Toronto 
Prime Minister Mark Carney has announced a new set of federal measures aimed at making groceries and other essentials more affordable, as the government responds to ongoing economic uncertainty and rising household costs.
Here are the highlights of the announcement:
- Canada Groceries and Essentials Benefit expanded: The federal government is replacing the GST Credit with the new Canada Groceries and Essentials Benefit. Starting in July 2026, payments will increase by 25% for five years. A one-time payment equal to a 50% increase will also be issued this year.
- Higher direct payments to households: A family of four can receive up to $1,890 this year and about $1,400 annually for the following four years. Single Canadians may receive up to $950 this year and roughly $700 per year afterward. More than 12 million Canadians are expected to benefit.
- Support to stabilize food prices: Ottawa is allocating $500 million from the Strategic Response Fund to help businesses absorb supply chain disruption costs rather than passing them on to consumers.
- New Food Security Fund for smaller operators: An additional $150 million Food Security Fund will be created under the Regional Tariff Response Initiative to support small and medium-sized businesses and related organizations.
- Lowering food production costs: Immediate expensing will apply to greenhouse buildings acquired on or after November 4, 2025, and in use before 2030. This allows producers to fully write off greenhouse investments, supporting domestic food supply growth.
- Relief for food banks: The Local Food Infrastructure Fund will receive $20 million to help food banks and community organizations deliver more nutritious food to families under pressure.
- National Food Security Strategy in development: The government is working on a strategy focused on strengthening domestic production and access to affordable food. It will also include unit price labelling and enhanced oversight by the Competition Bureau across food supply chains.
Recent measures include cutting income taxes for 22 million Canadians, cancelling the federal consumer carbon tax on April 1, 2025, reducing gas prices by up to 18 cents per litre, eliminating GST for qualifying first-time homebuyers, and making the National School Food Program permanent for up to 400,000 children annually.
The government says these steps are designed to provide immediate relief while building longer-term economic resilience.
