Ottawa Unveils Its Economic Statement: Key Measures to Know

Economy, Innovation and Business Support

Sovereign Investment Fund

$25B to Create the Canada Strong Fund

• $25B over 3 years to create the Canada Strong Fund, Canada’s first sovereign investment fund, managed by an independent Crown corporation, investing in partnership with the private sector in strategic Canadian companies and projects in energy, infrastructure and advanced manufacturing, in which Canadians can participate directly through an investment product.

$957.8M to Protect Coastal Economies

• $957.8M over 5 years, starting in 2026-2027, to Fisheries and Oceans Canada for the Small Craft Harbours Program, to ensure the repair and maintenance of these essential infrastructures for coastal communities and commercial fishing, in addition to the existing annual budget of $90M already allocated.

$11M for a First Investment Summit

• Organization of the very first Canadian Investment Summit in September 2026, showcasing Canada as a premier destination for global capital, focused on the sectors of energy, critical minerals, artificial intelligence, defence and infrastructure.

Permanent Tax Exemption for Employee Ownership Trusts

• Proposal to make permanent the tax exemption for employee ownership trusts to facilitate the purchase of a business by employees and offer an additional option for succession planning.

Development of a Government-Wide Competition Plan

• Launch of a government-wide competition plan to ensure all federal policies prioritize competition, with the aim of curbing cost-of-living increases and stimulating productivity.

Employment

Training and Skilled Trades

$6B over 5 Years for Team Canada Strong

• $2B over 5 years, starting in 2026-2027, and $262M per year thereafter, for recruiting young people ready to take on a promising career in the skilled trades.
• $331M over 5 years, starting in 2026-2027, and $18M per year thereafter, to modernize the Red Seal program and expand the Union Training and Innovation Program.
• $3.4B over 5 years, starting in 2026-2027, and $468M per year thereafter, to eliminate financial barriers for apprentices during training through the Apprenticeship Training Grant and reward success and accelerate certification with completion bonuses and ongoing support.

$356.2M for Seasonal Workers

• Extension of employment insurance support for seasonal workers in the 13 targeted regions until October 2028.

Enhanced Labour Mobility Deduction

• Increase to $10,000 of the maximum annual amount of expenses that can be deducted, to be indexed to inflation, and modification of the minimum eligible relocation distance from 150 kilometres to 120 kilometres, starting with the 2026 tax year for the labour mobility of tradespeople.

Environment

Climate Change, Biodiversity and Sustainable Finance

$6B to Fight Climate Change

• $3B over 5 years to Global Affairs Canada and $167.9M over 5 years to Environment and Climate Change Canada to provide climate-related assistance to vulnerable countries.
• $2B in paid-in capital and $732M over 3 years to expand FinDev Canada’s concessional financing mechanism, enabling the mobilization of more than $3 in private capital for every public dollar invested in climate projects in emerging markets.

$252.1M to Protect Canadian Whales

• $160.8M over 5 years, plus $3M in remaining amortization, to Fisheries and Oceans Canada and Transport Canada to strengthen the protection of whales and their habitats along all Canadian coasts.
• $91.3M over 5 years, with remaining amortization of $3.7M, and $16.5M per year to implement a regional noise monitoring and management program and to counter other threats to the endangered Southern Resident killer whale population.

Attracting Investment Through Sustainable Finance

• Organization of a sustainable finance conference, hosted by the Canadian Climate Institute, bringing together Canadian and international stakeholders to advance Canada’s sustainable investment taxonomy.

Inclusion of Enhanced Oil Recovery in the CCUS Tax Credit

• Expansion of the Carbon Capture, Utilization and Storage (CCUS) tax credit to enhanced oil recovery, with rates of 30% for direct air capture, 25% for any other capture equipment and 18.75% for transport, storage and use, generating $395M in federal revenues over 4 years.

Housing

Residential Construction and Homeownership

$41.9M over 5 Years for Innovation in Residential Construction

• $41.9M over 5 years, starting in 2026-2027, to the National Research Council Canada, the Standards Council of Canada and Innovation, Science and Economic Development Canada, to modernize and streamline the regulatory framework, strengthen innovation capacity in the residential construction sector and improve housing market responsiveness.

Changes to Mortgage Insurance Rules to Facilitate Multi-Unit Construction

• Changes to mortgage insurance rules to allow private sector mortgage insurers to offer mortgage loan insurance for multi-unit buildings with five to eight units, to stimulate competition and broaden the range of lender choices.
• Changes to mortgage insurance rules to give mortgage insurers more flexibility to offer products to borrowers constructing buildings with three or four units, to increase financing supply for missing middle housing.

Acceleration of Low-Cost Loan Disbursement to Speed Up Housing Construction

• Acceleration of the disbursement of low-cost loans worth more than $7B under the Apartment Construction Loan Program, to speed up the construction of up to 16,500 rental housing units.

Extension of the Grace Period for RRSP Repayment Under the HBP

• Extension to 5 years of the grace period during which homeowners are not required to begin repaying funds they have withdrawn from their registered retirement savings plan (RRSP) under the Home Buyers’ Plan, for participants who make their first withdrawal between January 1, 2026 and December 31, 2028.

Income

Tax Support for Households

Reduction of the Base Canada Pension Plan Contribution Rate

• Amendments to the Canada Pension Plan to reduce the base contribution rate from 9.9% to 9.5%, effective January 1, 2027.

Simplified Access to the Disability Tax Credit

• $42.5M over 5 years, starting in 2026-2027, to the Canada Revenue Agency to administer the necessary changes to facilitate access to the Disability Tax Credit by simplifying the application process for individuals with certain long-term medical conditions and empowering provincial and territorial public guardians and trustees as well as an expanded list of professionals to certify eligibility.
• These changes would provide tax relief under the Disability Tax Credit and an increase in federal benefit payments totalling $345M over 6 years, and $86M per year thereafter, starting in 2025-2026.

$18.7M over 3 Years to Help With Tax Filing

• $18.7M over 3 years, starting in 2026-2027, to the Canada Revenue Agency for the renewal and expansion of the Community Volunteer Income Tax Program (CVITP) subsidy.

Modernization of the Tax Framework for Charities

• Modernization of the framework applying to the charitable sector in 2026-2027, building on advances in technology and digitization, feedback from relevant organizations and best practices adopted by other G7 countries.

Consideration of Expanding the Canadian Journalism Labour Tax Credit

• Possible consultation on expanding the Canadian Journalism Labour Tax Credit to cover audio and audiovisual news production.

Defence

Defence and National Security

Renewal of Operation UNIFIER

• $2B over 3 years to the Department of National Defence, the Communications Security Establishment, Global Affairs Canada and the Canadian Security Intelligence Service to support Operation UNIFIER, which strengthens Ukraine’s military capabilities.

Establishment of the Defence Investment Agency

• $103.8M over 5 years, starting in 2026-2027, and $22.3M per year thereafter, to establish and operate the Defence Investment Agency (DIA) as an autonomous entity.

Strengthening Training Capacity of the Canadian Armed Forces

• $250M over 5 years, starting in 2026-2027, and $45M per year thereafter, to strengthen the skilled trades training capacity of the Canadian Armed Forces.

Safety and Community

The Community Safety Program

$75M for Canada’s Community Safety Program

• $75M over 5 years, starting in 2026-2027, to Public Safety Canada for Canada’s Community Safety Program, to help organizations strengthen their physical security and build safer and more inclusive communities, in response to the increase in hate crimes.

Protecting Communities from Financial Crime: Establishment of the Financial Crimes Agency

• $352.7M over 5 years, starting in 2026-2027, with remaining amortization of $57.8M, and $82.1M per year thereafter to the Financial Crimes Agency, the first federal body mandated to investigate serious and complex financial crimes and recover the proceeds of crime.
• $46.2M over 5 years and $11.5M per year thereafter to the Public Prosecution Service of Canada.
• $19.6M over 5 years and $1.5M per year thereafter to the Department of Finance Canada.

Combatting Illicit Financial Activities and Extortion

• Granting of a new directive power to the Minister to protect national security and the integrity of Canada’s financial system.
• Strengthening FINTRAC’s capacity to refuse or revoke the registration of money services businesses (MSBs).
• Prohibition of cryptocurrency ATMs.
• $17.9M over 4 years, starting in 2026-2027, to strengthen FINTRAC’s capabilities in detecting and disrupting illicit financing related to extortion and fentanyl trafficking, and to advance its technology and artificial intelligence roadmap.

Indigenous Communities

Development and Safety of First Nations, Inuit and Métis Communities

$601M for Primary and Secondary Education

• $601M in 2026-2027 to Indigenous Services Canada to support quality, culturally adapted primary and secondary education on reserve, meeting the needs of First Nations youth so they can fully participate in Canada’s skilled workforce.

$700M over 6 Years for Child and Family Protection

• $700M over 6 years, starting in 2025-2026, to continue helping Indigenous communities put in place their own child and family protection measures, through the exercise of the powers conferred by the Act respecting First Nations, Inuit and Métis children, youth and families.

$2.8B over 5 Years to Support Housing Supply

• $2.8B over 5 years, starting in 2026-2027, reallocated to Canada Homes, Crown-Indigenous Relations and Northern Affairs Canada, Indigenous Services Canada and Housing, Infrastructure and Communities Canada to support housing supply and align support offered in the current housing context.

$794M for Health Products and Services

• $794M in 2026-2027 to support the Non-Insured Health Benefits Program, which covers a range of health products and services for First Nations and Inuit, including medical travel, pharmaceuticals and mental health care services.

Sports

Supporting Canada's Sport Ecosystem

$755M over 5 Years for Professional Sport Development

• $755M over 5 years starting in 2026-2027, and $118M per year thereafter, to Canadian Heritage to support the national sport system:
  • $50M over 5 years to host more world-class sporting events in Canada.
  • $45M over 5 years and $8M per year thereafter, to help our athletes train, compete and excel at the highest level.
  • $660M over 5 years and $110M per year thereafter to National Sports Associations to encourage increased Canadian participation in sport.

Supporting the 2026 FIFA Men’s World Cup

• $146M to support the hosting of the 2026 FIFA Men’s World Cup.
• $473M over 5 years, including $205M in 2026-2027, in proposed funding to Public Safety and Invest in Canada to support security activities for the 2026 FIFA Men’s World Cup and leverage the event to promote investment.

Agri-Food

Ensuring Food Safety

$24M for Pest Control Products

• $24M over 4 years, starting in 2027-2028, and $9M per year thereafter, to enable Health Canada to strengthen its economic analysis capacity and optimize pest control product review processes, with costs to be fully recovered through annual fees.
• Amendments to the Canadian Food Inspection Agency Act and the Pest Control Products Act to take into account food security and the cost of food products.