Federal Government Budget Highlights

November 9, 2026

Budget 2026 includes more than $22 billion over five years in new measures to help Canadians manage the cost of living, keep more money in their pockets, and build a stronger future. These measures will help workers get ahead, support families with the cost of everyday essentials, lower household energy costs, and ensure economic growth creates opportunities for Canadians across the country.

Budget 2026 Highlights:

• Enhancing the Canada Groceries and Essentials Benefit with a 2027 Supplement and expanding Nutrition North Canada to help lower the cost of food for Canadians.
• Lifting an estimated 240,000 people out of poverty through the new Build Canada Workers Benefit, keeping more money in workers’ pockets and ensuring hard work pays.
• Helping nearly 22 million Canadians keep more of what they earn through the middle-class tax cut, saving a two-income family up to $840 this year.
• Reducing household costs by supporting up to one million energy-efficient home retrofits, including through the new National Heat Pump Rebate, helping Canadians lower their monthly energy bills.
• Temporarily suspending the federal fuel excise tax, reducing costs at the pump by up to 10 cents per litre for gasoline and up to 4 cents per litre for diesel.

National Electricity Strategy

Over $50B*

• Doubling Canada’s electricity supply by 2050.
• Reducing emissions and accelerating electrification and competitiveness.

Between 2028 and 2050, an additional 60,000 jobs could be added to the sector.

Housing

$44.7B*

• Putting Canada on a path to end homelessness.
• Boosting capital in Build Canada Homes to supercharge housing construction and close the affordable housing supply gap.
• Improving the efficiency of the homebuilding sector, including through support to firms, modernising housing data, and establishing common standards for modern construction methods.

Additionally, Canada is investing in housing-enabling infrastructure through the Build Communities Strong Fund, which is expected to support 42,000 jobs per year on average over the next 10 years.

Investing in workers and skills

Canada needs skilled workers to build the homes, infrastructure, and energy projects that will drive growth. Team Canada Strong will recruit, train, and hire up to 100,000 Red Seal workers, while six new Workforce Alliances will bring industry and workers together to address skills needs.

The federal government has also introduced $3.5 billion in rapid-response supports for workers and employers affected by trade disruptions.

Young Canadians are also gaining opportunities to work and build careers, with 175,000 work and skills development opportunities in 2026-27 through Canada Summer Jobs, the horizontal Youth Employment and Skills Strategy, and the Student Work Placement Program.

Budget 2026 will build on this work through a Partnerships for Indigenous Workforce Readiness Fund to support Indigenous employment and skills development.

Together, these measures help ensure that all Canadians have a chance to acquire new skills, find rewarding careers, and help keep our economy strong and growing.

Quick Facts

• Canada’s economy grew by 3.3% in the second quarter, the fastest pace in the G7. 
• The IMF expects Canada to be the second-fastest growing economy in the G7 in 2027. 
• Canada is expected to maintain one of the lowest deficit-to-GDP ratios in the G7, signalling fiscal strength and the capacity to invest in the future.
• More Canadians are benefiting from labour market strength. Over the past year, Canada’s economy has added 214,000 jobs in private employment, while the unemployment rate has fallen to 6.5%, near its lowest level in two years. 
• Since the end of 2024, Canada has also created nearly twice as many jobs per capita as the United States.
• Rising productivity is helping lay the foundation for stronger wage growth and higher living standards, with productivity increasing by 1.2% over the last year, compared with average growth of just 0.1% following the pandemic.
• Foreign direct investment in Canada is at its highest level in nearly two decades. Canada attracted $98 billion in foreign investment in 2025 and has led the G7 in direct investment inflows per capita since early 2025.  
• Canada has the lowest tax burden on new investment in the G7, encouraging businesses to invest, innovate, and grow in Canada. 
• Nominal goods and services exports to countries other than the United States increased by $33 billion in 2025 and are on pace to rise by a further $57 billion in 2026, as more Canadian businesses reach new markets.
• Canada is the only G7 country with free trade agreements with every other G7 member. Through 15 agreements in force covering 51 countries, Canadian businesses already have preferential access to 1.5 billion consumers and economies representing two thirds of global GDP.  
• Measures to make life more affordable are working. The share of household income needed to cover housing costs has fallen by roughly a quarter, asking rents have dropped for two consecutive years, and the average cost of child care has fallen around 30% nationwide since 2019. 

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