Prime Minister Mark Carney announced a sweeping set of new measures aimed at making groceries and other everyday essentials more affordable, as Canadians continue to face rising costs amid global economic uncertainty.
Speaking in Ottawa, Carney said the government is focused on strengthening the economy while delivering immediate relief to households feeling pressure at the checkout line. The plan combines direct financial support for families with longer-term actions to stabilize food supply chains, strengthen domestic production, and improve competition in the marketplace.
Central to the announcement is the introduction of the Canada Groceries and Essentials Benefit, which replaces the former GST credit. Beginning in July 2026, the benefit will increase by 25 per cent for a five-year period. In addition, eligible Canadians will receive a one-time top-up this year equal to a 50 per cent increase.
Combined, the changes mean a family of four could receive up to $1,890 this year and about $1,400 annually over the following four years. Single individuals could receive up to $950 this year and approximately $700 per year thereafter. More than 12 million Canadians are expected to benefit from the enhanced program.
To address food prices at their source, the government is committing $500 million from the Strategic Response Fund to help businesses absorb supply chain disruptions without passing costs on to consumers. An additional $150 million Food Security Fund will be created to support small and medium-sized businesses and organizations working to stabilize food supply chains.
The government is also introducing immediate tax expensing for greenhouse buildings, allowing producers to fully write off new greenhouse investments made after November 4, 2025, provided they are operational before 2030. The move is intended to increase domestic food production, strengthen long-term supply, and reduce dependence on imports.
To support Canadians facing urgent food insecurity, $20 million will be directed to the Local Food Infrastructure Fund, helping food banks and community organizations deliver more nutritious food to families in need.
Carney also confirmed work is underway on a National Food Security Strategy focused on strengthening domestic food production and improving access to affordable, nutritious food. The strategy will include unit price labelling and expanded oversight by competition authorities to ensure fair practices across food supply chains.
The affordability measures build on earlier actions taken by the government, including income tax cuts for middle-class Canadians, the removal of the federal consumer carbon tax, and GST relief for first-time homebuyers. The government has also made the National School Food Program permanent and committed to automatic enrollment in federal benefit programs to ensure low-income Canadians receive the support they qualify for.
Carney said the government’s goal is to move Canada’s economy from reliance to resilience, creating better-paying jobs while ensuring families have meaningful support now.
He emphasized that affordability and opportunity must go hand in hand, saying Canada is strongest when everyone has a fair chance to get ahead and when economic growth delivers real relief for everyday Canadians.