Chapter 4: 
A strong and united Canada

Being sovereign means building a country where Canadian culture in all its diversity and creativity thrives. That means supporting our major institutions—our museums, galleries, granting bodies for film, music, and art, and CBC/Radio-Canada. It means using our Presidency of the Francophonie to promote the French language and culture in all formats and enhancing discoverability.

Canada has a rich and storied past, with a simple founding insight: unity does not mean uniformity. Canada was an unlikely country, born of complexity, necessity, and a collective will to unite in the face of adversity. Over time, we have grown to be a strong and successful nation, one greater than the sum of its parts. 2027 will be a special year of commemoration, when we will celebrate the 160th anniversary of the nation we call home.

It is a moment not only to celebrate how far we have come, but also to shape the country we want to become. As Canada celebrates its 160th anniversary, Canada's new government is investing in the stories, places, and experiences that connect Canadians to their country and to one another. Our culture lives in the books we read to our children, the music we know by heart, and the rinks, libraries, and festivals where neighbours come together.

The land we share is also part of who we are as Canadians. In a country as vast as ours, railways, roads, ports, ferries, and airports are essential to bringing us together. This infrastructure is the connective tissue, the iron spine, that has turned a vast geography into a united nation.

As more of what we watch, read, and listen to is coming from beyond our borders, Canadians deserve to see themselves in their own stories. Our cultural sovereignty depends on Canadian artists and creators being able to tell those stories, express our perspectives, and ensure Canadians continue to see themselves reflected in the culture they experience. Budget 2026 is making investments that will deepen connections across regions, advance reconciliation, reinforce Canada's sovereignty, and build a lasting legacy for future generations.

We are working to realise Canada's potential, building a country Canadians can continue to be proud of for generations to come. A country where every Canadian has a warm home. Where no Canadian is left behind. A strong, sovereign, diverse Canada where we are all masters of our destiny.

This is why we are investing in the cultural institutions and the creatives that tell our stories and the transportation networks that connect us to one another. Because sovereignty means building a country where Canadian culture thrives, where Canadians see themselves in their stories, music, songs and movies, and where we are connected—both physically and culturally—to build Canada Strong.

Taking action in Budget 2026

Budget 2026 connects Canadians with one another, their communities, and the country we share, including:

• Helping Canadians celebrate Canada's 160th anniversary through local festivals, performing arts events, and arts, cultural, and heritage activities.
• Modern recreational facilities and ice rinks that give communities better places to play sports, stay active, and come together.
• Exploring a new Canada Creative Credit to foster creativity, artistic production, and cultural entrepreneurship in Canada.
• More opportunities for Canadians to explore their country, with another summer of the Canada Strong Pass and permanent, year-round free admission to national museums for children and youth under 25.
• Stronger support for Canadian stories, creators, and trusted local journalism.
• Better ferry, passenger rail, and bridge connections to help move people and goods quickly, affordably, and reliably.
• More homes and stronger essential infrastructure in Indigenous communities, backed by long-term, predictable investments.
• Better access to education, health care, and other essential supports for Indigenous children and families.
• Greater equality for people and communities that continue to face discrimination and systemic barriers.

These measures build on work already underway to strengthen communities, advance reconciliation, and expand opportunity for Canadians:

• Families and young people are exploring more of Canada through the Canada Strong Pass.
• Investments in sport are helping Canada's world-class athletes compete and win, and giving more Canadians opportunities to stay active.
• Festivals, national celebrations, and community-driven cultural events are giving Canadians more ways to come together and take part in the cultural life of their communities.
• Long-term, predictable funding is helping Indigenous communities plan ahead, invest in their priorities, and deliver essential services.

4.1 Bringing Canadians together by celebrating our stories and places

Canada's culture, heritage, and traditions connect us to one another and the country we share. Through the parks and museums where we gather, the stories we tell, and the history and traditions we share, these connections help us better understand the people, places, and experiences that shape Canada.

Arenas, community centres, pools, and libraries are where children learn to skate and swim, families meet their neighbours, and newcomers find their footing. Alongside museums, archives, and historic sites, they are among Canada's most important shared civic spaces. Many of these spaces are aging, and too many communities lack them altogether.

Budget 2026 will help build, expand, and modernise the places where Canadians gather to play, create, and connect by investing in what brings Canadians together, protecting our natural and cultural heritage, celebrating Francophone communities, supporting Canadian stories and journalism, supporting young community leaders, and honouring the service of veterans and RCMP officers.

No matter where you live, you should be able to experience the best of what Canada has to offer.

Celebrating Canada's 160th anniversary

Building on the legacy of Canada 150, Canada 160 celebrations will bring together the stories, spaces, and experiences that strengthen national pride and belonging, and leave a lasting legacy in communities across the country. Canada 160 is an invitation to every Canadian to read and tell our stories, gather in the places that bring us together, and celebrate what it means to be Canadian.

• Budget 2026 proposes to provide $300 million in 2027-28 for a suite of programs that will support the stories, spaces, and experiences that bring Canadians together. The Canada 160 Fund will be a flagship initiative to mark Canada's 160th anniversary. The Fund will support signature experiences to celebrate this anniversary, support the iconic Heritage Minutes, the Trans Canada Trail—the world's longest hiking network spanning over 30,000 kilometres—and fund community spaces through an existing $100 million sourced through the Build Communities Strong Fund.

Festivals, hometown games, concerts, and community celebrations turn local connections into lasting memories. They bring together people who might otherwise never meet, across regions, generations, languages, and backgrounds, and remind us of all that we share in common as Canadians.

As we mark Canada's 160th anniversary, we want to celebrate the communities that have shaped our country and continue to define who we are today. From the Moosehide Gathering in Yukon, to the Festival Western de St-Tite in Québec, to the Deer Lake Strawberry Festival in Newfoundland and Labrador, these festivals give life to communities, and offer Canadians an opportunity to come together and celebrate the history, traditions, and people that make their communities unique.

• Budget 2026 proposes to provide $10 million in 2027-28 for the Building Communities through Arts and Heritage program and $15 million for the Canada Arts Presentation Fund, to support local festivals and performing arts events across Canada in honour of Canada's 160th anniversary.

Building on the success of these festivals in 2026, the following festivals, among others, could receive additional funding in 2027-28, subject to application to the fund:

Revitalising recreational facilities and ice rinks

Arenas, ice rinks, and recreational facilities are at the heart of many communities across Canada. They are where so many Canadians first learn to skate, where young Canadians gather after school and adults lace up after work, and where families and friends huddle in the stands for the sports they love. But many of these facilities are aging and need significant investment to remain safe, accessible, and ready to serve their communities for years to come. To renew these important community spaces:

• Budget 2026 proposes to provide $1.5 billion over nine years through the Build Communities Strong Fund to support the construction, expansion, retrofit, and rehabilitation of community recreational facilities and ice rinks across Canada. This includes $750 million for the ice rinks and $750 million in additional funding for other community recreational facilities. These investments will help extend the life of aging facilities and ensure communities have modern, welcoming places to come together, compete, and play.

Canada Creative Credit

Artists, creators, musicians, and writers produce the stories, songs, and connections that stitch our country together. From Céline Dion to Jacob Tierney, Margaret Atwood to Edward Burtynsky, Canada continually raises the bar with its artistic output, impact, and creativity on the global stage.

But before Canadian artists reach audiences around the world, they have to be able to build a life around their art here in Canada. For emerging artists, that means having the opportunity to experiment with ideas, hone their craft, and create new work. A creator's work begins long before a book reaches a shelf, a song finds an audience, or a curtain rises. Supporting the next generation means valuing the creative process and creating the conditions for Canadian artists to develop their craft and contribute to Canada's cultural life.

Preserving Canadian culture means creating the conditions for the next generation of Canadian artists to live from their art, build their craft, and one day, bring it to the world.

Canada supports artistic research, creation, production, and professional development through the Canada Council for the Arts, which awarded over $280 million in grants and prizes to artists, groups, and organisations in Canada in 2024-25. The Canada Music Fund and Canada Book Fund provide further support to bring Canadian works to audiences at home and abroad. We want to build on these foundations by exploring how the tax system can better support artistic creation and help creators build lasting careers in Canada.

Supporting creators is an investment in our identity, our cultural sovereignty, and our economy. Canada's culture sector accounted for nearly 688,000 jobs in the first quarter of 2026. Canadian artists cement our freedom and sovereignty by proudly telling our stories, reflecting our perspectives, and helping Canadians fully see themselves in the culture around them.

Exploring new tax relief for the creative sector demonstrates that the people who write, compose, and create our stories are central to Canada's future—and that Canadian talent should have the opportunity to thrive.

• Budget 2026 announces the government's intention to consult with Canadians and the cultural sector on a new Canada Creative Credit, a new form of tax relief that could support artists as they foster creativity, artistic production, and cultural entrepreneurship in Canada. This credit is expected to take the form of a non-refundable personal income tax credit that would, combined with the Basic Personal Amount, provide tax recognition on up to $45,000 of annual qualifying net business income derived from original and creative artistic works. Details will be announced in the Spring Economic Update 2027.

Arts, culture and the Productivity Mega Deduction

Canada's arts and culture sector brings our stories to life and supports vibrant communities across the country. The new Productivity Mega Deduction will help Canada's producers and storytellers invest in the equipment and technologies they use to create, including cameras, lighting and sound equipment, mixing consoles, editing workstations, projection equipment, and stage infrastructure. This will complement the government's broader efforts to support a strong and competitive Canadian arts, culture, and media sector.

Renewing the Canada Strong Pass, making national museums permanently free for children and youth, and supporting national museums and heritage institutions

Last summer, Canada's new government introduced the Canada Strong Pass to help Canadians discover more of their country for less. By providing free or discounted access to national parks, museums, galleries, and rail travel, the Pass has helped families and young people explore Canada's natural and cultural heritage, supported tourism, and created shared experiences that bring Canadians together.

Canadians immediately took advantage: visits to Parks Canada sites increased by 13%, national museum attendance grew by an average of 15%, and VIA Rail ridership rose by 6.5%. To build on this success and ensure that more people can explore and learn about Canada's history, culture, and natural beauty:

• Budget 2026 proposes to renew the Canada Strong Pass for another summer. The Pass will be enhanced to expand discounted access to Indigenous-led museums and cultural centres. Budget 2026 proposes to provide $76 million in 2027-28 to support this renewal.
• Budget 2026 also proposes to permanently make admission to Canada's national museums free year-round for children and youth under 25. To support this initiative, Budget 2026 proposes to provide $46.3 million over five years, starting in 2026-27, and $11.5 million ongoing to Canada's national museums and the National Battlefields Commission.

Canadian museums preserve and bring to life our stories, history, culture, and languages. We will invest in our national museums and heritage institutions, helping them stand the test of time and ensuring we can pass this legacy on to the next generation.

• Budget 2026 proposes to provide $783.1 million over five years, on a cash basis, starting in 2026-27, to support Canada's national museums, the National Battlefields Commission, the National Arts Centre, and Library and Archives Canada. This investment will help repair and renew aging facilities, protect national collections, and sustain the exhibitions, performances, and services that connect Canadians to our history and culture.
• Budget 2026 proposes to provide $60 million over four years, starting in 2027-28, on a cash basis, to the National Gallery of Canada to expand opportunities for Canadians to access and engage with Canada's arts, culture, and heritage, both in person and online. This funding will support travelling exhibitions and improve digital access to the Gallery's collections, helping Canadians across the country, including those in rural, northern, and remote communities, engage with Canadian and Indigenous art.

Supporting Canadian stories, journalism, and media

Canadian culture finds its fullest expression in the rich stories, experiences, and perspectives we share. Seeing those reflected in the media we watch, listen to, or read strengthens our shared identity and gives Canadian creators more opportunities to flourish. Canadian stories help us understand our country and one another. When a young reader in Iqaluit, Halifax, Saskatoon, or Trois-Rivières picks up a book by a Canadian author, they see their country, and themselves, more clearly.

Building on existing support for the audiovisual sector, local journalism, publishing, libraries, and digital access, these investments will help Canadian creators keep making the music, films, shows, books, and news that reflect who we are, and make that content easier to find wherever Canadians watch, listen, and read. To bring more Canadian stories to readers:

• Budget 2026 proposes to provide $32.2 million over four years, starting in 2027-28, and $9.5 million in future years, to make it easier for Canadians to discover and borrow books by Canadian authors by establishing a free national digital collection. Launching with at least 200 titles in 2027-28, the collection will grow to more than 2,000 titles, with capacity for up to 2 million loans annually by 2031-32. Funding will support licensing, an online lending platform, promotion, and outreach to help Canadian stories reach more readers.
• Budget 2026 also proposes to provide $20 million over four years, starting in 2027-28, and $5 million ongoing to renew the Canada Book Fund so Canadian publishers can bring more Canadian-authored books to readers at home and abroad and give authors, illustrators, translators, and other creators more opportunities to build lasting careers.

And soon, Canadian artists will have a new international stage. Canada will participate in its first-ever Eurovision Song Contest through CBC/Radio-Canada in May 2027 in Burgas, Bulgaria. The contest is an opportunity to showcase Canadian artists to millions of viewers around the world, while giving Canadians a new opportunity to come together at home, watching and listening together.

On the global market, we are also modernising the framework that helps Canadian culture succeed. New policy directions for the Online Streaming Act will ensure that the framework supports Canadian creators and cultural industries while keeping Canadian content accessible and affordable for Canadians. In addition, we recently announced $600 million in immediate support for Canada's audio and audiovisual sectors, providing greater stability for creators, producers, and broadcasters and helping build a more sustainable cultural ecosystem.

Canada's public broadcaster—CBC/Radio-Canada—has been a staple of Canadian art and culture since it began in 1936. We are continuing to invest in CBC/Radio-Canada to ensure that it remains a strong and trusted national institution that connects Canadians, reflects our stories and values, and reinforces a shared sense of identity.

• Budget 2026 proposes to provide an additional $300 million over two years, starting in 2026-27, to CBC/Radio-Canada to strengthen its capacity to meet the evolving needs of Canadians across the country.

Supporting Canadian media goes beyond supporting our national institutions. Local news is vital to helping Canadians understand what is happening in their communities, as well as celebrating people and stories that otherwise risk going unseen. This is especially true in rural and remote communities, where local news can be harder to access.

Trusted local reporting keeps people informed, holds institutions to account, and connects communities. Local journalism is how communities connect, share stories, and build a country where we are masters of our destiny. To strengthen local journalism and help people in rural, remote, and underserved communities access trusted news:

• Budget 2026 proposes to provide $134 million over four years, starting in 2027-28, and $41 million ongoing to Canadian Heritage for the Local Journalism Initiative, supporting independent, reliable, and diverse local news organisations across the country.

Extending the Canadian Journalism Labour Tax Credit

To support fact-based journalism and help sustain high-quality local news, the Spring Economic Update 2026 announced that Canada's new government would extend eligibility for the Canadian Journalism Labour Tax Credit to audio and audiovisual news production. We have consulted stakeholders on the proposed extension; Budget 2026 was informed by that feedback. To help Canadians continue to access trusted local news and information through a wide range of media platforms:

• Budget 2026 proposes to extend the Canadian Journalism Labour Tax Credit to qualifying private audio and audiovisual news organisations, in line with support provided to news organisations that produce written news. They would be eligible for the same temporarily enhanced credit rate of 35% and annual labour expenditure limit of $85,000 per employee. These changes would be effective for labour expenses incurred on or after Budget Day.
• For print journalism, Budget 2026 proposes to renew the temporarily enhanced 35% credit rate for two more years, until December 31, 2028—providing greater stability as the sector adapts to a changing media landscape. Newly eligible qualifying private audio and audiovisual news organisations would benefit from the same enhanced rate through 2028.

These measures would cost an estimated $501 million over five years, starting in 2026-27, and $85 million ongoing.

Promoting Francophone culture

Millions of Canadians speak French, and Francophone culture is a core part of our history, culture, and identity. As an officially bilingual country, and a leading member of the international Francophonie, Canada plays an important role in promoting the French language at home and abroad. Canada's diverse Francophone communities, including Quebecers, Acadians, Franco-Ontarians, Franco-Manitobans, and many others across the country, keep French language and culture vibrant in Canada. We are committed to supporting this integral part of our nation's history, present, and future. It means using our Presidency of the Francophonie to promote the French language and culture in all formats and enhancing discoverability.

In 2028, Canada will host the Francophonie Summit for the first time in two decades, bringing together up to 90 member states in the National Capital Region. With its longstanding Francophone communities and role as the seat of Canada's national, bilingual institutions, the National Capital Region is a fitting place to welcome the international Francophonie to Canada. The Summit will showcase the diversity and vitality of Canada's Francophone cultures and strengthen connections among Francophone communities across Canada and around the world. It will also prioritise the protection and promotion of the French language in the age of social media and artificial intelligence.

We will work closely with provincial, territorial, and municipal partners to deliver a successful summit, led by Global Affairs Canada and supported by federal partners including Canadian Heritage and the Royal Canadian Mounted Police. Hosting the Summit is expected to attract visitors and investment, generate opportunities for Canadian businesses and creators, and support stronger economic and cultural ties across the Francophonie.

• To advance Canada's Francophonie leadership objectives, as well as support the logistics and security required to host the 2028 Francophonie Summit, Budget 2026 proposes to provide $393.2 million over three years, starting in 2027-28, on a cash basis, to 10 departments and agencies.

Preserving the legacy of those who have served Canada

For nearly a century, the National Field of Honour in Pointe-Claire, Québec, has honoured the service and sacrifice of Canadian and allied veterans. More than 20,000 veterans and family members are honourably laid to rest amid the maple trees and granite plaques of this national historic site.

There, families, friends, and visitors can walk its grounds, learn about Canada's military history, and pay their respects. This site has long been operated by the Last Post Fund. But faced with growing financial pressures and the need for significant upgrades and environmental remediation, the Last Post Fund has asked the Government of Canada to assume ownership so that the site may continue to serve as an important link to our past.

We are committed to ensuring that the National Field of Honour remains a dignified and respectful resting place for veterans and that future generations have a place to learn about and honour those who served Canada.

That is why:

• Budget 2026 proposes to provide $15.9 million over four years, starting in 2027-28, and $2.1 million ongoing to Veterans Affairs Canada to acquire, remediate, and operate the National Field of Honour.

Honouring those who served means ensuring that their stories of courage, service, and sacrifice are passed on to future generations of Canadians. In the coming years, Canada will commemorate several defining moments in its military history. These include the 110th anniversaries of the Battle of Vimy Ridge, a foundational moment in Canada's national story, and the Battle of Passchendaele, as well as the 85th anniversary of the Dieppe Raid. These commemorations will bring Canadians together to pay tribute to the men and women who served Canada, deepen public understanding of their contributions, and ensure that their service and sacrifice are remembered for generations to come.

• Budget 2026 proposes to provide $11.4 million over three years, starting in 2026-27, to Veterans Affairs Canada to support the commemoration of defining moments in Canada's military history.

Ensuring we protect the legacy, stories, and history of those who put their lives on the line to protect our communities is essential. For over 150 years, the RCMP has been a part of the Canadian story. The RCMP Heritage Centre, in Regina, Saskatchewan, is a space to discover shared history, reconcile with the past, and celebrate our future. We will designate the RCMP Heritage Centre as a national museum, with resources provided to support this transition. Budget 2026 will enable the RCMP Heritage Centre to access $3 million per year up to 2029-30 to support the transition to becoming a national museum.

Supporting Canada's national parks and historic sites

Canada is home to breathtaking national parks and historic sites where Canadians can walk amid our past. Canada's public institutions help protect and share some of our country's most significant places, collections, and experiences. That is why we are renewing these assets: to ensure they remain available for future generations and continue to help Canadians discover—and rediscover—our home.

• To preserve infrastructure in Canada's national parks, historic sites, and marine conservation areas, Budget 2026 proposes to provide $3.6 billion over 10 years on a cash basis, starting in 2027-28, to Parks Canada to continue managing its capital assets. This builds on the $520 million (on a cash basis) that we announced in summer 2026 to support the rebuilding of Jasper National Park following the devastating 2024 wildfire. Together, these investments will support Parks Canada's management of over 20,000 assets located in more than 200 national parks, national marine conservation areas, and national historic sites.

Investing in our oceans

Canada is shaped by water. From the Great Lakes and the St. Lawrence River to the three oceans that surround us, our waterways connect communities, sustain livelihoods, and link Canada to the world. We are an ocean nation, with the world's longest coastline and a culture shaped by how we enjoy, use, and depend on our waters. That is why Canada has an important responsibility to protect its marine ecosystems, secure its coastal waters, and support a sustainable ocean economy.

In September 2026, we announced a historic $1.2 billion over four years, starting in 2027-28, to better protect our oceans and the life they sustain. These investments will help fast-track major infrastructure projects and expand energy and trade infrastructure along the West Coast in a more sustainable manner. They will:

• Keep Canada's coastal waters safe as marine traffic grows, with $740 million over four years, starting in 2027-28, to ensure Canada can support increasing economic activity on its coasts while protecting the marine environment.
• Protect marine ecosystems and species with an investment of $136 million over four years, starting in 2027-28, building on the $671.6 million recently invested to support marine conservation efforts through the Pacific Salmon Strategy Initiative, the Whales Initiative, and funding for Southern Resident Killer Whales.
• Strengthen Indigenous partnerships and conservation efforts with an investment of $186 million over four years, starting in 2027-28, for the Northern Shelf Bioregion Reconciliation Framework Agreement. This will continue to advance collaborative governance with Indigenous Peoples, conservation, waterway management, and emergency preparedness, and address cumulative environmental and cultural effects that economic development has had in the critical Great Bear Sea region.

Conserving our oceans

Canada is committed to conserving 30% of its marine and coastal areas by 2030. To make further progress toward this conservation target, Budget 2026 announces new investments to establish additional National Marine Conservation Areas and work with Indigenous governments and communities, other levels of government, and the philanthropic community to advance marine conservation in the Arctic. Specifically:

• Budget 2026 proposes to provide $282.7 million over 11 years, starting in 2027-28, on a cash basis, and $18 million ongoing to Parks Canada to establish and operate two new National Marine Conservation Areas.
• Budget 2026 proposes to provide $9.2 million over four years, starting in 2027-28, to Parks Canada, and $10.5 million over four years, starting in 2027-28, to Fisheries and Oceans Canada, to support feasibility assessments for up to three additional National Marine Conservation Areas in the North.

Canada will also continue to explore new conservation agreements in the Arctic, drawing on long-term financing models such as Project Finance for Permanence.

Supporting the Terry Fox Humanitarian Awards

For more than four decades, the Terry Fox Humanitarian Awards have recognised young Canadians who demonstrate courage, determination, and a commitment to serving their communities. To carry forward Terry Fox's legacy of service to others, we are supporting the next generation of community leaders:

• Budget 2026 proposes to provide $10 million in 2028-29 to Canadian Heritage to support the Terry Fox Humanitarian Awards. This investment will help strengthen financial support for post-secondary students from communities across Canada who exemplify Terry Fox's humanitarian ideals.

4.2 Connecting communities

Canada is a vast country that spans three oceans, six time zones, and thirteen provinces and territories. Communities live on remote islands and deep in the northern tundra, while mountain ranges and prairies separate our great cities. That is why we depend on strong connections to keep us united as Canadians. We are strongest when people and goods can move easily, affordably, and reliably between every corner of the country.

Our ferries, passenger rail, and bridges are more than just critical infrastructure. Every day, these vital connections help Canadians reach families, jobs, and essential services, and make it easier to discover more of our country. Budget 2026 strengthens the connections Canadians rely on by investing in the infrastructure that keeps Canada moving.

Supporting ferry and passenger rail services

We support a range of federal transportation services on water and on land that are integral to supporting local economies, connecting communities, and giving people access to essential services across the country.

These include the Eastern Canada Ferry Services through the Ferry Services Contribution Program, remote rail operators through the Remote Passenger Rail Program, and passenger rail service provided by VIA Rail. Building on this support, Budget 2026 proposes to:

• Renew the Ferry Services Contribution Program until 2032. This includes support for activities that will help maintain the service continuity that communities rely on, such as building new terminals at Wood Islands and Caribou and chartering interim replacement vessels. Budget 2026 proposes to provide $1.3 billion over eight years on a cash basis, starting in 2026-27, to Transport Canada to support this renewal.
• Renew the Remote Passenger Rail Program. This funding will preserve essential transportation links for remote and predominantly Indigenous communities by supporting the continued delivery of safe, reliable, and sustainable passenger rail services in Manitoba, Québec, and Newfoundland and Labrador. Budget 2026 proposes to provide $35.1 million in 2027-28 to Transport Canada to support this renewal.
• Provide funding to support VIA Rail Canada's operations and maintenance activities. This will ensure Canadians continue to benefit from reliable passenger rail services that connect communities across Canada. Budget 2026 proposes to provide $1.2 billion over three years on a cash basis, starting in 2027-28, to VIA Rail Canada to support these activities.

Additionally, as announced in September 2026, we are launching the largest investment in VIA Rail's history, with more than $6.6 billion to VIA Rail to acquire and maintain new, modernised passenger rail cars and locomotives for its long-distance, regional, and remote services. And, in line with the government's Buy Canadian Policy, the rail cars will be the first in 40 years to be made right here in Canada, with design and engineering in Saint-Bruno-de-Montarville, Québec, and manufacturing in Thunder Bay, Ontario, and in La Pocatière, Québec.

This investment replaces aging, inefficient, and unreliable cars, some of which are over 70 years old, on current routes. This means VIA Rail can preserve the essential rail connections between communities across Canada.

Advancing the LaSalle Causeway Bridge Replacement Project

Eastern Ontario, which includes Ottawa, Kingston, and surrounding communities, is home to more than 1.8 million residents. This region is a vital economic and transportation corridor and a connection point for communities, workers, and businesses in central Canada. In 2024, the LaSalle Causeway's bascule bridge in Kingston was permanently damaged and subsequently removed and replaced with a temporary modular bridge.

To strengthen connections in Kingston and across Eastern Ontario:

• We will move forward with the LaSalle Causeway Bridge Replacement and Renewal Project using $261.8 million of existing funding, delivering a new movable bridge over the main marine channel and renewing the East and West Bridges. The project will provide a permanent crossing for vehicle, pedestrian, and cycling traffic while maintaining access through the marine channel, supporting the movement of people and goods in Kingston and Eastern Ontario.

Transportation and the Productivity Mega Deduction

Alongside these investments, the Productivity Mega Deduction will help businesses invest in the machinery, equipment, and technology that support more modern transportation networks to connect and unite Canadians, including business investment in air, land, and marine transportation infrastructure. This could include a wide range of investments such as aircraft, vessels, docks, rail track, rail cars, locomotives, bridges, roads, freight trucks, and coach buses.

4.3 Advancing reconciliation with Indigenous Peoples

Advancing reconciliation requires building strong Indigenous communities and ensuring that Indigenous Peoples have the tools, resources, and services needed to achieve their goals. Across the country, Canada is working with Indigenous governments and organisations to strengthen local economies, build housing and infrastructure, improve educational and health outcomes, support children and families, and deliver services that reflect communities' needs.

Budget 2026 builds on this progress through significant investments that support Indigenous-led growth, ensure access to essential services, and provide greater certainty and stability for long-term planning, respecting Indigenous Peoples as equal partners in building our country and continuing to advance reconciliation.

Investing in housing and infrastructure in First Nations communities

Every person living in Canada should have access to clean and safe drinking water, adequate housing, and dependable infrastructure, but for too many First Nations communities, clean water remains out of reach. Closing these gaps is essential to supporting healthy communities, a good quality of life, and economic opportunities.

Clean water is foundational to communities. That is why we are working to end all long-term drinking water advisories on First Nations reserves. To achieve this, we introduced Bill C-37, the proposed First Nations Clean Water Act and, as announced in June 2026, are investing $4.6 billion over five years, starting in 2026-27, to improve water and wastewater infrastructure. Between April 2025 and September 30, 2026, 11 long-term drinking water advisories were lifted, and 44 short-term advisories were lifted before becoming long-term.

In addition to ongoing progress on clean, safe water, more than 1,000 housing and infrastructure projects in First Nations communities on reserve have been completed since Canada's new government was elected in spring 2025. These projects include infrastructure like bridges and roads to connect communities as well as new and upgraded energy systems, hospitals, and schools to help keep communities powered and safe.

New water treatment plant in Okanese First Nation supports lifting of long-term drinking water advisory

In November 2025, Okanese First Nation celebrated the opening of a new, state-of-the-art water treatment plant to support long-term, reliable access to safe and clean drinking water for community members. The new facility features advanced filtration and treatment technologies and will serve key community infrastructure, including the school and community buildings, as well as 52 homes. In May 2026, with the new water treatment plant in place, the community was able to lift a drinking water advisory that had been in place since 2020.

Waabnoong Bemjiwang Association of First Nations micro subdivision project

Wahnapitae First Nation, Nipissing First Nation, Dokis First Nation, and Henvey Inlet First Nation have come together to develop micro-subdivisions with 20 fully serviced residential micro-lots in each community over the next four years. Each lot will have essential infrastructure, including water and wastewater services, hydropower, communications, and road access, supporting 80 new homes ranging from approximately 400 to 1,000 square feet. The project will expand access to affordable housing for Elders, single individuals, and other households seeking alternative housing options, while responding to local needs and priorities.

New investments in First Nations housing and infrastructure

Budget 2026 proposes to build on these investments through a significant long-term funding commitment of $32 billion over 10 years for First Nations housing and infrastructure. A sustained, 10-year commitment focused on providing greater certainty, accelerating construction, and transforming the way projects are financed would help communities make strategic investments and progressively close housing and infrastructure gaps over time.

For First Nations partners on reserve, long-term funding will lead to stronger, more reliable essential services by enabling communities to plan ahead, retain skilled workers, and make investments based on long-term needs rather than short-term pressures. It will also reduce the time and resources spent navigating short-term funding, allowing more of every dollar to go directly to delivering results.

To provide greater certainty:

• To improve First Nations infrastructure on reserve, Budget 2026 announces the government's intention to launch a First Nations On-Reserve Infrastructure Program and proposes to support the new program with $18.5 billion over 10 years, starting in 2027-28. This funding will support the construction and maintenance of a broad range of assets, from roads and bridges to schools and health facilities, while extending investments in water and wastewater infrastructure for six years beyond funding announced in June 2026. The new program will consider opportunities to consolidate existing First Nations on-reserve infrastructure programs and provide greater flexibility to plan the timing and sequencing of investments across assets according to specific circumstances rather than typical annual funding allocations.
• To maintain and build on the results of Canada's first Indigenous-owned and operated water utility, Budget 2026 proposes to provide $226.7 million over 10 years, starting in 2027-28, to the Atlantic First Nations Water Authority. This funding would support the Authority's efforts to maintain water and wastewater services in 13 First Nations communities in New Brunswick, Prince Edward Island, and Nova Scotia, and allow it to plan major capital projects that would expand services. Since beginning operations in 2022, the Authority has reduced the average duration of boil water advisories from 52 to 6 days.

To accelerate and maintain housing construction:

• To improve First Nations housing, Budget 2026 proposes to provide $11 billion over 10 years, starting in 2027-28. This funding will help communities manage and preserve 119,000 existing housing units through regular maintenance and repairs, construct more than 6,900 new homes, and renovate more than 10,900 existing homes over the next decade.
• To accelerate housing construction, Budget 2026 also proposes to provide an additional $1.7 billion over five years, starting in 2027-28, for housing in First Nations communities on reserve. This funding will enable faster delivery of shovel-ready housing projects while freeing up core funding to plan, deliver, and maintain housing over the next 10 years.

To transform financing:

To explore new approaches that could transform how we support First Nations housing and infrastructure in the future, Budget 2026 proposes to provide $657.5 million over 10 years, starting in 2027-28, for three initiatives:

• $150 million over five years, starting in 2027-28, for the Yänonhchia' Revolving Housing Finance Fund, a First Nation-led initiative that works with Indigenous Financial Institutions to provide First Nations individuals with housing loans, helping them on the path to home ownership. This funding would help Yänonhchia' initiate lending activities, supporting an estimated 825 housing loans in 60 to 100 First Nations communities.
• $7.5 million over five years, starting in 2027-28, for a Surety-Bonding Pilot to test a model for helping First Nations contractors overcome barriers to bidding on large construction contracts. The Pilot would provide federal financial guarantees for qualified First Nations contractors, helping them participate in larger construction projects across Canada.
• $500 million over 10 years, starting in 2027-28, for a Monetisation Pilot to test a First Nations-led model for financing infrastructure projects. The Pilot would use federal funding to secure upfront financing through the First Nations Financial Authority, with support from the First Nations Infrastructure Institute. It would test to what extent access to upfront financing enables First Nations communities to deliver infrastructure projects sooner and with fewer cost increases caused by delays. This would provide First Nations communities with a financial tool currently used by municipalities for infrastructure and could inform more effective approaches to delivering infrastructure projects in the future.

First Nations housing and infrastructure investments

More than $32B over 10 years

Supporting student success in First Nations communities

All Indigenous children in Canada should have access to high-quality education that respects and embraces their culture. Federal investments in First Nations-led kindergarten to Grade 12 education on reserve are producing strong results. Since last year, we have supported 541 First Nations-administered education programs and more than 120,820 students, helping to grow student participation, expand access to culturally grounded programming, and improve supports that enable First Nations students to reach their full potential:

• Enrolment is up 31% in First Nations-administered schools relative to 10 years ago, outpacing other forms of schooling.
• 94% of students have access to First Nations language instruction for one or more subjects, and 95% of students have access to culturally-based learning, meaning almost all children now have access to culturally-enriched programming.
• There are 115% more students in First Nations-administered kindergarten programs than in 2016-17, reflecting that more First Nations schools now have the resources needed to broaden the type of education they provide.
• Over 41,000 students across 195 First Nations school programs have been supported by the National School Food Program, which we recently made permanent. This is helping ensure that First Nations children have access to healthy meals and snacks at school, and can reach their full potential in the classroom.

Building on this progress and sustaining positive outcomes requires stable, predictable funding for First Nations on-reserve education to give communities the certainty they need to plan ahead, strengthen supports for students, and continue improving outcomes:

• To support high-quality, culturally relevant education and improve long‑term outcomes for First Nations students, Budget 2026 proposes to provide $5.8 billion over five years, starting in 2027-28, for the Elementary and Secondary Education Program on reserve. This includes the renewal of targeted funding for adult education and will help ensure First Nations students have access to educational opportunities comparable to those available elsewhere in Canada while providing communities with the certainty needed for long-term planning.
• To maintain access to post-secondary education and support the next generation of First Nations leaders, professionals, and skilled workers, Budget 2026 proposes to provide $437.9 million over five years, starting in 2027-28, through the Post-Secondary Student Support Program.

Supporting Indigenous children and families

Canada is committed to removing systemic barriers that make it difficult for Indigenous children and youth to access the services and supports they need. Budget 2026 proposes to provide longer-term funding for Jordan's Principle and Pirutsiagutiit (the Inuit Child First Initiative) to help ensure First Nations and Inuit children can access government-funded services without delay, while supporting greater Indigenous control over child and family services within their communities:

• To ensure First Nations children continue to receive the services and supports they need, Budget 2026 proposes to provide $6 billion over six years, starting in 2026-27, for Jordan's Principle. This funding will support continued access to health, social, and educational services for First Nations children and ongoing work to address barriers.
• To help Inuit children access essential services and supports closer to home, Budget 2026 proposes to provide $575 million over five years, starting in 2027-28, to renew the Inuit Child First Initiative and support the transition to the Pirutsiagutiit, co-developed with Inuit Tapiriit Kanatami and the four Inuit Treaty Organizations.
• To support Indigenous communities in exercising greater control over child and family services, Budget 2026 proposes to provide $806.7 million over five years, starting in 2027-28, to renew funding for the implementation of An Act respecting First Nations, Inuit and Métis children, youth and families. This funding will help Indigenous communities provide culturally appropriate supports and services that better meet the needs of children, youth, and families.

Strengthening health and safety in Indigenous communities

To support the long-term success, health, and safety of Indigenous communities, Budget 2026 proposes targeted investments to strengthen public health services, provide coverage for health products and services, support stable and culturally responsive First Nations and Inuit policing services, and advance community-led approaches to safety and well-being. Together, these measures would help communities access essential services, respond to local priorities, and build safer, healthier, and more resilient communities.

• To support access to health products and services through the Non-Insured Health Benefits Program, Budget 2026 proposes to provide $2.9 billion over three years, starting in 2027-28, to continue to provide First Nations and Inuit people with coverage for a range of health benefits including mental health services, medical travel, medications, and more.
• To help Indigenous communities access the public health services and support they need to live healthy lives, Budget 2026 proposes to provide $290.7 million over four years, starting in 2027-28, to renew funding for public health workers and public health initiatives in Indigenous communities. This investment would strengthen outbreak response capacity, support communicable disease prevention, and improve recruitment and retention of public health workers.
• To support stable and effective Indigenous policing agreements and infrastructure, Budget 2026 proposes to provide up to $633.7 million over four years, beginning in 2027-28, and $250.9 million ongoing to the First Nations and Inuit Policing Program. This funding would help communities maintain reliable, professional, and culturally responsive policing services, support the recruitment and retention of police officers, improve on-reserve policing infrastructure such as police stations, and expand access to community-led safety services.
• We also propose to provide $140 million over four years, starting in 2027-28, to support community-led safety initiatives. This funding would enable First Nations and Inuit communities to develop and implement approaches tailored to their priorities and circumstances, helping prevent harm and address local safety concerns.
• To support a rapid response when an Indigenous woman, girl, Two-Spirit, or gender-diverse person goes missing, Budget 2026 also proposes to provide $3.6 million in 2027-28 to renew the Red Dress Alert pilot, developed with Indigenous partners. Funding would also renew the government's capacity to coordinate federal efforts to address the ongoing issue of Missing and Murdered Indigenous Women and Girls.

Strengthening the fiscal and institutional capacity of Indigenous governments

We know that building Canada Strong means building together. When Indigenous governments, supported by strong institutions, have more tools to generate revenue, they can better meet their communities' priorities and advance their own economic goals. Enhancing the financial, fiscal, and institutional capacity of Indigenous governments is essential to expanding their full participation in Canada's economy.

The federal government works collaboratively with interested Indigenous governments and organisations to achieve this goal by advancing Indigenous tax jurisdiction and opportunities to generate tax revenues, on an opt-in basis, which are key to transforming fiscal relationships.

This includes reaching agreements under the newly enacted Fuel, Alcohol, Cannabis, Tobacco and Vaping (FACT) value-added sales tax framework, and exploring additional opportunities for Indigenous governments to generate revenues. To further support the fiscal and financial autonomy of Indigenous governments, Budget 2026 proposes to:

• Update First Nations Personal Income Tax arrangements by proposing to increase the revenue-sharing rate in conjunction with introducing a revenue-sharing mechanism.
• Update First Nations Goods and Services Tax arrangements by proposing a revised cost-sharing arrangement for the Canada Groceries and Essentials Benefit.
• Renew funding for the First Nations Financial Management Board, the First Nations Tax Commission, and the First Nations Infrastructure Institute. This funding will help First Nations build the financial governance, local revenue, and infrastructure planning capacity needed to participate more fully in economic opportunities. Budget 2026 proposes to provide $78.5 million over four years, starting in 2027-28, and $20.6 million ongoing to Crown‑Indigenous Relations and Northern Affairs Canada to support this renewal.

Supporting reconciliation through partnership and ownership

Through Indigenous loan guarantees and new opportunities for equity ownership, including Canada's offer to sell a 15% stake in Trans Mountain Corporation to 128 Indigenous groups in Alberta and British Columbia, more Indigenous communities are becoming partners and owners in the projects shaping Canada's future. That means lasting revenues for communities, new opportunities for local workers and businesses, and greater economic self-determination for generations to come.

The $10 billion Indigenous Loan Guarantee Program supports making that possible by giving Indigenous communities access to more affordable financing to invest in major projects. With three loan guarantees already issued, Budget 2026 announces the Tla'amin Nation Tree Farm project in British Columbia:

• Budget 2026 is supporting Tla'amin Nation in acquiring 100% ownership of Western Forest Products' Stillwater Forest Operation, a major forestry asset within its traditional territory, providing stable revenues and creating local economic opportunities.

The fifth loan guarantee, for an oil and gas project, is currently under negotiation, giving multiple communities a direct stake in major energy infrastructure and the opportunity to build long-term revenue and wealth.

4.4 Building a more inclusive Canada

A strong, united Canada is one where everyone knows they have a fair opportunity to participate and succeed, not one that is divided by gender, race, or identity. Meaningful progress has been made. But barriers and discrimination remain real issues for many people and communities. We are working relentlessly to overcome these barriers so that everyone can fulfil their potential. That is why Budget 2026 builds on existing efforts to promote equality, reduce systemic barriers, support young people, and help build a more inclusive Canada for all.

Gender-Based Analysis Plus supports these efforts by assessing how budget measures affect diverse groups of Canadians, and impacts are reported in Annex 4. We will extend this reporting to future spring economic updates. This will complement legislated budget reporting and provide Canadians with greater transparency on how these considerations inform decisions.

Advancing gender equality

Canada is a global leader in advancing gender equality and in innovative financing for women's rights organisations. At home, we have strengthened our support for women's organisations, including through Women and Gender Equality's Women's Program.

National women's rights organisations (NWROs) are essential partners in furthering equality in Canada and supporting our leadership internationally. They are an important part of Canada's policy and democratic infrastructure. They bring together women's lived experiences, generate evidence and expertise, identify systemic and emerging issues, provide front-line intelligence, contribute to policy and legal solutions, and offer an independent equality lens on government action.

We recognise the value of this national capacity and are committed to strengthening it. We are exploring how best to preserve the expertise, networks, and institutional knowledge that NWROs have built, so they can continue contributing to better public policy and to greater equality for women across Canada.

Over the years, federal actions have delivered meaningful progress toward greater gender equality. The Women's Program has supported more than 700 projects since 2018, reaching more than 400,000 women, girls, and other Canadians and helping reduce barriers to employment and education. But we are striving to build on this progress and do more to advance gender equality.

That is why Budget 2026 proposes:

• $8 million over four years, starting in 2027-28, and $2 million ongoing to support organisations working to advance equality for women and address systemic barriers through the Women's Program, including projects that support women entrepreneurs, increase women's representation in leadership roles, and help address gender-based violence.
• $70 million over two years, starting in 2027-28, to provide free access to menstrual products and support menstrual health education and awareness through the Menstrual Equity Fund. Building on the success of this pilot initiative, which has helped over 4 million Canadians, a two-year renewal will support continued delivery while allowing Women and Gender Equality Canada to evaluate the initiative and better understand its reach and impacts.
• $14.9 million over four years, starting in 2027-28, with $5 million in future years to support research on women's health through the National Women's Health Research Initiative.

Implementing Canada's Black Justice Strategy

Black Canadians continue to face systemic barriers within the criminal justice system. They are overrepresented both within the justice system and among victims of crime. Canada's Black Justice Strategy is the country's first national strategy dedicated to addressing anti-Black racism and systemic discrimination in our justice system. It provides a 10-year framework for improving justice and public safety outcomes for Black people in Canada, in direct partnership with Black communities across the country.

This strategy is helping Black Canadians navigate the court system, while supporting services for victims and survivors of crime. It is also helping young people avoid or move beyond the justice system altogether, delivering culturally responsive support for people in correctional facilities and those returning to their communities, all while improving our data on disparities in the justice system.

We are also working to expand economic opportunities for Black Canadians. This includes helping young people find work, strengthening Black-led, Black-focused, and Black-serving organisations, and supporting Black entrepreneurs and business owners. We have previously invested $189 million over five years, starting in 2025-26, through the Black Entrepreneurship Program.

Budget 2026 continues this important work, providing additional funding to support the implementation of Canada's Black Justice Strategy. The next phase will focus on improving access to justice, reducing involvement in the justice system, reducing repeat offending, and continuing to work closely with Black communities to move the Strategy forward.

• To support these efforts, Budget 2026 proposes to provide $136.3 million over four years, starting in 2027-28, to Justice Canada, Public Safety Canada, Correctional Service Canada, and Employment and Social Development Canada to advance the ongoing implementation of Canada's Black Justice Strategy. This funding includes but is not limited to supporting the following programs:
  • $58.6 million over four years, starting in 2027-28, to Justice Canada to provide community-based diversion, rehabilitation, and reintegration initiatives for Black youth, victim services and supports, access-to-justice services, and for the delivery of Impact of Race and Culture Assessments and related training activities.  
  • $41.1 million over four years, starting in 2027-28, to Public Safety Canada to support community reintegration services delivered by Black-led organisations, record suspension application services, recidivism research, and targeted public safety initiatives.  
  • $20.8 million over four years, starting in 2027-28, to Employment and Social Development Canada in support of Youth Employment and Skills Strategy programming for Black youth.  

Renewing the 2SLGBTQI+ Project Stream

All Canadians should be able to be their whole selves, love who they love, and fully enjoy their rights. The Federal 2SLGBTQI+ Action Plan was Canada's first whole-of-government plan to advance equality for 2SLGBTQI+ communities. In 2022, the Government of Canada committed $100 million over five years to support its implementation. Since then, Canada has made important progress in advancing the rights and inclusion of 2SLGBTQI+ people. But there is more work to do to build a safer, more inclusive country for all, and we are taking action.

In Budget 2025, Canada's new government took further steps to advance this work, providing $54.6 million over five years, starting in 2026-27, and $10.9 million ongoing to build the capacity of 2SLGBTQI+ community organisations and networks and ensure Pride events remain safe and accessible in communities across Canada. To build on this for safer, more inclusive communities:

• Budget 2026 proposes to provide $60 million over four years, starting in 2027-28, and $15 million ongoing to renew funding under the Federal 2SLGBTQI+ Action Plan, which supports community-based projects, public awareness, research, and the 2SLGBTQI+ Secretariat.

This ongoing support will provide greater stability for 2SLGBTQI+ organisations, allowing them to focus more of their efforts on serving communities, strengthening local networks, and delivering projects that improve outcomes for 2SLGBTQI+ people across Canada. We remain committed to continuing the work and advancing the priorities of the 2SLGBTQI+ National Action Plan.

Supporting Kids Help Phone

Whether at home, in school, or online, young people face increasingly complex mental health challenges. They need access to skilled, compassionate support from someone who will listen.

Kids Help Phone is Canada's only 24/7 e-mental health service, providing young people with free, confidential support in English, French, and more than 100 other languages. To ensure this support is available to every young Canadian who needs it:

• Budget 2026 proposes to provide $7.5 million over three years, starting in 2027-28, to the Public Health Agency of Canada to continue supporting Kids Help Phone's work providing mental health, counselling, and crisis support to young people.

Spotlight on gender and diversity impacts

Budget 2026 will support Indigenous communities, strengthening housing, infrastructure, education, and safety by:

• Investing in housing and infrastructure in Indigenous communities to support Indigenous people, and particularly First Nations on reserve, with improved housing and infrastructure that contribute to community and individual well-being and stronger long-term socio-economic outcomes. These investments would be particularly significant for low-income people and remote communities, who face greater barriers resulting from inadequate infrastructure.
• Supporting high-quality, culturally relevant education for First Nations students on reserve with funding for the Elementary and Secondary Education Program, helping ensure access to educational opportunities comparable to those available elsewhere in Canada. Benefits would be particularly significant for low-income students who tend to have lower levels of educational attainment due to additional constraints to participating in education.
• Renewing the Missing and Murdered Indigenous Women and Girls Secretariat and the Red Dress Alert pilot to support faster, culturally informed responses to missing persons cases, improving safety and reducing the risk of violence for Indigenous women, girls, and 2SLGBTQI+ people. These efforts would be particularly important given the disproportionately high rates of violent victimisation experienced by Indigenous women and girls in Canada.

Budget 2026 will also advance gender equality by supporting the health, well-being, safety, and economic and social participation of women, girls, and gender-diverse people, by:

• Supporting projects through the Women's Program that promote gender equality and help improve outcomes for women and girls.
• Improving access to menstrual products with support for the Menstrual Equity Fund, particularly for low-income people who menstruate, including women, girls, trans, and gender-diverse people. This would help reduce barriers to menstrual health. Approximately 1.24 million people who menstruate in Canada live below the poverty line.
• Renewing the National Women's Health Research Initiative to support research that improves health access and health outcomes for women, girls, trans, and gender-diverse people. This would help address longstanding gaps in women's health research and strengthen the evidence available to inform care.

Budget 2026 will also celebrate Canada's linguistic and cultural diversity, by:

• Hosting the 2028 Francophonie Summit, which will celebrate the French language and culture across Canada, including the contributions of Francophone communities in Québec and New Brunswick and elsewhere across the country. The Summit will also strengthen connections with other Francophonie countries and provide a platform to showcase the diversity of Canada's Francophone identities and cultures across the world.

Further information on the expected gender and diversity impacts of Budget 2026 measures across a range of population groups is provided in Annex 4.