Prime Minister Mark Carney has announced a series of new federal measures aimed at lowering the cost of groceries and other essential items for Canadians, as the government works to address affordability pressures amid ongoing global economic uncertainty.
Speaking in Ottawa on Sunday, Carney said the federal government is focused on strengthening Canada’s economy while delivering immediate cost relief to households. Central to the announcement is the introduction of the new Canada Groceries and Essentials Benefit, which replaces the former GST Credit and is designed to put more money directly into the hands of Canadians.
“One of the best things about Canada is that you don’t have to be born rich to succeed,” Carney said. “To protect that fundamental value, we are building a stronger economy that benefits everyone – creating thousands of new career opportunities with better wages. We’re also bringing in new measures to lower costs and make sure Canadians have the support they need now. We’re building Canada strong, because we’re strongest when we look after each other and when we ensure everyone has the chance to get ahead.”
Beginning in July 2026, the value of the Canada Groceries and Essentials Benefit will increase by 25 per cent for five years. In addition, eligible Canadians will receive a one-time payment this year equal to a 50 per cent increase. The federal government says the combined support means a family of four could receive up to $1,890 this year and about $1,400 annually over the following four years, while a single individual could receive up to $950 this year and about $700 annually for the next four years. More than 12 million Canadians are expected to benefit from the program.
Finance and National Revenue Minister François-Philippe Champagne said the measures are intended to deliver immediate relief while building longer-term affordability. “Our government is taking direct action to make life more affordable for Canadians. We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition, and supply chains to build a more resilient, affordable economy for the future,” he said.
As part of the announcement, the federal government is also committing $500 million from the Strategic Response Fund to help businesses absorb supply chain disruption costs without passing them on to consumers. A separate $150 million Food Security Fund will be created under the Regional Tariff Response Initiative to support small- and medium-sized businesses and related organizations. To reduce production costs, immediate expensing will be introduced for greenhouse buildings acquired after Nov. 4, 2025, and brought into use before 2030, a move the government says will encourage domestic food production.
Agriculture and Agri-Food Minister Heath MacDonald said the measures are aimed at both short-term relief and long-term stability. “Many Canadians have been feeling the pressure of rising costs for far too long, and our government is focused on delivering support where it’s needed most. These measures will support Canada’s agriculture sector and strengthen the systems Canadians rely on every day. By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system,” he said.
To support food banks and organizations facing increased demand, the government is also providing $20 million to the Local Food Infrastructure Fund. Officials say this will help ensure more nutritious food reaches families in need. At the same time, work is underway on a National Food Security Strategy that will focus on strengthening domestic food production, improving access to affordable food, introducing unit price labelling and supporting the Competition Bureau’s oversight of food supply chains.
Industry Minister Mélanie Joly said restoring competition is key to lowering prices. “At a time when global supply chain disruptions are driving up prices, our government is stepping in. By committing $500 million through the Strategic Response Fund to help Canadian businesses manage rising costs, and putting a renewed focus on competition in the food supply chain, we are taking decisive action to bring down grocery prices. Strengthening supply chains and restoring real competition means more fairness at the checkout and real relief for Canadian families,” she said.
The federal government says the announcement builds on earlier affordability measures, including personal income tax cuts, housing-related GST changes for first-time buyers, the cancellation of the federal consumer carbon tax and expanded support programs outlined in Budget 2025. Officials say together, the initiatives are intended to reduce household costs while creating a more resilient and affordable economy for Canadians now and in the years ahead.
