Federal Budget 2026 includes billions in investments for housing, affordability and local journalism

The federal government is outlining billions of dollars in new investments aimed at improving affordability, expanding housing, strengthening Canada's economy and supporting communities through Budget 2026.

Released Thursday by Finance Minister François-Philippe Champagne, Budget 2026: Masters of our Destiny includes measures targeting household costs, business investment, infrastructure, Indigenous communities, national security and Canada's cultural sector.

The budget includes approximately $22 billion in new affordability measures and plans to mobilize $400 billion in capital investments over six years.

Among the measures aimed at helping Canadians manage rising living costs is an increase to the Canada Groceries and Essentials Benefit.

The government is proposing a one-time 50 per cent increase to the benefit for the 2026-27 benefit year, with payments scheduled for early 2027. Eligible single individuals without children could receive up to $339, while couples with two children could receive up to $679.

The budget also proposes making the Canada Caregiver Credit fully refundable. Eligible caregivers could receive up to $1,260 annually beginning in 2027.

Housing is another major focus, with the federal government committing $44.7 billion over 11 years toward efforts to address homelessness, expand non-market housing and increase the availability of homes.

An additional $1.2 billion is being allocated in 2027-28 to extend federal funding agreements with provinces and territories for mental health, addictions and home and community care services.

The government is also proposing more than $2 billion for a national heat pump rebate program, intended to help as many as 820,000 households transition to heat pumps.

Support for local journalism and Canadian culture

Budget 2026 includes several measures affecting Canada's media and cultural industries.

The federal government is committing $134 million over four years, beginning in 2027-28, to support independent and diverse local news organizations. A further $41 million in ongoing annual funding is also included.

The budget proposes extending the Canadian Journalism Labour Tax Credit to qualifying private audio and audiovisual news organizations, expanding eligibility beyond organizations producing written news.

CBC/Radio-Canada is also set to receive $300 million over two years, while another $600 million is being allocated for immediate support to Canada's audio and audiovisual sectors.

The government is also establishing a $300-million Canada 160 Fund to mark the country's 160th anniversary.

Other cultural measures include a renewed Canada Strong Pass, permanently free admission to national museums for children and youth under 25, and additional funding for Canadian books and creative industries.

Investments in infrastructure and natural resources

The budget places considerable emphasis on economic development, energy and natural resources.

More than $50 billion is being directed toward the Power Canada Strong national electricity strategy, which aims to double Canada's electricity grid capacity by 2050.

The government is also committing $2.3 billion to its Critical Minerals Strategy and $518.5 million toward its Nuclear Energy Strategy.

The forest sector is set to receive $6.5 billion over six years to modernize facilities, strengthen fibre supply and support new projects.

Another $1.5 billion over nine years is being committed to expanding, upgrading and rehabilitating recreational facilities and ice rinks across the country.

Indigenous communities and national security

Budget 2026 includes more than $50 billion over 10 years for initiatives related to reconciliation with Indigenous Peoples.

That includes $32 billion over 10 years for First Nations housing and infrastructure, along with more than $18 billion over six years for education, skills training, health, community safety, children and families, and emergency management.

The budget also outlines increased defence and security spending, including $7.6 billion over five years to extend and expand Canada's Operation REASSURANCE mission in Europe.

The government says it is working toward increasing defence spending to five per cent of gross domestic product by 2035.

Additional investments include artificial intelligence, quantum technology, emergency preparedness and efforts to improve online safety.

The federal government says Budget 2026 is intended to strengthen Canada's economic independence while maintaining fiscal discipline and creating opportunities for future growth.