Adobe Firefly photo
Prime Minister Mark Carney has announced a series of new federal measures aimed at making groceries and other essentials more affordable for Canadians, as households continue to feel pressure from rising costs.
Central to the plan is the new Canada Groceries and Essentials Benefit, which replaces the former GST Credit. The benefit will increase by 25 percent for five years beginning in July 2026. In addition, the federal government will provide a one time payment this year equal to a 50 percent increase.
Ottawa says the changes mean a family of four could receive up to 1,890 dollars this year and about 1,400 dollars annually for the following four years. A single person could receive up to 950 dollars this year and about 700 dollars per year after that. More than 12 million Canadians are expected to benefit.
To help stabilize food prices, the government is also committing 500 million dollars from the Strategic Response Fund to support businesses facing supply chain disruptions, with the goal of preventing those costs from being passed on to consumers.
Another 150 million dollars will be directed to a new Food Security Fund to support small and medium sized businesses and food related organizations. Ottawa is also introducing immediate expensing for greenhouse buildings to encourage domestic food production.
An additional 20 million dollars will be provided to the Local Food Infrastructure Fund to support food banks, while work begins on a National Food Security Strategy focused on affordability, competition, and access to nutritious food.
The federal government says the measures are designed to provide immediate relief while strengthening Canada’s food system for the long term.
(Written by: Joseph Goden)
