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Appropriation Act No. 1, 2025-26

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, 2026

Summary#

This is a routine federal “supply” bill. It gives the Government of Canada permission to spend up to about $149.8 billion on departments, agencies, and Crown corporations for the fiscal year that ends March 31, 2026. It covers the parts of government spending that require an annual vote by Parliament.

Key points:

  • Sets an overall spending limit of about $149.8 billion, effective April 1, 2025.
  • Lists funding for most departments and agencies (health, housing, defence, veterans, Indigenous services, transport, and more).
  • Gives two big revenue agencies (Canada Revenue Agency and Canada Border Services Agency) funding that can be used over two years (to March 31, 2027).
  • Cleans the books for old student debts by writing off about $197 million in uncollectable student and apprentice loans.
  • Includes central funds for emergencies and routine adjustments (for example, a $1 billion contingency fund and carry-forward authorities).

What it means for you#

  • General public

    • Government services keep running. Offices stay open, call centres answer, inspections happen, and programs are delivered.
    • Health protection work continues (food and product safety, disease prevention) through Health Canada and the Public Health Agency of Canada.
    • Policing and public safety receive ongoing support (RCMP, emergency preparedness).
  • Travelers and flyers

    • Airport screening and security continue (Canadian Air Transport Security Authority).
    • Border services remain staffed and equipped (CBSA funding spans two years to manage large projects and staffing).
    • Support for VIA Rail and the Windsor–Detroit bridge helps maintain travel options and infrastructure.
  • Families, renters, and homeowners

    • Housing programs and community infrastructure receive funding through the Department of Housing, Infrastructure and Communities.
    • The Canada Mortgage and Housing Corporation is reimbursed for loans forgiven and other costs tied to housing programs.
  • Students and apprentices

    • About $197 million in long-overdue student and apprentice loans are written off, tidying up accounts. This does not change current loan rules, but it clears debts the government cannot collect.
  • Indigenous communities

    • Large operating and contribution funds flow to Indigenous Services and Crown–Indigenous Relations for health, infrastructure, services, and agreements with communities.
  • Veterans

    • Veterans Affairs receives funding for benefits administration and services.
  • Workers and businesses

    • Canada Revenue Agency and Employment and Social Development get operating funds to administer benefits and tax services.
    • Innovation, research, and tourism agencies, as well as regional development agencies, receive contributions that support jobs and investment.
    • CBC/Radio‑Canada, Canada Post, and cultural institutions receive operating and capital support.

Expenses#

Estimated total authorized spending in this bill: about CAD $149.8 billion for 2025–26.

  • Examples of notable allocations in this Act (amounts authorized by this bill):
    • National Defence: operating, capital, and related grants/contributions totaling over $23 billion.
    • Indigenous Services Canada: over $15 billion (operating and contributions combined).
    • Health Canada and the Public Health Agency of Canada: several billion for operating, capital, and contributions.
    • Housing, Infrastructure and Communities: about $5.3 billion in contributions plus operating and capital.
    • Canada Mortgage and Housing Corporation: about $4.8 billion to reimburse housing-related costs.
    • Veterans Affairs: several billion for operations and contributions.
    • CBC/Radio‑Canada: just over $1.0 billion (operating and capital).
    • Canada Revenue Agency (two-year authority): about $3.5 billion operating and $51 million capital.
    • Canada Border Services Agency (two-year authority): about $1.9 billion operating and $133 million capital.
  • Central votes managed by the Treasury Board Secretariat include:
    • $1.0 billion for contingencies (urgent or unforeseen needs).
    • Up to $3.0 billion for operating budget carry-forward and $750 million for capital carry-forward from the prior year.
    • $600 million for pay-related pressures (parental leave, severance, etc.).
    • About $1.9 billion toward public service insurance and benefits.
  • Unused funds generally expire (“lapse”) at year-end. For the two-year items (CBSA and CRA), funds can be spent up to March 31, 2027.
  • This bill does not change tax rates or most legislated benefit payments (those are set by other laws). It authorizes the “voted” spending needed to run programs and services.

Proponents' View#

  • Keeps essential services running across the country by giving departments the funds they need on time.
  • Supports priorities like health protection, housing, infrastructure, Indigenous services, defence, and veterans’ care.
  • Provides stability for big service agencies (CRA, CBSA) by allowing two-year funding for complex projects and staffing.
  • Includes prudent tools like a contingency fund and carry-forwards to handle emergencies and routine budget timing.
  • Writes off long-uncollectable student debts to keep the government’s books accurate and transparent.
  • Sets clear limits and lapsing rules, which help control costs and improve accountability.

Opponents' View#

  • The overall amount is very large, adding to total government spending; critics worry about pressure on deficits and debt.
  • Central funds (contingencies and carry-forwards) give flexibility but reduce line-by-line detail at the time of approval.
  • The bill’s size and complexity make thorough scrutiny hard; some items were already advanced by special warrants before Parliament voted.
  • Two-year spending for some agencies may lessen annual oversight.
  • Some allocations to Crown corporations (for example, CBC/Radio‑Canada, Canada Post, VIA Rail) or international contributions may be seen as too high or not targeted enough.
  • The bill authorizes spending but does not spell out outcomes, so results will depend on later implementation and oversight.

Timeline

Jun 17, 2025 • House

First reading - Second reading - Consideration in committee - Report stage - Third reading

Jun 18, 2025 • Senate

First reading

Jun 25, 2025 • Senate

Second reading

Jun 26, 2025 • Senate

Third reading - Royal assent

Economics
Healthcare
Education
Infrastructure
National Security
Technology and Innovation
Labor and Employment
Housing and Urban Development
Criminal Justice
Trade and Commerce
Social Welfare
Indigenous Affairs

Votes

Vote 89156

Division 16 · Agreed To · June 17, 2025

For (57%)
Against (41%)
Paired (2%)
Vote 89156

Division 17 · Agreed To · June 17, 2025

For (57%)
Against (41%)
Paired (2%)
Vote 89156

Division 18 · Agreed To · June 17, 2025

For (57%)
Against (41%)
Paired (2%)