Federal budget outlines plan to end homelessness within 10 years

The Canadian federal government has announced ambitious plans to eradicate homelessness within the next ten years. In its 2026 budget, released on Thursday, Ottawa allocated $11.2 billion over the next four years and $17.8 billion over a decade to combat the issue. Finance Minister François-Philippe Champagne described the proposed measures as one of the government's "flagship" policies, aimed at creating the necessary conditions to end homelessness.

To achieve this goal, the budget outlines a comprehensive strategy that includes establishing a new fund to support projects addressing health, addictions, and social services. The government intends to build new supportive and transitional housing across the country, with the federal government covering capital costs while provincial and territorial governments will be responsible for ongoing operations and services such as training, income, and health supports.

Furthermore, the budget aims to sign agreements with provinces and territories ahead of the spring economic update to ensure collaboration among all levels of government, Indigenous partners, the private sector, and not-for-profit organizations. The plan also includes expanding non-market housing and constructing 200,000 new homes nationwide within the next ten years.

The federal government has committed to building new community mental health and addictions facilities, with a $2 billion investment. Additionally, the strategy will continue to support the Veterans Homelessness Program. According to a 2025 count by the federal government, an estimated 65,000 people across the country are experiencing homelessness.

A 2022 Statistics Canada study revealed that nearly one in eight households reported experiencing some form of homelessness at some point, with that rate being significantly higher among Indigenous people, at more than one in four.