Canada's government pledges $11.2 billion to end homelessness within ten years

Ottawa announced a budget that earmarks $11.2 billion for homelessness initiatives over the next four years, with a total of $17.8 billion planned for the ten-year period. Finance Minister François-Philippe Champagne described the plan as a "flagship" policy that will create a new fund to support health, addictions and social-service projects.

The budget proposes that the federal government cover capital costs for new supportive and transitional housing, while provinces and territories would fund ongoing operations, training, income and health supports. It also includes a $2 billion commitment to build community mental-health and addictions facilities and expands non-market housing, targeting 200,000 new homes across the country in the next decade.

An estimated 65,000 Canadians were counted as experiencing homelessness in 2025, and a 2022 Statistics Canada study found that nearly one in eight households had faced some form of homelessness, with Indigenous peoples affected at a higher rate. Tim Tierney, president of the Federation of Canadian Municipalities, said the budget provides "decisive action" that municipalities have long sought and urged provinces and territories to supply operating funding and essential supports.

Prime Minister Justin Carney will travel to Winnipeg to highlight the measures, noting an estimated 2,000 unhoused residents in the city. The budget outlines plans for a new Centre for Mental Health and Addictions and an additional 2,000 transitional and supportive homes in Winnipeg, with provincial leaders and municipal mayors expected to join the announcement.

The Canadian Alliance to End Homelessness called the budget "the essential first step" and emphasized the need for coordinated action across provinces, territories and cities. NDP leader Avi Lewis welcomed the $11.2 billion allocation but said the party will monitor its use to ensure the funds remain dedicated to public-sector programs.