May 8, 2026

Spring Economic Update 2026 is the next step in the federal government’s plan to build Canada. 

The stated goal is to deliver targeted relief to make life more affordable, support workers, and accelerate the construction of homes and major infrastructure. It also aims to strengthen Canada’s competitiveness and economic growth while investing in strong, safe communities across the country. 

Highlights Include:

Learn, train, and find meaningful opportunities by:

Creating new opportunities for young Canadians: Launching Team Canada Strong, the new $6 billion nationwide effort to recruit, train, and hire 80,000 to 100,000 new Red Seal skilled trades workers in the next five years, aligning with Canada’s housing, infrastructure, and defence needs. This measure will help:
- Recruit:
  - We will deploy $2 billion to support young Canadians with paid, job-ready placements that lead directly into registered apprenticeships.
  - This investment will also support the launch of the Build Canada Apprenticeship Service to provide up to $10,000 for an apprentice’s first-year salary, match apprentices to job opportunities, and offer direct navigation and support to help employers hire, train, and retain apprentices.
- Train:
  - We will boost and modernize apprenticeship training to expedite Red Seal certification with $331 million in funding over five years, starting in 2026–27, and $18 million ongoing.
  - We will digitize the Red Seal Program, introducing online exams, digital logbooks, and secure credentials to reduce certification timelines, including by creating a single national registered apprenticeship number.
  - We will expand the Union Training and Innovation Program to enable union-run training centres to upgrade facilities, expand capacity and invest in modern equipment.
- Hire:
  - We will provide $3.4 billion over five years, starting in 2026–27, and $468 million ongoing to address the challenges that can stop apprentices from completing their training and moving into permanent jobs.
  - We will offer a one-time $5,000 apprenticeship completion bonus to those who obtain certification in a Red Seal trade.
  - With the Apprenticeship Training Grant, we will provide a $400 weekly top-up while apprentices attend mandatory in-class technical training.
  - This represents a total payment of up to $16,000 per apprentice, paid in addition to Employment Insurance.
Making education more affordable: Extending for the 2026–27 academic year the increases to Canada Student Grants and interest-free Canada Student Loans—571,000 students are expected to benefit from the increase to non-repayable grants, and 422,000 students could benefit from the weekly loan limit increase.

For those already in the workforce, we’re making it easier to find meaningful opportunities:

Helping tradespeople go where the work is: Enhancing the Labour Mobility Deduction will make it more affordable for skilled workers to travel to where jobs are available.
Encouraging shared ownership: Making the Employee Ownership Trust tax exemption permanent will help more workers share in the success of the businesses they help build.

The Plan Includes:

Building Canada Strong

Canada Strong Fund: Introducing Canada’s first national sovereign wealth fund, to invest in key, strategic Canadian projects and companies, benefitting Canadians through jobs, economic growth, and greater security. Canadians will also have a stake in the projects themselves, allowing them to receive financial returns as we will build Canada strong together.
Major Projects Office: 21 nation-building initiatives that will connect, diversify, and propel our economy, supporting 60,000 jobs during construction and over $125 billion in new investment.
Defence Industrial Strategy: a whole-of-government approach to transform Canada’s defence industry. The strategy will prioritise Canadian suppliers and materials, invest in Canadian innovation and commercialisation, and streamline procurement to give businesses a consistent and predictable demand outlook.
Defence Investment Agency: Agency will be responsible for re-equipping our military and driving economic benefits for Canada through the government’s generational investment in defence.
Canada’s First Investment Summit: Positioning Canada as the premier investment destination in fall 2026.
Sustainable Finance Conference: This event will bring together domestic and international stakeholders to promote progress on the Canadian taxonomy and discuss sustainable investment opportunities in Canada.
Auto Strategy: Rewarding the production of made-in-Canada vehicles and harnessing our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future, positioning Canada to become a global leader in electric vehicle (EV) production.
Nature Strategy: To help conserve 30 per cent of Canada’s lands and waters by 2030, ensure our industrial strategies complement our conservation efforts, and advance actions to mobilise capital for nature.

Supporting Workers

Team Canada Strong: Empowering young Canadians by launching a new nationwide effort to recruit, train, and hire 80,000 to 100,000 new skilled trade workers by 2030-31. This initiative creates new opportunities for Canadians and attracts the workers needed to build more homes and major projects at speed and at scale.
Employee Ownership Trust Tax Exemption: Making the Employee Ownership Trust Tax Exemption permanent to empower workers to participate directly in building Canada strong.
Lowering Canada Pension Plan Rate: Reducing the contribution rate of the base Canada Pension Plan from 9.9 per cent to 9.5 per cent, effective January 1, 2027, translating into annual savings of about $133 for an employee earning $70,000 a year, with equivalent savings for their employer.

Making Life More Affordable

Canada Groceries and Essentials Benefit: Providing support to over 12 million Canadians to purchase groceries and essentials (payments beginning June 5).
Pausing Fuel Excise Tax: Until Labour Day, saving Canadians up to 10 cents/L on gasoline and 4 cents/L on diesel.
Streamlining Disability Tax Credit: Making the application process easier for individuals with certain long-lasting medical conditions.
Bringing Down Mobile Plan Costs: Mobile plans that once cost over $100 now cost far less, with more data for Canadians.
Capping Non-Sufficient Fund Fees at $10: Helping Canadians pay less in banking fees and strengthening consumer protections.
Reducing Development Charges and Providing Targeted GST Relief for Homebuyers: Lowering the cost of housing and make it easier for Canadians to purchase a home.
Cutting Red Tape to Build Homes Faster: Streamlining rules and modernising building codes will make it easier to construct new homes, including factory built and modular housing.
Supporting Innovation in Construction: Investing in new building technologies will help reduce costs and speed up construction.
Accelerating over $7 billion in Low-Cost Financing to the Canada Mortgage and Housing Corporation: More affordable financing will help builders move projects forward sooner—getting rental homes on the market faster.
Helping Those Most in Need: Extending support for people experiencing homelessness and ensuring survivors of gender-based violence have access to safe housing.

Safer and Stronger Communities

Investing in Sport—from Playground to Podium: Investing $755 million to expand access to sport, creating opportunities for Canadians to build meaningful relationships within their communities, making full use of existing and new infrastructure, and to support Canada’s world class athletes who inspire pride and unity, as we celebrate their accomplishments as a nation.
Investing in Indigenous Communities: Providing $4.3 billion in funding for essential services, including health benefits and culturally relevant education, to support stronger, healthier communities.
Maintaining Small Craft Harbours: Nearly $1 billion to repair and modernise critical infrastructure for fishers across the country, protect livelihoods, and empower coastal communities.
Financial Crimes Agency and National Anti–Fraud Strategy: Standing up a best-in-class agency to combat financial crimes and protect Canadians.

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