Canada budget allocates $11.2 billion to tackle homelessness over four years

Finance Minister François-Philippe Champagne said Canada is embarking on a path to end homelessness within ten years as he presented the federal budget on Thursday. He noted that 65,000 Canadians currently experience homelessness and called the initiative "the right thing to do."

The 2026 budget proposes $11.2 billion over the next four years and $17.8 billion in later years for housing, community mental-health and addictions facilities, and prevention programs. It also earmarks $2 billion for the Health Infrastructure Fund and maintains $6.5 billion for existing initiatives such as Reaching Home and the Veterans Homelessness Program for the next decade, while renewing the Canada Housing Benefit for another ten years.

A new "integrated supports fund" will be created through Build Canada Homes to back projects that combine housing with health, mental-health, addictions and social services. Provincial and territorial partners are expected to fund the operation and service costs of these projects.

The budget includes a $1 billion partnership with Manitoba to build transitional and permanent supportive housing in Winnipeg, targeting 2,000 new units and associated wrap-around services. The plan states that Manitoba must continue funding its current services to ensure the investment’s success.

"We will begin immediately in Winnipeg to break the cycle of homelessness," the budget said.

Opposition leaders offered mixed reactions. NDP leader Avi Lewis described the homelessness funding as "a good thing" but said his party will monitor that the money remains in the public sector for non-market housing. Bloc Québécois finance critic Jean-Denis Garon urged that most of the federal funds be directed through Quebec to support provincial efforts. The Federation of Canadian Municipalities praised the allocation, saying it enables decisive action that municipalities have long requested.

If passed, the government plans to work with provinces and territories on bilateral agreements to align the funding with the goal of ending homelessness within the next ten years.