Centre Block at Parliament Hill (MBC News stock photo)
Ottawa’s latest federal budget includes new financial help for struggling households, billions for community infrastructure and a long-term plan to tackle homelessness, with measures that could have an impact on smaller communities across Eastern Ontario.
Finance Minister François-Philippe Champagne tabled the 2026 federal budget Thursday, outlining $142.1 billion in proposed new spending and tax measures over five years.
Affordability and cost of living
One of the biggest announcements is a proposed one-time increase to the Canada Groceries and Essentials Benefit early next year.
Eligible families of four could receive up to $679, while eligible single Canadians could receive up to $339.
The government is also proposing expanded support for low-income workers and caregivers, including changes that could allow more part-time and seasonal employees to qualify for benefits.
Ottawa says its affordability measures represent $22 billion over five years. While the payments could provide direct relief, they would not necessarily reduce grocery prices.
Recreation and infrastructure
Smaller communities could benefit from $1.5 billion in proposed funding over nine years to build, renovate and improve recreation facilities.
Half would be directed toward arenas and ice rinks, with the remainder supporting other community recreation facilities.
The money could help municipalities facing expensive repairs or upgrades to aging buildings.
The budget also continues support for municipal infrastructure through the previously announced $51-billion Build Communities Strong Fund.
Communities would still need to meet program requirements, and no specific funding allocations for Lanark, Leeds or Grenville municipalities have been confirmed.
Farming and agriculture
Farmers and food producers are another focus, with Ottawa outlining a $3.2-billion food security strategy.
The plan aims to strengthen Canadian food production, improve supply chains and increase competition in the grocery sector.
Agricultural businesses affected by trade disruptions could also benefit from expanded financing, including support through Farm Credit Canada.
The measures are intended to help Canadian producers remain competitive while reducing vulnerabilities in the country’s food supply.
Plan to end homelessness
The federal government is also setting a goal of ending homelessness in Canada within 10 years.
The budget proposes $11.2 billion over four years, beginning in 2027–28, to expand housing and services for people experiencing homelessness.
The plan includes supportive and transitional housing, with Ottawa seeking provincial and territorial participation in funding ongoing services, including mental health and addictions supports.
For smaller communities facing housing shortages, the impact will depend on local projects, funding agreements and access to support services.
Also in the budget:
- Canada–U.S. trade: Continued assistance for tariff-affected businesses and efforts to expand exports beyond the American market.
- Defence: New military equipment, drone technology and investments in Canada’s defence industry.
- Health care: Additional support for mental health, addictions, home care and community services.
- Energy: Investments in electricity generation, transmission systems and clean energy infrastructure.
- Critical minerals: Funding to expand production and processing of minerals used in technology and manufacturing.
- Technology: Support for artificial intelligence, research, innovation and youth employment.
- Transportation: Plans to expand electric vehicle charging infrastructure and modernize trade corridors.
- Canadian culture and media: Additional support for Canadian content production and proposed changes to journalism tax credits.
- Immigration: Permanent resident targets of 380,000 annually from 2027 through 2029.
The cost of the budget:
The federal government is proposing $142.1 billion in new spending and tax measures over five years.
Ottawa projects a $62.3-billion deficit for 2026–27, about $3 billion lower than forecast in the spring economic update.
The government expects annual deficits to gradually decline, reaching $52.9 billion by 2030–31. That would mean Canada continues borrowing billions of dollars annually, despite the projected improvement.
Written by: Bob Perreault
