On November 5, 2026, the Government of Canada presented its 2026 budget, entitled “Masters of Our Own House” (Maîtres chez nous). Against an economic backdrop marked by trade tensions and cost-of-living pressures, the budget prioritizes investments in housing, infrastructure, public services and culture that are relevant to the nonprofit sector.
Several measures affect community organizations, foundations and institutions, particularly in the areas of affordable housing, homelessness prevention, mental health, support for Indigenous communities and access to culture. This article provides an overview of the key highlights.
Key Highlights
- An additional $13 billion over ten years, beginning in 2028–2029, for Build Canada Homes, bringing its total capitalization to $45 billion and aiming to build 200,000 homes over the next decade.
- A partnership in Winnipeg mobilizing more than $1 billion in capital to address homelessness, including up to $800 million for 2,000 transitional and permanent supportive housing units.
- $1.2 billion in 2027–2028 to extend federal agreements with provinces and territories related to mental health, addictions, and home and community care.
- $1.5 billion over nine years to build, expand and renovate arenas and community recreational facilities.
- $32 billion over ten years for First Nations housing and infrastructure.
- $783.1 million over five years to support national museums and other federal cultural and heritage institutions.
- $134 million over four years for the Local Journalism Initiative, followed by $41 million annually.
Government of Canada Budget 2026 at a Glance
Community Infrastructure, Sports and Recreation
- $1.5 billion over nine years through the Build Strong Communities Fund: $750 million for arenas and $750 million for other community recreational facilities.
- Continued investments in infrastructure needed by growing communities, particularly to support residential development.
Affordable Housing and Homelessness
- An additional $13 billion over ten years, beginning in 2028–2029, to increase the capital of Build Canada Homes, bringing its total capitalization to $45 billion.
- A target of 200,000 homes over the next decade through Build Canada Homes investments; at least 10% of its enhanced funding would be reserved for Indigenous housing projects.
- The new Integrated Support Fund appears to be the most strategically significant measure. The budget provides $1.8 billion over four years, beginning in 2027–2028.
It is intended to fund projects that bring together the following elements under an integrated approach:
- Housing;
- Health and mental health services;
- Addiction treatment;
- Social support;
- Transitional and supportive housing;
- Adaptation of existing buildings.
Other measures addressing homelessness include:
- $3.6 billion over four years, followed by $6.4 billion in subsequent fiscal years, for the construction of supportive and transitional housing, particularly for people experiencing homelessness.
- $2 billion over two years for the construction of community mental health and addiction treatment facilities.
- $2.1 billion over three years, followed by $4.4 billion in subsequent fiscal years, to renew the Reaching Home program and the program for veterans, supporting homelessness prevention, assistance and community services.
- $1.7 billion over three years, followed by $3.9 billion, through the Canada Housing Benefit, to provide direct rental assistance, particularly to prevent homelessness.
Food Security
- The Local Food Infrastructure Fund is being renewed with $124 million over three years, beginning in 2027–2028, in addition to the $20 million mentioned for food banks.
It may support:
- Food purchases;
- Community kitchens;
- Greenhouses;
- Storage facilities;
- Food processing equipment;
- Vehicles and transportation equipment;
- Local food distribution infrastructure.
This is likely one of the measures most directly accessible to community nonprofits, food banks and food security organizations.
Health and Social Services
- $1.2 billion in 2027–2028 to extend federal-provincial-territorial funding agreements related to mental health, addiction treatment, and home and community care until March 31, 2028.
- $10 million over two years, beginning in 2027–2028, to support research into new treatments at the Praxis Spinal Cord Institute.
- A proposal to make the Canada Caregiver Credit fully refundable; support could reach $1,260 for an eligible individual.
Culture, Festivals and Heritage
Several funding allocations directly affect cultural organizations:
- $10 million in 2027–2028 for the Building Communities Through Arts and Heritage program;
- $15 million for the Canada Arts Presentation Fund;
- Planned support for local festivals, cultural events and performing arts;
- $20 million over four years, followed by $5 million annually, to renew the Canada Book Fund;
- Creation of a national digital collection with $32.2 million over four years.
First Nations and Indigenous Communities
- More than $32 billion over ten years to provide long-term funding for First Nations housing and infrastructure.
- An additional $1.7 billion over five years, beginning in 2027–2028, to accelerate shovel-ready housing projects on reserves.
- $806.7 million over five years, beginning in 2027–2028, to renew funding for the implementation of the Act respecting First Nations, Inuit and Métis children, youth and families.
Arts, Culture and Heritage
- $783.1 million over five years, beginning in 2026–2027, for Canada’s national museums, the National Battlefields Commission, the National Arts Centre, and Library and Archives Canada.
- $76 million in 2027–2028 to renew the Canada Strong Pass, which promotes access to cultural and heritage sites.
- $46.3 million over five years to make free admission to national museums permanent for children and young people under the age of 25.
- Consultations have been announced on a potential Canada Creativity Credit, which could provide tax recognition for up to $45,000 in eligible artistic income per year. This measure is not yet in effect.
Media and Journalism
- $134 million over four years, beginning in 2027–2028, followed by $41 million annually for the Local Journalism Initiative.
- A proposed expansion of the Canadian Journalism Labour Tax Credit to certain eligible audio and audiovisual news organizations.
Support for Individuals and Inclusion
- A 50% increase in the Canada Groceries and Essentials Benefit for the coming year: a family of four could receive up to $2,570 over one year.
- $8 million over four years, beginning in 2027–2028, followed by $2 million annually, to support organizations promoting equality for women.
- $70 million over two years, beginning in 2027–2028, to renew the Menstrual Equity Fund and promote free access to menstrual products.
- The budget allocates $136.3 million over four years to implement Canada’s Black Justice Strategy.
The Federal 2SLGBTQI+ Action Plan would be renewed with:
- $60 million over four years, beginning in 2027–2028;
- Followed by $15 million annually.
The funding is intended to support community projects, awareness initiatives, research and stronger networks. The budget explicitly states that this measure aims to provide greater stability for 2SLGBTQI+ organizations.
The budget provides approximately $82 million over four years to renew funding for nonprofits that assist temporary foreign workers.
Environment and Energy Efficiency
- $2 billion to support energy-efficient renovations for one million homes, with a goal of achieving more than $1 billion in annual savings on energy bills.
- $65 billion in investments under the National Electrification Strategy to increase Canada’s electricity generation and transmission capacity.
Would you like to learn more about the Government of Canada’s 2026 Budget ? Consult the official budget document.
