2026 Federal Budget

Highlights

An investment budget and a return to operating balance

• Projected deficit of $62.3B in 2026-2027, or 1.8% of GDP
• Federal debt at 39.9% of GDP in 2026-2027
• Projected real GDP growth: 1% in 2026, 1.7% in 2027
• Immigration: 380,000 permanent residents and 370,000 temporary residents per year in 2027, 2028 and 2029

Economy, Innovation and Business Support

Competition, capital and fast-tracked major projects

Up to $15M in capital gains exemption

• Establish the Canadian Growth Incentive to help high-potential businesses attract investment and grow in Canada. It includes two measures: a new tax exemption for Canadian business builders on up to $15M of capital gains from successful investments in eligible Canadian corporations, and an enhanced capital gains deferral for small businesses when the proceeds are reinvested in another Canadian small business.

SR&ED expanded to commercialization: $930M over five years

• Further expand the SR&ED tax incentive program by adding certain commercialization expenses. Eligible expenses will be broadened to include certain costs of bringing a new product or process to market (including obtaining the necessary regulatory approvals or certifications) and of protecting and maintaining intellectual property. The measure would apply to expenses incurred in taxation years beginning on or after Budget Day. It is expected to provide $930M in support over five years, and $235M per year ongoing.

$1B for the Strategic Response Fund for large-scale R&D

• $1B over six years, starting in 2028-2029, for the Strategic Response Fund to support large-scale research, development and innovation projects that can strengthen Canada’s long-term competitiveness and growth.

$181.4M for Invest in Canada

• $181.4M over four years, starting in 2027-2028, $50.4M in future years and $40.4M per year ongoing, to give Invest in Canada specialized financial sector expertise and establish its presence in global markets to attract capital from major investors and multinational corporations. Invest in Canada will also be responsible for hosting the Canadian Investment Summit going forward.

Ownership controls in grocery retail

• Eliminate anti-competitive ownership controls: work with provinces and territories to end ownership controls that limit competition in the grocery retail sector, building on Manitoba’s new model.

Non-compete clauses limited across Canada

• Limit the use of non-compete clauses: working with provinces and territories, extend limits on non-compete clauses in employment contracts across Canada to establish a harmonized model based on the federal approach.

$121M for the Major Projects Office

• $121M: proposed funding for PCO so the Major Projects Office can support work on projects listed, or under consideration for listing, under the Building Canada Act, including consultations with Indigenous peoples and regulatory work.

Canada Strong Fund: a Crown corporation

• Introduce legislation in the coming months to make the Canada Strong Fund an independent, stand-alone Crown corporation. In the meantime, the Fund will be set up as a wholly owned subsidiary of the Canada Development Investment Corporation, with its own board of directors and CEO.

Canada Strong Notes launched in 2027

• In 2027, the government plans to launch Canada Strong Notes, a retail investment product tied to the Canada Strong Fund that will let Canadians invest alongside the Fund and get a direct share of its returns. Designed to be widely accessible, the notes will be available through participating financial institutions and will be easy to buy, hold and cash in. As principal-protected notes, they guarantee that Canadians get back their full initial investment while benefiting from the Fund’s returns.

$170M for the Tariff Response for the workforce

• To ensure workers can keep accessing targeted training and employment services delivered in partnership with provinces and territories, $170M for the workforce Tariff Response in 2027-2028.

$6.2M for GPAI at the Montreal Centre of Expertise

• Support Canada’s continued participation in the Global Partnership on Artificial Intelligence (GPAI) through the International Centre of Expertise in Montréal on Artificial Intelligence. GPAI is an international forum where countries share information and develop practical tools for the responsible development of AI. $6.2M over four years to Innovation, Science and Economic Development Canada to support this work.

500 MW of sovereign AI compute capacity

• Give Canadian AI companies access to 500 MW of sovereign AI compute capacity through new financial tools, such as guarantees and offtake agreements, to mobilize private capital and increase compute capacity.

$187.4M for the major projects delivery entity

• Establish a major projects delivery entity so approved projects have access to the expertise and resources they need to move quickly. This specialized organization will have the technical knowledge and project development expertise needed to manage risks, support certain projects and keep them on track.
• $187.4M over five years starting in 2026-2027, and $24.2M in future years, to create and operate the entity and provide the support needed for the Mackenzie Valley Highway and the Taltson hydroelectric expansion project.

One project, one review, one year

• One project, one review, one year: federal impact assessments and permit reviews would be carried out at the same time rather than one after the other, and decisions would be made within one year of receiving all required studies and information from proponents.

A single lead authority per project

• A single lead authority per project: responsibility for project assessments would go to the federal regulator with the most relevant expertise. The Canada Energy Regulator would lead reviews of pipelines, power lines and offshore energy projects, while the Canadian Nuclear Safety Commission would lead reviews of nuclear and uranium projects.

National interest corridors through regional assessments

• National interest corridors through regional impact assessments: national interest corridors would be established in strategic areas across Canada, including transportation, telecommunications and energy corridors, as well as nation-building industrial corridors.

BDC and EDC merged into a single bank

• Launch a transition process to create a single federal development bank by merging the Business Development Bank of Canada and Export Development Canada. The new institution will draw on the skills, expertise and strength of both organizations’ teams to offer Canadian businesses an integrated suite of financing tools, whether they aim to grow at home or expand internationally.

CIB moved to Finance, Indigenous lending centralized

• Transfer responsibility for the Canada Infrastructure Bank (CIB) to the Minister of Finance, refocus its mandate on loans and loan guarantees to support major infrastructure investments, and transfer the Indigenous Loan Guarantee Program to the CIB. Investment in major Indigenous projects will be centralized within the CIB, which will be better positioned to deliver on its mandate of supporting projects in Canada.

National Defence and Security

Intelligence, fraud and financial crime

$15.9M to acquire the National Field of Honour in Pointe-Claire

• Provide Veterans Affairs Canada with $15.9M over four years and $2.1M per year ongoing to acquire the National Field of Honour, operate it and carry out the necessary remediation work.

Canadian Black Justice Strategy

• $136.3M over four years to Justice Canada, Public Safety Canada, Correctional Service Canada and Employment and Social Development Canada to advance the ongoing implementation of the Canadian Black Justice Strategy.

$110M for veterans case management

• $110M: proposed funding for VAC and the RCMP to maintain case management services that help former members of the Canadian Armed Forces and the RCMP with complex health issues or rehabilitation needs get services and support quickly.

$6B over 10 years for CSIS

• $6.0B over 10 years and $579.5M per year ongoing for CSIS to expand its presence and capabilities. This funding would help CSIS engage Canadians in their communities and better protect them against terrorism, foreign interference, espionage and other evolving threats, while reducing its reliance on foreign partners.

$176.3M to enforce the Safe Social Media Act (C-34)

• Establish the new Canadian Digital Safety and Data Protection Commission, which will enforce the Act, ensure compliance and work toward a safer online space for Canadians. $176.3M over five years and $29.3M per year ongoing to Canadian Heritage for this work.

$64M for radicalization prevention

• $64M over four years and $9M per year ongoing to Public Safety Canada to support the Canada Centre for Community Engagement and Prevention of Violence, including $56M over four years and $7M per year ongoing for the Community Resilience Fund.

Multi-sector legislative framework against fraud

• Propose a multi-sector legislative framework against fraud as the cornerstone of the National Anti-Fraud Strategy, to better protect Canadians from fraud in the financial and telecommunications sectors and on digital platforms. Organizations will be required to prevent, detect and stop fraud, and to work together across sectors to resolve fraud complaints.

Bank fraud: customer liability capped at $0

• Amend the Bank Act to cap at $0 the maximum amount a customer can be held liable for, absent gross negligence on their part, for any transaction resulting from unauthorized access to their bank account.

Legislation against complex financial crime

• Introduce legislation to strengthen investigative tools targeting organized crime, modernize Criminal Code offences to keep pace with evolving financial crime and strengthen penalties, and make sure crime does not pay by making it easier to recover the proceeds of crime.

$182.4M to the CRA against tax evasion and money laundering

• $182.4M over four years to the Canada Revenue Agency to strengthen its capacity to investigate tax evasion and to work with law enforcement partners to combat the laundering of proceeds of crime and disrupt illicit revenue streams.

Earthquake insurance: up to $50B in emergency funding

• Table legislation establishing the Canadian Earthquake Insurance Mechanism. Funded by nominal levies on insurers, the mechanism would provide up to $50B in emergency funding to the property and casualty insurance sector following an extreme earthquake.

$26M against auto theft at the border

• $26M: proposed funding for the CBSA to maintain its capacity to identify, examine and detain suspected stolen vehicles before they leave Canada.

$192.5M for CBSA border technology

• $192.5M over four years and $42.5M per year ongoing to the Canada Border Services Agency to modernize and stabilize critical technology infrastructure at the border.

Transportation and Infrastructure

Communities, ferries and airport concessions

$37.6M for a first airport operating concession

• $37.6M over three years, starting in 2026-2027, to complete due diligence, develop the concession framework, obtain specialized commercial and legal advice and run the competitive operator selection process by early 2029. Budget 2026 also proposes to introduce the legislation needed to put operating concessions in place.

Air access for regional and remote communities

• Improve access to air transportation in regional, remote and northern communities by supporting new air routes and investing in infrastructure at small regional airports.

Transparency of airport fees

• Introduce legislation to increase the transparency of airport fees, strengthen performance and governance reporting, and support economic development and accessibility.

Capital assistance expanded to small airports

• Expand eligibility for the Airports Capital Assistance Program to small airports in the National Airports System.

Quebec projects in the Build Communities Strong Fund

• Quebec projects selected under the Build Communities Strong Fund: expansion of the Omni-Centre sports facilities, Phase 1, Pincourt; repurposing of the Notre-Dame-du-Laus church, Notre-Dame-du-Laus; renovation and upgrade of Le Pantoum, Québec City; renovation of the Annie-Saint-Arneault library, La Tuque; Gaspé and Gespeg multisport complex, Gaspé; sports hall at the Centre des loisirs Sainte-Anne, Sainte-Anne-de-Beaupré.

$1.5B for rinks and recreation facilities

• $1.5B over nine years under the Build Communities Strong Fund to support the construction, expansion, modernization and repair of rinks and recreation facilities across Canada. $750M will go to rinks, with a further $750M for other community recreation facilities.

Ferries: $1.3B over eight years

• Renew the Ferry Services Contribution Program until 2032. The renewal will support activities that maintain service continuity, such as building new terminals in Wood Islands and Caribou and temporarily chartering replacement vessels. Provide Transport Canada with $1.3B over eight years to support the renewal.

$35.1M for passenger rail in remote regions, including Quebec

• Renew the Remote Passenger Rail Program. This funding will help maintain essential transportation links for remote and mainly Indigenous communities by supporting safe, reliable and sustainable passenger rail services in Manitoba, Quebec and Newfoundland and Labrador. $35.1M in 2027-2028 to Transport Canada to support the renewal.

$1.2B for VIA Rail operations

• Provide funding to support VIA Rail Canada’s operations and maintenance. This will help maintain reliable passenger rail services connecting communities across the country. Provide VIA Rail Canada with $1.2B over three years to support these activities.

$776M in 2027-2028 for CATSA

• $776M: proposed funding for CATSA to continue its security screening operations at airports.

Victoria Bridge and federal bridges moved to the Minister of Housing and Infrastructure

• The first step toward integrated oversight would be to give the Minister of Housing and Infrastructure responsibility for: The Federal Bridge Corporation Limited and the four international bridges it manages; the Confederation Bridge; the Victoria Bridge; the Buffalo and Fort Erie Public Bridge Authority; the new eastern bridge project and the Alexandra Bridge replacement project in the National Capital Region.

Immigration and Workforce

Stabilized targets and temporary foreign worker reform

EI benefits for apprentices: from 14 to 18 weeks

• Amend the Employment Insurance Act to temporarily increase the minimum number of weeks of regular EI benefits from 14 to 18 for apprentices in full-time training. The cost is estimated at $5M over four years starting in 2027-2028, and $1.1M in future years.

2027-2029 Levels Plan: 380,000 permanent residents per year

• Implement the 2027-2029 Immigration Levels Plan, which sets a target of 370,000 new temporary resident arrivals and 380,000 permanent resident admissions in 2027, 2028 and 2029. To implement it, Budget 2026 proposes to provide Immigration, Refugees and Citizenship Canada with $56.9M over four years, starting in 2027-2028, and $205.4M in future years.

Up to 200,000 temporary residents to permanent residence

• Ease the transition to permanent residence for many long-time temporary residents. Up to 200,000 temporary residents already in Canada could become permanent residents by the end of 2027. With the cooperation of provinces and territories, 100,000 eligible workers could use Express Entry or the Provincial Nominee Program, increasing permanent economic immigration. To manage this transition, Budget 2026 proposes $302.3M over four years, starting in 2027-2028, and $90.6M per year ongoing.

$151.5M to reform the Temporary Foreign Worker Program

• Work with provinces and territories to reform the Temporary Foreign Worker Program so it better reflects regional labour market needs, while improving processing times and strengthening employer compliance. Budget 2026 proposes to provide Employment and Social Development Canada with $151.5M over five years, starting in 2026-2027, for these reforms.

$98M to reduce the asylum claims backlog

• $98M: proposed funding for the IRB, IRCC and the CBSA to reduce the asylum claims backlog and support the smooth operation of Canada’s asylum system.

Environment, Energy and Natural Resources

Electricity, nuclear, critical minerals and forestry

Clean technology and clean electricity tax credits extended to 2040

• Extend the Clean Technology Investment Tax Credit and the Clean Electricity Investment Tax Credit to the end of 2040. For the Clean Technology Investment Tax Credit, the phase-down to 15% would take place in 2040 instead of 2034.

Intraprovincial transmission lines eligible for the credit

• Expand eligibility for the Clean Electricity Investment Tax Credit to the highest-voltage intraprovincial transmission lines in each province, for property acquired and available for use on or after Budget Day.

Nearly $4B for electricity grids

• Nearly $4B over 10 years, starting in 2027-2028, for the expansion of electricity infrastructure, renewable energy projects and priority electricity sector projects across Canada.

$37M to study interprovincial electricity interties

• $37M in 2027-2028 for a rigorous business case on the proposed interties and for discussions on cost-sharing among provinces and territories.

$1.6B for energy reliability in the North

• $1.6B over 10 years, starting in 2027-2028, including $713.8M to support renewable energy and capacity-building projects that help Indigenous, rural and remote communities move off diesel and fossil fuels to renewable energy sources.

$6B for emerging electricity generation technologies

• $6B over six years, starting in 2028-2029, set aside for the deployment of emerging electricity generation technologies.

Clean Electricity Regulations: natural gas and hybrids

• Make planned investments in electricity generation more predictable while offering more flexibility, including for the use of natural gas in the short term, hybrid energy systems and distributed renewables, so grids have more ways to meet growing demand as they expand, while reaching net zero by 2050.

$518.5M for the Nuclear Energy Strategy

• $518.5M over five years, starting in 2027-2028, and $18.1M per year ongoing, to advance Canada’s research, supply chain, workforce and regulatory capacity in this field.

$587M for more than 55,000 charging stations

• To support the installation of more than 55,000 additional electric vehicle charging stations in the regions with the greatest infrastructure needs, $587M over five years, starting in 2027-2028, to Environment and Climate Change Canada to renew the Zero Emission Vehicle Infrastructure Program (ZEVIP).

$424.4M to renew the Critical Minerals Strategy

• Renew the Canadian Critical Minerals Strategy, which supports strategic investments in the technology needed to extract and process critical minerals, expands our geoscience and research capacity, provides targeted funding for priority critical minerals projects and keeps government priorities aligned with market needs. Budget 2026 proposes to provide Natural Resources Canada with $424.4M over four years starting in 2027-2028 to support this renewal.

Mineral exploration tax credits extended to 2032

• Extend the Mineral Exploration Tax Credit and the Critical Mineral Exploration Tax Credit by five years, to March 31, 2032. Budget 2026 also proposes to add antimony to the list of minerals eligible for the Critical Mineral Exploration Tax Credit. These measures are expected to support $956M in mineral exploration investment over five years, starting in 2026-2027.

$500M for fibre supply chains

• $500M over six years, starting in 2027-2028, to Natural Resources Canada to strengthen fibre supply chains and help provinces, territories, Indigenous partners and industry advance forest management and stewardship and adopt new technologies and practices.

$2B to modernize forestry facilities

• $2B over six years, starting in 2027-2028, to Natural Resources Canada to help forestry companies modernize their facilities and equipment, increase productivity and expand production of higher-value products, and to support research, development and demonstration projects.

$4B for a forest sector accelerator at EDC

• $4B over six years, starting in 2027-2028, to Export Development Canada through the Canada Account. It will support a new forest sector accelerator investing in large new facilities and major transformations of existing ones, including biorefineries, biofuel plants and other facilities producing innovative, high-value forest products.

Update to industrial carbon pricing

• Work toward a predictable and effective carbon pricing system that drives emissions reductions while giving businesses and investors greater clarity. As part of this effort, the government intends to update the federal industrial carbon pricing model to give industrial emitters, clean technology developers and financial markets more certainty, and to support continued investment in emissions reductions.

Harmonizing carbon markets across provinces

• Work with provinces and territories to better harmonize and link carbon markets across Canada, improving market efficiency and supporting more affordable emissions reductions.

$400M for energy efficiency in industrial facilities

• $400M over seven years, starting in 2027-2028, to Environment and Climate Change Canada to renew the Green Industrial Facilities and Manufacturing Program, to be renamed the Strategic Transition to High-Efficiency Industrial Facilities. The program will reduce project risk and speed up the adoption of energy-saving technologies in industrial and manufacturing facilities, including small and medium-sized businesses.

$3.6B over 10 years for Parks Canada assets

• To preserve infrastructure in Canada’s national parks, historic sites and national marine conservation areas, provide Parks Canada with $3.6B over 10 years, starting in 2027-2028 on a cash basis, for ongoing asset management.

$282.7M for two new national marine conservation areas

• Provide Parks Canada with $282.7M over 11 years and $18M per year ongoing to establish and manage two new national marine conservation areas.

Health

Mental health and addictions: $2.1B

$2B for community mental health and addiction facilities

• $2B over two years for the Health Infrastructure Fund. Funded facilities will be able to provide care before people reach a crisis.

$100M for the Emergency Treatment Fund

• $100M over two years to renew Health Canada’s Emergency Treatment Fund. The Fund supports locally designed and delivered responses to urgent substance use and overdose needs, including mobile response services, naloxone distribution and land-based healing programs, in municipalities and Indigenous communities across Canada.

Housing and Homelessness

Build Canada Homes and ending homelessness within 10 years

$11.2B to end homelessness within 10 years

• To implement this new partnership and meet the goal of ending homelessness within 10 years, $11.2B over four years, starting in 2027-2028, and $17.8M per year ongoing.

$1.8B for a Build Canada Homes integrated support fund

• $1.8B over four years and $3.2B per year ongoing to create a new Integrated Support Fund delivered through Build Canada Homes. The Fund would support projects that combine housing with health, mental health, addiction treatment and social support services.

$3.6B for supportive and transitional housing

• $3.6B over four years and $6.4B in future years to build new supportive and transitional housing across Canada. Federal funding will cover capital costs, while provincial and territorial partners will fund operations and integrated support services, including employment, training, income and health.

$2.1B over three years for Reaching Home

• $2.1B over three years, starting in 2028-2029, and $4.4B in future years to renew Reaching Home and the Veteran Homelessness Program for another 10 years.

Canada Housing Benefit renewed for 10 years

• Renew the Canada Housing Benefit for 10 years ($1.7B over three years, starting in 2028-2029, and $3.9B in future years), providing direct monthly rent assistance to low-income Canadians, helping prevent homelessness and allowing vulnerable people and families to find and keep stable housing.

$13B more capital for Build Canada Homes: 200,000 homes

• $13B over 10 years, starting in 2028-2029, to increase Build Canada Homes’ capital and boost non-market housing construction in Canada. Overall, the investments in this budget will allow Build Canada Homes to pave the way for 200,000 homes across the country over the next decade, bringing its total capitalization to $45B.

Build Canada Homes in Quebec: 108 homes in Malartic

• The selected Quebec project: Malartic (QC), supporting the construction of 108 affordable homes with Accès Patrimmo.

$1.5B to prepare federal lands

• $1.5B over four years and $387.4M in future years to prepare federal lands for housing construction, including water supply, wastewater treatment, roads and other infrastructure needed for housing.

$100M for municipal e-permitting

• $100M over three years for a partnership with the Federation of Canadian Municipalities to support municipal e-permitting and AI adoption, making review and approval processes more efficient and speeding up housing construction.

$300M for modern construction methods

• $300M over three years, starting in 2028-2029, and $200M in future years, to Innovation, Science and Economic Development Canada for the Strategic Response Fund, to build industrial capacity, speed up the adoption of modern construction methods and help lower construction costs.

Foreign buyer ban extended to 2029

• Extend the ban on foreign purchases of existing residential property by two years, to January 1, 2029, except for new residential properties.

Mortgage insurance for « missing middle » housing

• Change mortgage insurance rules to unlock financing for « missing middle » housing. The changes include new mortgage insurance rules for three- and four-unit buildings, and allow private mortgage insurers to offer mortgage loan insurance for residential properties with 5 to 50 units.

Optional mortgage insurance cap raised to $1.5M

• Change mortgage loan insurance rules to raise the price cap for homes eligible for optional mortgage insurance from $1M to $1.5M, and allow 30-year amortizations for these insured loans, provided at least one borrower is a first-time buyer or the home is a new build.

Agriculture

Wine, food infrastructure and farm succession

$176.9M for the Wine Sector Support Program

• $176.9M over three years, starting in 2027-2028, to Agriculture and Agri-Food Canada to renew the Wine Sector Support Program.

Renew the Local Food Infrastructure Fund

• Renew the Local Food Infrastructure Fund. The Fund helps food banks and other national, regional and local organizations buy food and invest in community food infrastructure, including greenhouses, kitchens, storage facilities and transportation equipment used to produce, process, store and distribute food locally. $124M over three years to Agriculture and Agri-Food Canada to support the Fund.

Intergenerational farm and fishing transfers expanded to nieces and nephews

• To help family farms and fishing businesses stay in operation, expand transfer eligibility to nieces and nephews. The measure would apply to transfers made on or after January 1, 2027.

First Nations

Housing, infrastructure and basic services

$610.3M for Nutrition North Canada

• $610.3M over four years, $118.1M in 2031-2032 and $117M per year ongoing, so Nutrition North Canada can continue to provide and improve this essential support.

$32B over 10 years for housing and infrastructure

• A major long-term commitment of $32B over 10 years for First Nations housing and infrastructure. This sustained 10-year commitment aims to provide more certainty, speed up construction and change how projects are funded, so communities can make strategic investments and gradually close housing and infrastructure gaps over time.

First Nations on-reserve infrastructure program

• Launch a First Nations on-reserve infrastructure program, with proposed funding of $18.5B over 10 years starting in 2027-2028. This funding would support the construction and maintenance of a wide range of assets, from roads and bridges to schools and health facilities.

$11B over 10 years for First Nations housing

• $11B over 10 years to improve First Nations housing. This funding will help communities carry out routine maintenance and repairs to preserve 119,000 existing homes, build more than 6,900 new homes and renovate more than 10,900 existing homes over the next 10 years.

$1.7B for shovel-ready housing projects

• An additional $1.7B over five years for housing in First Nations communities on reserve. This funding will speed up shovel-ready housing projects while freeing up core funding for housing planning, construction and maintenance over the next 10 years.

$150M for Yänonhchia’: about 825 housing loans

• $150M over five years for the Yänonhchia’ Housing Finance revolving fund, a First Nations-led initiative that works with Indigenous financial institutions to provide First Nations members with housing loans and help them become homeowners. This funding would help Yänonhchia’ launch lending activities to support about 825 housing loans in 60 to 100 First Nations communities.

$5.8B for on-reserve elementary and secondary education

• $5.8B over five years for the Elementary and Secondary Education Program on reserve, including renewed targeted funding for adult education.

$6B over six years for Jordan’s Principle

• $6.0B over six years to support Jordan’s Principle. This funding will support First Nations children’s continued access to health, social and education services, as well as ongoing efforts to remove systemic barriers.

$575M: Inuit Child First becomes Pirutsiagutiit

• $575M over five years to renew the Inuit Child First Initiative and support its transition to the Pirutsiagutiit program, co-developed with Inuit Tapiriit Kanatami and the four Inuit treaty organizations.

$806.7M for child and family services

• $806.7M over five years to renew funding for the implementation of An Act respecting First Nations, Inuit and Métis children, youth and families.

$2.9B for Non-Insured Health Benefits

• $2.9B over three years to continue providing First Nations and Inuit with coverage for a range of health services, including mental health services, medical travel and prescription drugs.

Crown Consultation Centre

• A single Crown consultation process: a new Crown Consultation Centre within the Impact Assessment Agency would coordinate a single, streamlined federal consultation process for each major project, reducing duplication and consultation fatigue among Indigenous groups while improving federal-provincial coordination.

Culture

160th anniversary, museums and journalism

$300M for the Canada 160 Fund

• $300M in 2027-2028 for a set of programs supporting the stories, places and experiences that bring Canadians together. The Canada 160 Fund will be a flagship initiative of the celebrations for the 160th anniversary of Confederation.

$25M for local festivals and performing arts for the 160th

• $10M in 2027-2028 for the Building Communities through Arts and Heritage program and $15M for the Canada Arts Presentation Fund to support local festivals and performing arts across the country as part of Canada’s 160th anniversary.

Consultation on a Canadian Creator Credit

• Consult Canadians and cultural sector stakeholders on a new Canadian Creator Credit, a new form of tax relief that could help creativity flourish among artists, artistic production and cultural entrepreneurship in Canada. The credit would be a non-refundable personal income tax credit that, combined with the basic personal amount, would recognize up to $45,000 per year of eligible net business income from original creative works.

$76M to renew the Canada Strong Pass

• Renew the Canada Strong Pass for another summer. The pass would be enhanced to extend reduced-price access to Indigenous-led museums and cultural centres. $76M in 2027-2028 to support the renewal.

Free national museums for people under 25

• Make free admission to Canada’s national museums permanent for children and youth under 25. $46.3M over five years and $11.5M per year ongoing to Canada’s national museums and the National Battlefields Commission.

$783.1M for national museums and heritage institutions

• $783.1M over five years to support Canada’s national museums, the National Battlefields Commission, the National Arts Centre and Library and Archives Canada. This investment will allow these institutions to renovate and modernize aging facilities, protect collections of national importance and keep offering exhibitions, performances and services that connect Canadians with our history and culture.

$32.2M for a free digital collection of Canadian books

• $32.2M over four years and $9.5M in future years to create a free national digital collection so Canadians can discover and borrow books by Canadian authors. The collection will include at least 200 titles at launch in 2027-2028 and grow to more than 2,000.

$20M to renew the Canada Book Fund

• $20.0M over four years and $5M per year ongoing to renew the Canada Book Fund, so Canadian publishers can bring more books by Canadian authors to readers at home and abroad, and authors, illustrators, translators and other creators have more opportunities to build lasting careers.

$300M more for CBC/Radio-Canada

• Provide CBC/Radio-Canada with an additional $300M over two years to meet the evolving needs of Canadians across the country.

$134M for the Local Journalism Initiative

• $134M over four years and $41M per year ongoing for the Local Journalism Initiative, which supports independent, trusted and diverse local news organizations across the country.

Journalism credit: 35% rate maintained until 2028

• For print media, maintain the temporarily enhanced 35% credit rate for two more years, until December 31, 2028, to give the sector more stability as it adapts to a changing media landscape. Private audio and audiovisual news organizations that become eligible for the credit would benefit from the same enhanced rate until 2028.

$393.2M for the 2028 Francophonie Summit

• To advance Canada’s goals as leader of La Francophonie and to support the logistics and security needed to host the 2028 Francophonie Summit, provide 10 departments and agencies with $393.2M over three years.

$20M for the Canada Council for the Arts

• $20M: proposed funding for the Canada Council for the Arts to support professional artists and arts organizations in creating, producing and presenting live performances (theatre, dance, music and more).

Women and Gender Equality

Menstrual equity and the 2SLGBTQI+ Action Plan

Menstrual Equity Fund

• $70M over two years to provide free access to menstrual products and support menstrual health education and awareness through the Menstrual Equity Fund.

Federal 2SLGBTQI+ Action Plan

• $60M over four years and $15M per year ongoing to renew funding under the Federal 2SLGBTQI+ Action Plan, which supports community projects, public awareness, research and the 2SLGBTQI+ Secretariat.

International Trade and Global Affairs

EDC, the Canada Account and trade remedies

Consultations on the trade remedy system

• Launch public consultations on possible legislative and regulatory changes to strengthen the system and make it more effective.

Raise the Canada Account limit

• Make legislative amendments to raise the Canada Account limit and modernize its governance framework to make it more flexible, simplify the approval process and support high-value strategic transactions.

CCC becomes a subsidiary of EDC

• Amend the Canadian Commercial Corporation Act, the Export Development Act and the Financial Administration Act to make the CCC a subsidiary of Export Development Canada.

Taxation and Public Service

Tax simplification, enhanced benefits and Canada Post

Deposit insurance limit raised to $250,000

• Modernize the deposit insurance framework by amending the Canada Deposit Insurance Corporation Act, including raising the deposit insurance limit to $250,000, providing temporary protection for high balances tied to life events such as the sale of a home, and removing the limit on eligible deposits held in registered and tax-free accounts.

One-time 50% top-up of the Groceries Benefit in 2027

• Enhance the benefit once more through the 2027 Canada Groceries and Essentials Benefit top-up, a one-time 50% top-up for the 2026-2027 benefit year, paid in early 2027. The top-up could reach $339 for a single person without children and $679 for a couple with two children.

Build Canada Workers Benefit: up to $1,859

• Introduce the Build Canada Workers Benefit, which would build on and enhance the current Canada Workers Benefit. The minimum income threshold would drop from $3,000 to $500, and from $1,150 to $200 for people eligible for the disability supplement. The maximum benefit would rise to $1,859 for single people without children and $3,143 for families, up from $1,709 and $2,943 respectively under the current benefit.

End of advance benefit payments starting in 2028

• Cut advance payments in half for the 2027 taxation year, starting in July 2027, and eliminate them starting with the 2028 taxation year. Workers eligible for the Build Canada Workers Benefit would instead receive their full entitlement after filing their tax return for the year.

$845M over four years for a refundable caregiver credit

• Make the Canada Caregiver Credit fully refundable, representing $845M in additional support over four years, starting in 2027-2028, and $245M per year ongoing. In total, 585,000 caregivers would receive support, including 180,000 people who currently get nothing from the credit.

Credit card payments: Quebec’s rule extended across Canada

• Consult on legislative amendments that would require the portion of a credit card payment above the minimum payment to be applied first to the balance with the highest interest rate, as is currently the case in Quebec.

Regulating payday loans in the Criminal Code

• Amend the payday loan exemption in section 347.1 of the Criminal Code to set a minimum repayment period of 42 days for payday loans, require repayment in multiple instalments and ban credit insurance fees on payday loans.

Instalment threshold raised to $7,500

• Amend the Income Tax Act to raise the tax instalment threshold, unchanged since 2008, to $7,500 and index it to inflation. Budget 2026 also proposes to simplify instalments for self-employed business owners, including by allowing a single payment equal to two-thirds of their net tax owing by December 31.

Single May 15 deadline starting with the 2027 tax year

• Make it easier to file accurate returns by setting May 15 as the single deadline to file tax returns and pay any tax owing (including for self-employed people). The measure would apply to the 2027 and later taxation years and is expected to save Canadians about $230M in interest and penalties over five years, and $55M per year ongoing.

One year to file a notice of objection

• Extend the deadline to file a notice of objection and remove the need for taxpayers to request an extension. Budget 2026 proposes to give taxpayers one year after the notice of assessment is sent to file a notice of objection, while individuals and graduated rate estates will have until the later of that date and two years after their filing due date.

T1135 threshold doubled to $200,000

• Raise the foreign property threshold that triggers the requirement to file the Foreign Income Verification Statement from $100,000 to $200,000, relieving about a third of current filers from this obligation. The CRA would also raise the threshold for the simplified reporting method from under $250,000 to under $500,000. These measures would apply to taxation years ending after 2026.

Simplified northern residents deductions

• Change the requirements for the northern residents deductions, starting with the 2027 taxation year, so the travel deduction no longer depends on employer-provided travel benefits. Some limits on the residency deduction would also be removed. The measure is expected to provide an additional $99M in tax relief over four years, and $26M per year ongoing.

A single credit for volunteer firefighters and search and rescue volunteers

• Combine the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit into a single, simplified tax credit for volunteer firefighters and search and rescue volunteers, starting with the 2027 taxation year, for individuals who perform at least one of these roles. The new combined credit would keep a 14% rate on a $6,000 amount and remain non-refundable.

RRSPs and RRIFs merged into a « lifetime RRSP »

• Merge the tax rules for RRSPs and RRIFs to essentially create a « lifetime RRSP. » People would no longer have to convert their RRSP to a RRIF when they turn 71.

Taxable preferred shares: CCPC exemption

• Reduce the administrative and compliance burden of the taxable preferred share regime by exempting dividends paid by Canadian-controlled private corporations. The exemption would apply to dividends paid after Budget Day.

Dividend allowance raised to $1,500,000

• Reduce the administrative and compliance burden of the taxable preferred share regime by raising the dividend allowance from $500,000 to $1,500,000 and the dividend allowance reduction threshold from $1,000,000 to $3,000,000, for taxation years ending after 2026.

Corporate loss transfer rule

• Introduce a corporate loss transfer rule. Stakeholders are invited to comment on a proposal that would allow, in certain circumstances, the transfer of current-year non-capital losses within wholly owned corporate groups.

Shared cannabis excise stamp, including Quebec

• Introduce a shared cannabis excise stamp for the provinces and territories with the same excise duty rate: British Columbia, Quebec, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland and Labrador, Yukon and the Northwest Territories. This would cut the number of cannabis excise stamps from 13 to 6 and greatly ease the compliance burden for licensed cannabis producers.

$116.5M to the CRA for tax compliance

• $116.5M over four years to the CRA to: expand compliance activities targeting individuals and businesses that do not file tax returns; strengthen the audit program for reporting trusts to improve their compliance; and increase pre-assessment reviews of corporate tax returns to prevent unwarranted refunds.

$1.4B in support for Canada Post operations

• Provide additional support for Canada Post operations, including $1.4B over two years.

$1.2B for the move to community mailboxes

• $1.2B over seven years to support the transition from urban door-to-door mail delivery to community mailboxes.

$2 stamp starting in 2027, then 7% increases per year

• Help bring Canada Post stamp prices more in line with OECD countries by raising the stamp price to $2 starting in 2027, then increasing it by 7% per year on an ongoing basis. The impact on consumers and small businesses will be relatively limited, with an estimated increase of only about $6 per year for consumers and $9 per year for small businesses.