Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, announced that the federal government will deliver $103.8 billion in major federal transfers to provinces and territories in 2025-26, in addition to other significant financial support. This represents an increase of 4.4 per cent in major transfers compared to 2024-25.
In 202526, the Canada Health Transfer will increase by $2.6 billion to $54.7 billion. This includes a top-up payment of $713 million thanks to the 5 per cent annual increase guaranteed by the federal government under the 10-year health care package announced in February 2023. This marks the first year that top-up payments will be paid under the guarantee, which remains in effect until 202728.
Major federal transfers to provinces and territories also include the Canada Social Transfer, Equalization, and Territorial Formula Financing. In addition to this, the federal government provides other significant annual support to provinces and territories, including $11 billion over 10 years to improve access to home and community care, mental health and addiction services, and $27 billion over five years for a Canada-wide system of affordable early learning and child care.
“A cornerstone of our economic plan is a robust social safety net and effective public health care. This year, we are providing nearly $104 billion in transfers to provinces and territories. That’s close to $2 billion per week, every week, to help ensure that Canadians receive the public services—including health care, post-secondary education, social services and early learning and child care—that they need. Our government will continue to play its part in building a stronger, healthier nation for Canadians from coast to coast to coast,” LeBlanc said.
