The federal government is investing significant financial resources on an ongoing basis to support provincial and territorial governments in delivering their programs and services to Canadians.
Today, the Honourable 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 2025‑26, 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 2027‑28.
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.
