Canada's 2026 budget proposes a one-time 50% increase in a federal grocery benefit, giving eligible households extra cash as the government responds to rising costs for everyday necessities.
The proposed supplement to the Canada Groceries and Essentials Benefit could add up to C$339 for a single adult without children and C$679 for a couple with two children. It applies to the 2026-27 benefit year.
Minister of Fisheries Joanne Thompson highlighted the measure Monday during a visit to the Community Food Sharing Association in St. John’s, Newfoundland and Labrador. Fisheries and Oceans Canada said the government also plans automatic benefits and prefilled tax returns to make federal support easier to access for up to 5.5 million low-income Canadians.
The payment is part of a package that EconoTimes previously reported includes about C$22 billion in affordability measures over five years. Thompson said higher prices for essentials have strained household budgets and made it harder for families to plan ahead.
On housing, the budget sets out nearly C$45 billion in cash spending over 11 years. The government says the investment would expand housing outside the private market and put Canada on a path to ending homelessness within 10 years.
The budget proposes C$2 billion for a National Heat Pump Rebate aimed at helping up to 820,000 households install heat pumps, alongside support for home retrofits. Federal estimates put the combined reach of the rebate and related energy-efficiency measures at as many as 1 million homes, with annual energy-bill savings exceeding C$1 billion after full implementation.
The budget also allocates C$610.3 million over four years to Nutrition North Canada, starting in 2027-28. The funding is intended to maintain and expand assistance that helps lower the cost of imported foods and supports food harvesting in northern communities. Another proposed measure, the Build Canada Workers Benefit, is estimated to lift 240,000 people out of poverty.
The government plans to deliver the one-time grocery supplement in early 2027.
