The federal government is rolling out a sweeping set of affordability measures aimed at easing the rising cost of groceries and essential goods, as Prime Minister Mark Carney positions his new government to confront economic uncertainty at home and abroad.
Speaking in Ottawa, Carney said Canada’s rapidly shifting global environment demands a clear focus on “what we can control,” including strengthening the domestic economy, protecting workers, and ensuring Canadians can afford everyday necessities.
“Our government is focused on building a stronger economy – to create more career opportunities and higher wages,” Carney said. “In parallel, we are bringing down costs to make life more affordable. That’s how we’ll empower more Canadians with greater certainty, security, and prosperity – now, and into the future.”
At the centre of the announcement is the launch of the Canada Groceries and Essentials Benefit, a redesigned and expanded version of the former GST Credit. Beginning in July 2026, the benefit will increase by 25 per cent for five years, with an additional one-time payment equivalent to a 50 per cent boost this year.
According to the government, the combined measures mean a family of four could receive up to $1,890 in 2026, followed by approximately $1,400 annually over the next four years. Single Canadians could receive up to $950 this year, and about $700 per year thereafter.
More than 12 million Canadians are expected to benefit.
“One of the best things about Canada is that you don’t have to be born rich to succeed,” Carney said. “To protect that fundamental value, we are building a stronger economy that benefits everyone… and making sure Canadians have the support they need now.”
Beyond direct household support, the government is moving to address structural pressures driving food prices.
A total of $500 million will be set aside from the Strategic Response Fund to help businesses absorb supply chain disruptions without passing added costs on to consumers. An additional $150 million Food Security Fund will be created under the Regional Tariff Response Initiative to support small and medium-sized enterprises and the organizations that work with them.
To reduce production costs and boost domestic food supply, the government is introducing immediate expensing for greenhouse buildings, allowing producers to fully write off eligible greenhouse investments acquired after November 4, 2025, and brought into use before 2030.
The government will also provide $20 million to the Local Food Infrastructure Fund to help food banks and community organizations deliver more nutritious food to families facing immediate hardship.
Looking longer-term, Ottawa confirmed it is developing a National Food Security Strategy, focused on strengthening domestic production and improving access to affordable, nutritious food.
The strategy will include measures such as unit price labelling and expanded support for the Competition Bureau, particularly in monitoring and enforcing competition across food supply chains.
Finance Minister François-Philippe Champagne said the approach balances short-term relief with long-term resilience.
“Our government is taking direct action to make life more affordable for Canadians,” Champagne said. “We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition, and supply chains to build a more resilient, affordable economy for the future.”
Agriculture and Agri-Food Minister Heath MacDonald added that the measures are designed to support both families and the agriculture sector.
“Many Canadians have been feeling the pressure of rising costs for far too long,” MacDonald said. “By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system.”
Industry Minister Mélanie Joly said restoring competition and strengthening supply chains will be key to lowering prices at the checkout.
“Strengthening supply chains and restoring real competition means more fairness at the checkout and real relief for Canadian families,” she said.
Monday’s announcement builds on a series of affordability measures already introduced by the Carney government, including a cut to the first marginal personal income tax rate, GST relief for first-time homebuyers, and the cancellation of the federal consumer carbon tax in April 2025.
Budget 2025 also made the National School Food Program permanent and introduced Automatic Federal Benefits, aimed at ensuring millions of low-income Canadians receive the support they qualify for without needing to apply.
As global pressures continue to shape economic conditions, the government says its approach is rooted in resilience rather than dependence.
“We’re building Canada strong,” Carney said. “Because we’re strongest when we look after each other and when we ensure everyone has the chance to get ahead.”
Conservative Leader Pierre Poilievre used social media both before and after the federal announcement to sharpen his party’s affordability narrative, framing the government’s measures as insufficient and positioning rising food prices as evidence of broader economic mismanagement.
In posts shared a day before the announcement, Poilievre argued that Canada’s high food prices reflect a disconnect between government messaging and lived reality. He attributed rising grocery costs to structural barriers in the economy, calling for increased domestic development, infrastructure expansion, and improved movement of goods. The messaging emphasized productivity, resource development, and economic output as long-term solutions, while portraying current government actions as rhetorical rather than results-driven.
Following the Prime Minister’s announcement, Poilievre intensified his criticism by linking food inflation directly to food insecurity. Referencing data from Food Banks Canada, he highlighted a sharp rise in food bank usage, describing the scale of demand as unprecedented and drawing attention to the growing number of children affected. The post framed increased reliance on food banks as a measure of policy failure rather than a temporary economic shock.
Across both statements, Poilievre’s messaging consistently contrasts government affordability measures with on-the-ground indicators such as food bank usage and inflation rankings among G7 countries. The approach reinforces a core Conservative theme that cost-of-living pressures are the result of systemic policy choices, not global volatility, and that economic growth and infrastructure development are central to restoring affordability.
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