Back to Bills

Appropriation Act No. 1, 2026-27

Full Title:
An Act for granting to His Majesty certain sums of money for the federal public administration for the fiscal year ending March 31, 2027

Summary#

  • This bill gives the federal government permission to spend up to about CAD $86.4 billion during the 2026–27 fiscal year. It keeps government programs and services running until Parliament passes the full-year budget.

  • The money comes from Canada’s main bank account (the Consolidated Revenue Fund). It covers part-year funding for many departments and programs, based on the planned Main Estimates.

  • Key points:

    • Provides “interim” funding equal to a few months (from three to eleven months) of many departments’ annual budgets so services do not stop.
    • Funds large areas such as Indigenous services and agreements, health, veterans’ benefits, jobs and skills programs, immigration, policing, parks, bridges, and IT systems that support government.
    • Sets aside central contingency funds and a defence and security envelope that can be allocated as urgent needs arise.
    • Allows the Canada Revenue Agency’s funding in this bill to be used and accounted for through March 31, 2028.
    • Sets maximum amounts for some international support, including contributions, loans, and guarantees tied to global development and Ukraine-related financing.
    • Unspent amounts generally expire at year-end under normal rules.

What it means for you#

  • Everyone
    • Government services continue without a pause (passports, border and airport security, tax processing, Service Canada, parks, and more).
    • This bill does not raise taxes or fees; it is permission to spend money already planned.
  • Indigenous Peoples and communities
    • Ongoing funding for health, education, child and family services, infrastructure, and agreements continues through Indigenous Services and Crown–Indigenous Relations.
  • Families, workers, and newcomers
    • Money flows for job training, student supports, disability supports, and settlement and immigration services so programs can keep operating.
  • Veterans and their families
    • Funding continues for disability benefits, health care supports, and case management, plus the Veterans Review and Appeal Board.
  • Travelers and commuters
    • Airport screening (CATSA), RCMP policing, Marine Atlantic ferries, Windsor–Detroit bridge work, and major bridges in Quebec receive operating funds to keep moving people and goods.
  • Students, researchers, and the arts
    • Grants continue through science and social science research councils, Telefilm, and Canadian Heritage programs.
  • Businesses and non-profits
    • Federal contracts, grants, and contribution agreements can be paid on time, helping cash flow for suppliers and community partners.
  • Public servants
    • Salaries and benefits continue, including public service insurance programs.

Expenses#

Estimated amount authorized: about CAD $86.4 billion in interim funding for 2026–27.

  • This is spending authority, not a new program by itself. It covers roughly 3–11 months of many departments’ planned budgets until full-year approvals pass.
  • Examples of notable interim amounts in this bill (rounded):
    • Indigenous Services: about $16.9B (operations and community grants/contributions)
    • Crown–Indigenous Relations: about $7.2B (operations and grants/contributions)
    • Employment and Social Development (grants/contributions): about $6.3B
    • Health: about $4.8B (operations plus grants/contributions)
    • Housing, Infrastructure and Communities (grants/contributions): about $3.1B
    • Veterans Affairs: about $3.4B (operations plus grants/contributions)
    • RCMP: about $1.7B (operations and member health benefits)
    • Public Services and Procurement: about $1.2B (government-wide services)
    • Treasury Board — Public Service Insurance: about $1.68B
    • Treasury Board central votes: about $0.92B for contingencies and $0.92B for defence and security initiatives
    • Canada Revenue Agency (can be used through March 2028): about $1.21B
    • Foreign Affairs, Trade and Development (international aid/trade/security): about $1.40B
    • Shared Services Canada (government IT): about $0.92B
  • International finance limits included in this bill:
    • Up to $304M in payments and US$916M in loans to the International Development Association (World Bank group).
    • Guarantees up to €200M via the European Bank for Reconstruction and Development for Naftogaz (Ukraine) through 2030–31.
    • Guarantees up to US$1B for World Bank loans to Ukraine through 2051–52.
    • Up to $222M in contributions to international financial institutions in 2026–27.
  • Any unspent amounts generally lapse at year-end (with CRA and certain items allowed to carry into the next year as specified).

Proponents' View#

  • Keeps the lights on: ensures paycheques, benefits, and services continue while Parliament reviews the full budget.
  • Predictable cash flow for provinces, Indigenous partners, non-profits, researchers, and businesses that rely on federal payments.
  • Maintains commitments to Indigenous Peoples and veterans by keeping key programs funded.
  • Supports core services Canadians use daily, from airport screening and policing to tax filing and passports.
  • Central contingency and defence funds let the government respond quickly to emergencies, cyber issues, or global events.

Opponents' View#

  • Size and pace: interim spending is large, raising worries about overall spending growth and deficits.
  • Limited line-by-line debate: interim approvals use fractions of annual budgets, which can reduce detailed scrutiny early in the year.
  • Flexibility vs. oversight: central contingency and defence envelopes give ministers room to shift funds without detailed program-by-program votes.
  • Long-dated guarantees and international supports (including for Ukraine) create future financial exposure that gets little attention in an interim bill.
  • Risk of waste or lapses if departments overestimate needs, or if funds are not deployed efficiently within the year.