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Federal Budget Outlines Plan to End Homelessness Within 10 Years
The budget sets up a new fund and $2 billion for mental health and addictions facilities as Ottawa seeks coordinated action.
On Thursday, The Carney government released its 2026 budget, pledging $11.2 billion over four years to address homelessness in Canada. Finance Minister François-Philippe Champagne called the initiative one of the government's 'flagship' policies.
A 2025 federal count reported 65,000 Canadians experiencing homelessness, while a 2022 Statistics Canada study found nearly one in eight households faced housing instability. For Indigenous people, that rate jumps to more than one in four.
The strategy proposes building new community mental health and addictions facilities with a $2 billion commitment, alongside continued support for the Veterans Homelessness Program. Officials aim to 'create the conditions to end homelessness' through new supportive housing.
Ottawa proposes taking on capital costs for new projects, while provincial and territorial governments will foot the bill for ongoing operations, health, and income supports. Officials plan to sign agreements ahead of next year's spring economic update.
The Carney government promises to end homelessness within a decade, committing $17.8 billion over 10 years to the effort. The budget document states, 'We are committed to changing how Canada addresses homelessness and supports those who are unhoused.
Québec City has set itself the goal of reducing homelessness by half by 2030. Ottawa wants to put an end to it over the next ten years. To achieve this goal, it plans to inject $11.2 billion over four years as soon as next year, including $2.3 billion in the first year.