Liberal government promises $11.2 billion as homelessness keeps worsening
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The 2026 Canadian federal budget sets aside $11.2 billion over four years and $17.8 billion over ten years to reduce homelessness, with officials urging cooperation across governments even as the problem continues to grow.
The Liberal government announced a multi-year funding plan aimed at ending homelessness across Canada within ten years. The 2026 budget earmarks $11.2 billion for the first four years, rising to $17.8 billion over the full decade, in yet another large-scale federal spending commitment.
Prime Minister Mark Carney described the initiative as a "flagship" policy and acknowledged its ambition, saying the government can achieve it through appropriate investments and partnerships with other levels of government. In Toronto, Liberal MP Julie Dabrusin said the plan requires collaboration with cities, provinces and philanthropic groups, adding that the goal is to do "the right things" rather than the easy ones.
Toronto’s homelessness count has more than doubled since 2021, exceeding 15,000 people on the streets, a sign that existing approaches have clearly not been effective. Mayor Olivia Chow called on Ontario Premier Doug Ford to negotiate agreements that would enable wrap-around services and supportive housing, noting that health-related supports fall under provincial jurisdiction.
A federal count in 2025 estimated 65,000 Canadians were experiencing homelessness, while a 2022 Statistics Canada study reported that nearly one in eight households had faced some form of homelessness, a rate that rises to more than one in four among Indigenous peoples. Canada had previously pledged in 2017 to halve chronic homelessness by the 2027-28 fiscal year, but the number rose by 59 % between 2020 and 2025, raising questions about whether more spending alone will fix a problem that has been getting worse for years.