Key Takeaways
- The Government of Canada introduced new measures to make groceries and essential goods more affordable.
- A new Canada Grocery and Essentials Benefit will be increased by 25% for five years starting in July 2026.
- Over $670 million has been allocated to support food security, supply chains, and agri-food producers.
- Immediate support includes funding for food banks, greenhouses, and supply chain resilience.
- A national food security strategy is being developed to address long-term affordability and access.
Government of Canada Introduces Measures to Improve Affordability and Economic Resilience
The Government of Canada has announced a series of new measures aimed at reducing the cost of groceries and other essential goods, as part of a broader effort to strengthen economic resilience and support households facing ongoing cost pressures. The announcement was made by Prime Minister Mark Carney and focuses on actions the federal government can directly control to support affordability, job creation, and supply chain stability.
The government stated that the measures are designed to move Canada’s economy from dependence to resilience while providing immediate support to Canadians. These actions build on earlier initiatives, including tax reductions, housing measures, and expanded social programs.
Financial Support for Households Through Enhanced Benefits
Canada Grocery and Essentials Benefit Expansion
A central element of the announcement is the introduction of the Canada Grocery and Essentials Benefit, formerly known as the GST credit. The benefit will be increased by 25% for a five-year period beginning in July 2026. In addition, the government will provide a one-time payment equivalent to a 50% increase in the benefit in the current year.
As a result, a family of four could receive up to CAD 1,890 this year and approximately CAD 1,400 annually over the following four years. Single individuals may receive up to CAD 950 this year and around CAD 700 annually thereafter. The government estimates that more than 12 million Canadians will receive additional support through this benefit.
Government of Canada Plans To Strengthen Food Security and Supply Chains
Support for Producers, Businesses, and Food Banks
To address supply chain disruptions and rising costs, the government is allocating CAD 500 million from the Strategic Response Fund to help businesses absorb supply chain-related costs without passing them on to consumers. An additional CAD 150 million food security fund will support small and medium-sized businesses and related organizations.
To reduce food production costs, immediate expensing will be introduced for greenhouses, allowing producers to deduct the full cost of qualifying greenhouse investments made after November 4, 2025, and in use before 2030. The government is also investing CAD 20 million in the Local Food Infrastructure Fund to support food banks and community organizations.
Advancing a National Food Security Strategy
The government confirmed it is developing a national food security strategy aimed at increasing domestic food production, improving access to affordable and nutritious food, and strengthening competition across food supply chains. Measures will include unit price labeling and enhanced oversight by the Competition Bureau.
Prime Minister Mark Carney stated that the government’s goal is to reduce costs while creating better-paying jobs, providing Canadians with greater economic certainty and long-term stability.
