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Appropriation Act No. 3, 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 is a federal appropriations bill. It authorizes the government to spend up to $11.127 billion for the 2026–27 fiscal year (ending March 31, 2027) on items not already funded. The money matches items listed in Supplementary Estimates (A) for 2026–27 and takes effect as of April 1, 2026. The goal is to fund ongoing operations, grants, and projects across departments and agencies.

Key points:

  • Authorizes $11,109,703,047 for in‑year spending (Schedule 1) and $17,533,469 with a two‑year spending window (Schedule 2), totaling $11,127,236,516.
  • Large items include: Crown‑Indigenous Relations and Northern Affairs ($3.108B), Housing/Infrastructure/Communities ($2.206B), National Defence ($1.080B), Canada Post ($673M), and airport security (CATSA) ($740.2M).
  • Provides funds for VIA Rail ($261.8M) and Marine Atlantic ($210.4M), and top‑ups for agencies such as CFIA, Health Canada, Public Safety, and NRC (including $28.5M toward the Thirty Meter Telescope).
  • For Global Affairs, includes grants and raises the authorized cap for payments to Development Finance Institute Canada to $725,087,616, with $22.6M appropriated under that item.
  • Allows certain accounting adjustments after year‑end and sets rules so older appropriations are used before newer ones. Some funds (Schedule 2) may be spent up to March 31, 2028.

What it means for you#

  • General public:

    • No direct change to taxes or personal rights. This bill funds government services and programs already planned in the Supplementary Estimates (A).
    • You may see continued or improved service where funds are added (for example, mail service, airport screening, and passenger rail).

  • Air travellers:

    • Funding for the Canadian Air Transport Security Authority ($740.2M) supports airport screening operations and equipment. This could help maintain security screening capacity.

  • Mail and parcel users:

    • Canada Post receives $673M for purposes under the Canada Post Corporation Act. This supports its public service obligations.

  • Rail passengers:

    • VIA Rail receives $261.8M for operations and capital. This supports ongoing passenger rail service.

  • Indigenous communities:

    • Significant contributions flow through Crown‑Indigenous Relations ($2.761B in contributions) and Indigenous Services ($783.2M in contributions). These funds would likely support agreements, services, and community projects identified in the Estimates.

  • Municipalities and community partners:

    • The Housing, Infrastructure and Communities department receives $2.203B in grants and contributions. This would likely support infrastructure and community projects negotiated through existing programs.

  • Businesses and non‑profits:

    • Regional economic development agencies (e.g., ACOA, FedNor, FedDev Ontario, PacifiCan, CED‑Québec, Western Diversification) receive additional contributions. Eligible firms and organizations may access these through normal program applications.

  • Researchers and cultural sector:

    • NRC receives $31.0M (including $28.5M toward the Thirty Meter Telescope). Telefilm Canada receives $50M. Several national museums and the Canada Council for the Arts receive smaller top‑ups. This could support grants, productions, or projects already outlined in program plans.

Note: Specific project lists and eligibility are set in the Supplementary Estimates (A) and program rules, not in this bill.

Expenses#

Estimated public cost: $11,127,236,516 in additional spending authority for 2026–27.

  • Schedule 1: $11,109,703,047 available for 2026–27 items listed in Supplementary Estimates (A).
  • Schedule 2: $17,533,469 for the Canada Revenue Agency, available to be spent in 2026–27 or 2027–28 (payments allowed up to March 31, 2028).
  • The bill permits certain accounting adjustments after year‑end that do not require cash payments.
  • Unused amounts lapse at year‑end (with standard adjustments), except Schedule 2 which can carry into the following year as specified.
  • The bill does not include a statement on overall deficit or debt impact. No publicly available information.

Proponents' View#

  • The bill appears intended to ensure services and programs have legal spending authority for needs that arose after the main budget, preventing service disruptions.
  • It supports priority areas visible in the line items, such as Indigenous services and agreements, housing/infrastructure, transportation security, postal and rail services, and public health and food safety operations.
  • Using Supplementary Estimates (A) ties spending to detailed items reviewed through the Estimates process.
  • Limited multi‑year authority (for Schedule 2) and standard accounting adjustments could help departments manage timing and close their books accurately.

Opponents' View#

  • One concern is that appropriations list broad items but give little detail on outputs or performance; most specifics are in the Estimates, not in the bill text.
  • The spending authority takes effect retroactively to April 1, 2026, and certain transfers are “deemed” authorized as of that date. This could be seen as limiting Parliament’s ability to adjust spending before it occurs.
  • The bill authorizes large sums for Crown corporations and agencies (e.g., Canada Post, VIA Rail, CATSA) without program‑level conditions in the statute itself.
  • Multi‑year spending permission for Schedule 2 and the “use oldest funds first” rule may make tracking which law funded which payment less clear to the public.
  • The bill does not show the impact on the overall fiscal balance. No publicly available information.