2026 Spring Economic Update: Key Measures Unveiled

The Spring Economic Update 2026 builds on the momentum of Budget 2025 with strategic investments that support productivity, growth, and competitiveness and position Canada for long-term prosperity.

This means delivering generational infrastructure and nation-building projects, diversifying Canada's trade, supporting workers and young people, building more homes, protecting the safety and security of Canadians, and investing in strong communities. The government is making these key investments while maintaining Canada's strong fiscal stewardship, which has positioned Canada, according to the IMF, to have the second fastest projected growth in the G7 this year.

Building Canada Strong

• Canada Strong Fund: Introducing Canada's first national sovereign wealth fund, to invest in key, strategic Canadian projects and companies, benefitting Canadians through jobs, economic growth, and greater security. Canadians will also have a stake in the projects themselves, allowing them to receive financial returns as we will build Canada strong together.
• Major Projects Office: 21 nation-building initiatives that will connect, diversify, and propel our economy, supporting 60,000 jobs during construction and over $125 billion in new investment.
• Defence Industrial Strategy: a whole-of-government approach to transform Canada's defence industry. The strategy will prioritise Canadian suppliers and materials, invest in Canadian innovation and commercialisation, and streamline procurement to give businesses a consistent and predictable demand outlook.
• Defence Investment Agency: Agency will be responsible for re-equipping our military and driving economic benefits for Canada through the government's generational investment in defence.
• Canada's First Investment Summit: Positioning Canada as the premier investment destination in fall 2026.
• Sustainable Finance Conference: This event will bring together domestic and international stakeholders to promote progress on the Canadian taxonomy and discuss sustainable investment opportunities in Canada.
• Auto Strategy: Rewarding the production of made-in-Canada vehicles and harnessing our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future, positioning Canada to become a global leader in electric vehicle (EV) production.
• Nature Strategy: To help conserve 30 per cent of Canada's lands and waters by 2030, ensure our industrial strategies complement our conservation efforts, and advance actions to mobilise capital for nature.

Supporting Workers

• Team Canada Strong: Empowering young Canadians by launching a new nationwide effort to recruit, train, and hire 80,000 to 100,000 new skilled trade workers by 2030-31. This initiative creates new opportunities for Canadians and attracts the workers needed to build more homes and major projects at speed and at scale.
• Employee Ownership Trust Tax Exemption: Making the Employee Ownership Trust Tax Exemption permanent to empower workers to participate directly in building Canada strong.
• Lowering Canada Pension Plan Rate: Reducing the contribution rate of the base Canada Pension Plan from 9.9 per cent to 9.5 per cent, effective January 1, 2027, translating into annual savings of about $133 for an employee earning $70,000 a year, with equivalent savings for their employer.

Making Life More Affordable

• Canada Groceries and Essentials Benefit: Providing support to over 12 million Canadians to purchase groceries and essentials (payments beginning June 5).
• Pausing Fuel Excise Tax: Until Labour Day, saving Canadians up to 10 cents/L on gasoline and 4 cents/L on diesel.
• Streamlining Disability Tax Credit: Making the application process easier for individuals with certain long-lasting medical conditions.
• Bringing Down Mobile Plan Costs: Mobile plans that once cost over $100 now cost far less, with more data for Canadians.
• Capping Non-Sufficient Fund Fees at $10: Helping Canadians pay less in banking fees and strengthening consumer protections.
• Reducing Development Charges and Providing Targeted GST Relief for Homebuyers: Lowering the cost of housing and make it easier for Canadians to purchase a home.
• Cutting Red Tape to Build Homes Faster: Streamlining rules and modernising building codes will make it easier to construct new homes, including factory built and modular housing.
• Supporting Innovation in Construction: Investing in new building technologies will help reduce costs and speed up construction.
• Accelerating over $7 billion in Low-Cost Financing to the Canada Mortgage and Housing Corporation: More affordable financing will help builders move projects forward sooner-getting rental homes on the market faster.
• Helping Those Most in Need: Extending support for people experiencing homelessness and ensuring survivors of gender-based violence have access to safe housing.

Safer and Stronger Communities

• Investing in Sport-from Playground to Podium: Investing $755 million to expand access to sport, creating opportunities for Canadians to build meaningful relationships within their communities, making full use of existing and new infrastructure, and to support Canada's world class athletes who inspire pride and unity, as we celebrate their accomplishments as a nation.
• Investing in Indigenous Communities: Providing $4.3 billion in funding for essential services, including health benefits and culturally relevant education, to support stronger, healthier communities.
• Maintaining Small Craft Harbours: Nearly $1 billion to repair and modernise critical infrastructure for fishers across the country, protect livelihoods, and empower coastal communities.
• Financial Crimes Agency and National Anti-Fraud Strategy: Standing up a best-in-class agency to combat financial crimes and protect Canadians.