Ombudsperson for Victims of Crime and support its work reviewing complaints, identifying systemic issues, and advancing victims’ rights. 
• $30.9 million over three years, starting in 2027-28, to Justice Canada to ensure the continued availability of Intensive Rehabilitative Custody and Supervision services, which provide treatment and rehabilitation for eligible young violent offenders and help reduce repeat offending.  
• $12 million over three years, starting in 2027-28, to Justice Canada to expand support for Child Advocacy Centres 
• Introduce a legislated Multi-Sector Anti-Fraud Framework, as a cornerstone of the National Anti-Fraud Strategy 
• Improve information sharing between FINTRAC and OSFI, ensuring the appropriate safeguards for consumer information, and expand FINTRAC’s ability to obtain supervisory information from regulated entities. 
• Expand anti-money laundering requirements to cover higher-risk gambling activities, including certain pari-mutuel betting on horse racing, while exempting lower-risk activities 
• Extend the AML/ATF registration regime, including to dealers in precious metals and stones, after engaging with industry  
• Help more government authorities with regulatory and enforcement responsibilities better detect and address the illicit use of shell companies and other complex corporate ownership structures by giving them access to non-public beneficial ownership registry information. 
• Strengthen the government’s ability to dissolve corporations being used for fraudulent purposes. 
• Bring forward legislation to strengthen investigative tools targeting organised criminals, modernise Criminal Code offences to address evolving forms of financial crime and strengthen penalties 
• Amend the Bank Act to provide the Minister of Finance with the authority to order the divestiture of investments held in Canadian businesses by banks if national security concerns emerge. 
• $182.4 million over four years, starting in 2027-28, to the Canada Revenue Agency to strengthen its capabilities to investigate tax evasion 

Disaster Relief 

• $2.5 billion in financing to De Havilland Canada delivered by Export Development Canada to help the company increase its production capacity of waterbombers at its facilities in Alberta.
• Introduce legislation establishing the Canadian Earthquake Insurance Facility. Financed through nominal levies on insurers, the Facility would provide emergency funding of up to $50 billion to the property and casualty insurance sector

Artificial Intelligence 

• Support Canada’s continued participation in the Global Partnership on Artificial Intelligence via the International Centre of Expertise in Montréal on Artificial Intelligence. 
• Establish a Government Transformation Fund that will accelerate transformative Information Technology (IT) projects 

Airports 

• Provides $37.6 million over three years, starting in 2026-27, to ensure a strong return for Canadians by completing due diligence, developing the concession framework, obtaining specialised commercial and legal advice, and completing a competitive process to select the operator by early 2029.
• Proposes to introduce legislation necessary to implement and establish the operating concessions.
• Announces the government’s intention to pursue additional measures—supported by concession proceeds—to improve the experience for travellers. These will prioritise regional connectivity, ensure air travel is affordable, and strengthen the governance and oversight of Canada’s airports.
• Proposes to provide $4.3 million over four years, starting in 2026-27, to Transport Canada to develop a Traveller Biometrics Strategy.

Natural Resource Extraction 

• Renew the Canadian Critical Minerals Strategy, providing Natural Resources Canada with $424.4 million over four years, starting in 2027-28
• Extend the Mineral Exploration Tax Credit and Critical Mineral Exploration Tax Credit for an additional five years, until March 31, 2032
• Expand the Critical Mineral Exploration Tax Credit to include antimony.
• Align the tax treatment of helium exploration and development expenditures, as well as expenditures incurred to acquire helium resource properties, with that of the conventional oil and gas sector
• $500 million over six years, starting in 2027-28, to Natural Resources Canada, to strengthen fibre supply chains and support provinces, territories, Indigenous partners, and industry in advancing forest management and stewardship, and deploying new technologies and practices
• $2 billion over six years, starting in 2027-28, to Natural Resources Canada to help businesses in the forest sector modernise facilities and equipment
• $4 billion over six years, starting in 2027-28, on a cash basis, to Export Development Canada through the Canada Account to support a new Forestry Sector Accelerator

Cleantech, Energy, and Renewables 

• Provides $6 billion over six years, starting in 2028-29, earmarked to support the deployment of emerging electricity generation technologies. 
• Extends the Clean Technology and Clean Electricity investment tax credits to the end of 2040. For the Clean Technology investment tax credit, the phase-out to 15% would occur in 2040 rather than 2034. 
• Expands eligibility for the Clean Electricity investment tax credit to the highest-voltage intra-provincial electricity transmission lines in each province, for property acquired and available for use on or after Budget Day. 
• Provides nearly $4 billion over 10 years, starting in 2027-28. This funding will support electricity infrastructure expansion, renewable energy, and priority electricity sector projects across Canada, including new funding for the Smart Renewables and Electrification Pathways Program. 
• Provides $37 million in 2027-28 to support robust cost-benefit analysis of proposed interties and inform cross-border cost allocation discussions. 
• Provides $26.4 million over 10 years (on a cash basis) to Natural Resources Canada for data and modelling capacity to improve system planning and help guide investments where they will be most beneficial.  
• Provides $22.9 million over five years to Environment and Climate Change Canada to update the Clean Electricity Regulations and to develop equivalency agreements with provinces and territories where appropriate. 
• Provides $1.6 billion over 10 years, starting in 2027-28. This includes $713.8 million for renewable energy and capacity-building projects that help Indigenous, rural, and remote communities transition from diesel and fossil fuels to renewable energy sources, and $929.1 million to replace and upgrade aging electricity infrastructure in northern communities.  
• $261 million over five years, starting in 2027-28, and $14 million ongoing, to Natural Resources Canada to develop nuclear supply chains, support research and development, and advance research reactor capacity and readiness 
• $127 million over five years, starting in 2027-28, and $1 million ongoing, to Atomic Energy of Canada Limited for research infrastructure, research and development, workforce development, and other strategic nuclear capabilities. 
• $131.1 million over five years, starting in 2027-28, to the Canadian Nuclear Safety Commission (CNSC) to prepare for new nuclear projects and become the sole federal regulator for nuclear energy projects. Of this amount, $18.3 million would be cost-recovered. 
• $14.4 million over five years, starting in 2027-28, and $3.1 million ongoing, to Global Affairs Canada, for nuclear export promotion and government-to government engagement. 
• $3.3 million over five years, starting in 2027-28, to Health Canada to support the CNSC with expertise on the human health impacts of radiation exposure. 

Culture 

• $300 million in 2027-28 for a suite of programs that will support the stories, spaces, and experiences. 
• $10 million in 2027-28 for the Building Communities through Arts and Heritage program and $15 million for the Canada Arts Presentation Fund. 
• $1.5 billion over nine years through the Build Communities Strong Fund to support the construction, expansion, retrofit, and rehabilitation of community recreational facilities and ice rinks across Canada. 
• The government intends to consult with Canadians and the cultural sector on a new Canada Creative Credit 
• Renews the Canada Strong Pass for another summer while permanently making admission to Canada’s national museums free year-round for children and youth under 25 
• $783.1 million over five years, starting in 2026-27, to support Canada’s national museums, the National Battlefields Commission, the National Arts Centre, and Library and Archives Canada. 
• $60 million over four years, starting in 2027-28 to the National Gallery of Canada 
• Establishes a free national digital collection. Launching with at least 200 titles in 2027-28, the collection will grow to more than 2,000 titles. 
• Budget 2026 also proposes to provide $20 million over four years, starting in 2027-28, and $5 million ongoing to renew the Canada Book Fund. 
• Budget 2026 proposes to provide an additional $300 million over two years, starting in 2026-27, to CBC/Radio-Canada. 
• $134 million over four years, starting in 2027-28, and $41 million ongoing to Canadian Heritage for the Local Journalism Initiative. 
• Extends the Canadian Journalism Labour Tax Credit to qualifying private audio and audiovisual news organisations. 
• Renew the temporarily enhanced 35% credit rate for print journalism for two more years, until December 31, 2028 
• $393.2 million over three years, starting in 2027-28, on a cash basis, to 10 departments and agencies to support the 2028 Francophonie Summit. 
• $15.9 million over four years, starting in 2027-28, and $2.1 million ongoing to Veterans Affairs Canada to acquire, remediate, and operate the National Field of Honour 

Indigenous Communities 

• Launches a First Nations On-Reserve Infrastructure Program and proposes to support the new program with $18.5 billion over 10 years, starting in 2027-28. 
• $226.7 million over 10 years, starting in 2027-28, to the Atlantic First Nations Water Authority 
• $11 billion over 10 years, starting in 2027-28. 
• $1.7 billion over five years, starting in 2027-28, for housing in First Nations communities on reserve. 
• $150 million over five years, starting in 2027-28, for the Yänonhchia’ Revolving Housing Finance Fund 
• $7.5 million over five years, starting in 2027-28, for a Surety-Bonding Pilot to test a model for helping First Nations contractors overcome barriers to bidding on large construction contracts. 
• $500 million over 10 years, starting in 2027-28, for a Monetisation Pilot to test a First Nations-led model for financing infrastructure projects 
• $5.8 billion over five years, starting in 2027-28, for the Elementary and Secondary Education Program on reserve. 
• $437.9 million over five years, starting in 2027-28, through the Post-Secondary Student Support Program. 
• $6 billion over six years, starting in 2026-27, for Jordan’s Principle. 
• $575 million over five years, starting in 2027-28, to renew the Inuit Child First Initiative and support the transition to the Pirutsiagutiit 
• $806.7 million over five years, starting in 2027-28, to renew funding for the implementation of An Act respecting First Nations, Inuit and Métis children, youth and families 

Electric Vehicle Charging Infrastructure and the Green Economy 

• $587 million over five years, starting in 2027-28, to Environment and Climate Change Canada to renew the Zero-Emission Vehicle Infrastructure Program. 
• $45 million over five years, starting in 2027-28, to Natural Resources Canada. This funding would help bring innovative Canadian EV charging solutions to market. 
• $2.2 million over five years, starting in 2027-28, to renew the Greening Government Operations Fleet Program, 
• Develop a new Sustainable Bond Framework for government issuance, using the Made-in-Canada sustainable investment guidelines. 
• Showcase progress on the Made-in-Canada sustainable investment guidelines and connect investors with new opportunities through a Sustainable Finance Conference that the Canadian Climate Institute will host in February 2027 

Businesses Development and Labour 

Expanding Competitiveness and Innovation in the Financial Services Sector 

• Introduce a secondary competition objective for the Office of the Superintendent of Financial Institutions (OSFI) through amendments to its governing legislation. 
• Launch the next phase of Canada’s payments modernisation, guided by a public consultation expected in early 2027 on future priorities and the statutory review of the Canadian Payments Act. 
• Develop a pilot project for the use of voluntary digital credentials in financial services to support innovation and help combat identity fraud. 
• Require federally regulated financial institutions to issue stablecoins through non-financial institution subsidiaries regulated under the Stablecoin Act and extend the Stablecoin Act to foreign financial institutions that are not prudentially regulated in Canada, to promote consistent regulatory treatment across stablecoin issuers. 
• Make the process for becoming a federally regulated financial institution more predictable, transparent, and timely by amending the Bank Act, Trust and Loan Companies Act, and Insurance Companies Act to establish a one-year timeline for making decisions on applications by new entrants. 
• Expand exit options for deposit-taking institutions by amending the Bank Act and Trust and Loan Companies Act to allow for more flexibility to transfer assets and liabilities to other financial institutions. 
• Encourage the entry and growth of mid-sized challenger banks by amending the Bank Act to permit greater flexibility on ownership structures. 
• Provide greater clarity and predictability for new and growing financial institutions through a policy statement issued by the Minister of Finance. 
• Make it easier for federal credit unions to access capital and pursue growth opportunities by amending the Bank Act. 
• Work with small- and medium-sized deposit-taking institutions to better understand their funding needs 
• Government intends to develop regulations requiring banks to provide consumers with a single clear annual statement of the fees paid on their chequing and savings accounts 
• Government intends to consult on legislative amendments that would require credit card payments above the minimum amount to be applied first to balances carrying the highest interest rate. 
• Government intends to amend the payday lending exemption in section 347.1 of the Criminal Code to extend the minimum time for repayment of payday loans to 42 days, require repayment in instalments, and prohibit credit insurance charges on payday loans 

Healthcare and Gender Equity 

• $100 million over two years, starting in 2027-28, to renew Health Canada’s Emergency Treatment Fund 
• $10 million over two years, starting in 2027-28, to the Praxis Spinal Cord Institute, to help it develop new treatments for life-altering medical conditions. 
• $8 million over four years, starting in 2027-28, and $2 million ongoing to support organisations working to advance equality for women and address systemic barriers through the Women’s Program 
• $70 million over two years, starting in 2027-28, to provide free access to menstrual products and support menstrual health education and awareness through the  Menstrual Equity Fund 
• $14.9 million over four years, starting in 2027-28, with $5 million in future years to support research on women’s health through the National Women’s Health Research Initiative 

Social Justice 

• $136.3 million over four years, starting in 2027-28, to Justice Canada, Public Safety Canada, Correctional Service Canada, and Employment and Social Development Canada to advance the ongoing implementation of Canada’s Black Justice Strategy. 
• $60 million over four years, starting in 2027-28, and $15 million ongoing to renew funding under the Federal 2SLGBTQI+ Action Plan 
• $7.5 million over three years, starting in 2027-28, to the Public Health Agency of Canada to continue supporting Kids Help Phone 

National Heritage, Parks, Oceans, and Green Spaces 

• $11.4 million over three years, starting in 2026-27, to Veterans Affairs Canada to support the commemoration of defining moments in Canada’s military history. 
• $3.6 billion over 10 years on a cash basis, starting in 2027-28, to Parks Canada to continue managing its capital assets. 
• $9.2 million over four years, starting in 2027-28, to Parks Canada, and $10.5 million over four years, starting in 2027-28, to Fisheries and Oceans Canada, to support feasibility assessments for up to three additional National Marine Conservation Areas in the North  
• $282.7 million over 11 years, starting in 2027-28, on a cash basis, and $18 million ongoing to Parks Canada to establish and operate two new National Marine Conservation Areas 

Transit 

• Renew the Ferry Services Contribution Program until 2032 
• Renew the Remote Passenger Rail Program 
• Budget 2026 proposes to provide $1.2 billion over three years on a cash basis, starting in 2027-28, to VIA Rail Canada to support operations and maintenance 

Food Security 

• In addition to implementing the National Food Security Strategy, makes the National School Food Program permanent, and provides $20 million to the Local Food Infrastructure Fund for food banks. 

2027-2029 Immigration Levels Plan 

New international student arrivals between January and August 2026 were 71% (156,440) lower than during the same period in 2024, while new worker arrivals between January and August 2026 were 57% (170,455) lower than during the same period in 2024. 
 
New asylum claims between January and August 2026 were 68% lower than during the same period in 2024. 

• The Plan sets targets of 370,000 new temporary resident arrivals and 380,000 permanent resident admissions in each of 2027, 2028, and 2029. 
• Up to 200,000 temporary residents already in Canada would have the opportunity to become permanent residents by the end of 2027. 
• Reform the Temporary Foreign Worker Program to better align with regional labour market needs 

Political Reactions

Conservative Party of Canada, Hon. Pierre Poilievre 
Posted on X, CPC Leader Pierre Poilievre wrote on X.com: “BREAKING: Carney’s Costly Credit Card budget adds $765 billion in new debt, meaning higher inflation and interest today and higher taxes tomorrow. Canadians will pay more for food, fuel, and homes. Budget should be named Mastered by Debt.” 
 
Bloc Québecois, Yves-François Blanchet 
Speaking to the media at the House of Commons, BQ leader Yves-François Blanchet said the budget ignored Quebec’s priorities of health, purchasing power and housing, citing a cut in health transfer growth (5% to 3%) costing Quebec about $3 billion a year, and inadequate support for seniors 75+. He called the government’s deficit accounting misleading, criticized roughly $10 billion a year in subsidies to Western oil companies that could instead help Quebec’s tariff-hit economy, and opposed transferring airport management to a foreign company.  
 
New Democratic Party of Canada, Avi Lewis 
Posted on X, NDP Leader Avi Lewis posted the following: “Today’s budget is Christmas come early for CEOs, foreign investors and arms dealers. It talks a lot about affordability but does little to actually lower your costs. The single biggest item in the budget is a “mega deduction” for corporations, with a price tag of $36 billion per year. Fifty per cent more than all of the “affordability measures” combined. But where is the mega deduction to your grocery bill, or your rent? The “Masters of our Destiny” in Budget 2026 is not you and your family, it’s members of the billionaire class that the Prime Minister invited to his Investment Summit.”