Canada's 2026 budget finally puts serious public money toward ending homelessness by 2036
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The federal budget commits nearly $30 billion to housing, rental help and health facilities, signaling a long-overdue shift toward direct public investment, while experts say more detail and more money from other governments will still be needed.
Ottawa's 2026 budget sets a target of ending homelessness in Canada by 2036, committing almost $30 billion to new housing, rental assistance and health-service facilities in a long-awaited recognition that the market has not solved this crisis. The plan includes $10 billion for 25,000 supportive and transitional homes through the new Build Canada Homes agency, $12 billion for low-income rental assistance and the Reaching Home program, $5 billion for integrated health-housing centres, and $2 billion for community mental-health and addictions treatment centres.
Winnipeg has been designated as the model city, receiving up to $800 million for 2,000 homes and an additional $200 million for a mental-health and addictions centre, with the province expected to share half the cost of the latter.
"What we see here is a substantial down payment, but I don’t think this by itself will be enough," said Tim Richter, president and CEO of the Canadian Alliance to End Homelessness. He added that provincial investment will be necessary, underscoring how much responsibility still rests on other governments that have too often underfunded the crisis.
Associate professor Abe Oudshoorn of Western University described the budget as an "important shift" toward direct spending for those with the greatest housing needs, contrasting it with the 2017 National Housing Strategy that relied on low-interest loans to for-profit developers rather than truly public solutions.
The budget follows a 2023 pledge to eradicate chronic homelessness by 2030, a goal that has been questioned after homelessness rose to about 65,000 people, nearly double the 2018 figure. A 2024 Parliamentary Budget Officer report indicated that an additional $3.5 billion per year would be required to meet earlier reduction targets, a reminder that years of delay have made the challenge more expensive and more urgent.
Housing Minister Gregor Robertson noted past coordination challenges between federal and provincial governments, citing Vancouver's growing street population despite earlier municipal promises.
Researchers highlighted data gaps, with University of Toronto professor Carolyn Whitzman stating that accurate national counts are lacking and estimating that 50,000 low-cost supportive units would be needed annually to achieve a 2040 end-to-homelessness goal. She described the federal effort as a "super-tanker" moving in the right direction, but emphasized the need for matching actions from other levels of government so the burden does not fall on the most vulnerable people alone.