Extra Federal Funds and Debt Relief

Summary#

This is a federal supply bill that gives departments extra money for the fiscal year ending March 31, 2020. It implements Supplementary Estimates (B), 2019–20. The authority is retroactive to April 1, 2019, and a small portion can be spent up to March 31, 2021 (Schedule 2).

• Total new authority: CAD $3,793,291,722 (Schedules 1 and 2).
• Includes large transfers for Indigenous services and communities (Schedule 1).
• Forgives 98 Crown‑Indigenous land‑claims debts worth $919,028,970 (Schedule 1).
• Writes off 33,098 Canada Student Loan debts worth $180,432,220 (Schedule 1).
• Adds funds for National Defence, infrastructure, housing, and several agencies (Schedule 1).
• A small amount can be spent in 2020–2021 for CBSA, CRA, and Parks Canada (Schedule 2; Order of payment (2)).

What it means for you#

• Households

  • Student loan accounts: The government writes off 33,098 Canada Student Loan debts totaling $180,432,220. A write‑off is an accounting step (the debt is removed from the books), not legal forgiveness (Schedule 1: Employment and Social Development, 90b). Effective April 1, 2019.
  • Housing programs: CAD $79,489,591 reimburses CMHC for loans forgiven and other costs under the National Housing Act. This supports ongoing federal housing programs; it does not change eligibility rules (Schedule 1: CMHC 1b).

• Indigenous peoples and organizations

  • Community services and programs: CAD $1,015,453,271 in contributions through Indigenous Services Canada for services delivered to First Nations and Inuit (Schedule 1: Indigenous Services, 10b). Effective April 1, 2019.
  • Land‑claims debts: 98 debts totaling $919,028,970 owed to the Crown for comprehensive land claims are forgiven. Forgiveness (legal cancellation) reduces these organizations’ debt burdens (Schedule 1: Crown‑Indigenous Relations, 60b). Effective April 1, 2019.

• Workers and service users

  • Public services continue: Added operating and capital funds for departments and agencies help maintain services in 2019–2020 (for example, RCMP CAD $56,577,229; Public Health Agency CAD $13,046,296; National Defence CAD $795,074,269) (Schedule 1).
  • Research and innovation: Added funds to the Canadian Space Agency (CAD $70,108,862) and National Research Council (CAD $6,935,893) support projects already underway (Schedule 1).

• Businesses and non‑profits

  • Regional development: Extra contributions are available through agencies such as Western Diversification (CAD $5,524,559), FedDev Ontario (CAD $4,434,631), and ACOA (CAD $3,457,536). These are top‑ups to existing programs (Schedule 1).
  • Trade and international work: Added funds for Global Affairs include contributions related to development, trade, and security (Schedule 1: Foreign Affairs, 10b and 20b).

• Provinces, municipalities, and local agencies

  • Infrastructure: CAD $137,666,675 for the Office of Infrastructure Canada (operating, capital, and contributions) supports ongoing federal infrastructure agreements (Schedule 1).
  • Transport projects: Smaller contributions for efficient and green transport initiatives are added (CAD $311,153 total) (Schedule 1: Transport, 10b and 15b).

Expenses#

Estimated net cost: CAD $3,793,291,722 (FY2019–2020), including at least CAD $1,099,461,190 in non‑cash debt actions.

• Bill sets a maximum of CAD $3,793,291,722 based on Supplementary Estimates (B), 2019–20 (Bill — Appropriation clause).
• Schedule 1 total: $3,786,898,978; Schedule 2 total: $6,392,744 (Schedules 1–2).
• Some items are non‑cash accounting changes, not payments from the Consolidated Revenue Fund (e.g., write‑offs under FAA s.25(2) and forgiveness under FAA s.24.1) (Adjustments clauses; Schedule 1).

Notes:

• Items in Schedule 2 can be paid on or before March 31, 2021; unspent balances then lapse (Order of payment (2)).
• Non‑cash items affect the government’s accounts but do not require cash payments (Adjustments clauses; Schedule 1).

Proponents' View#

• Ensures continuity of public services by topping up departmental operating and capital votes late in the fiscal year (e.g., National Defence $795,074,269; RCMP $56,577,229) (Schedule 1).
• Provides major, targeted support to Indigenous peoples, including $1,015,453,271 in contributions for services and the legal forgiveness of $919,028,970 in land‑claims debts, which removes liabilities from negotiating groups (Schedule 1: Indigenous Services 10b; Crown‑Indigenous Relations 60b).
• Cleans up uncollectible student loan accounts, improving administration and reducing collection costs, while not changing program rules for new borrowers (Schedule 1: Employment and Social Development, 90b).
• Supports economic activity and research through regional development agencies and science bodies (e.g., CSA $70,108,862; NRC $6,935,893) (Schedule 1).
• Adds flexibility by allowing a small part of funding to be spent in 2020–2021, reducing year‑end spending pressure (Schedule 2; Order of payment (2)).

Opponents' View#

• Retroactive approval (effective April 1, 2019) reduces ex‑ante parliamentary scrutiny and may weaken accountability for spending already underway (Effective date (2)).
• The late‑year timing raises “March rush” risks, where departments may have difficulty spending well before March 31, 2020; while Schedule 2 extends some authority, most items still lapse at year‑end (Order of payment (2); lapse rules).
• Large non‑cash adjustments (e.g., $919,028,970 forgiveness; $180,432,220 write‑offs) are authorized without detailed criteria in the bill text, making it hard for the public to assess case‑by‑case fairness (Schedule 1; Adjustments clauses).
• Many votes include authority to “expend revenues” under the Financial Administration Act, which can reduce direct parliamentary control over gross spending levels (multiple Schedule 1 votes referencing FAA s.29.1 and s.29.2).
• Limited program‑level detail and performance metrics in an appropriation act make it difficult to link these sums to measurable outcomes for people and communities (Schedules 1–2).