Introduction

Today, November 5, 2026, the Honourable François-Philippe Champagne, Minister of Finance, tabled a new federal budget (“Budget 2026”), setting out the Government of Canada’s spending promises and policy proposals for the next year and beyond.

The second budget of the Carney government, Budget 2026 builds on measures announced in Budget 2025 and on the Government’s key priorities over the past year. These proposals and priorities include making investments to “build Canada strong” and to help everyday Canadians with the cost of living.

For Canadian charities, Budget 2026’s biggest announcement is its proposal to eliminate the excess corporate holdings regime for private foundations, starting in the 2027 tax year. The removal of this complicated and burdensome restriction on the ability of private foundations to hold corporate shares should help free up these foundations to focus on grantmaking and other charitable activities. It is a positive development for the sector.

Budget 2026 also promises new tax credits and funding aimed at supporting organizations, beneficiaries, and causes across the sector. These announcements and pledges are also encouraging. Not only does a stronger social sector “build Canada strong” by employing more Canadians and attracting greater investment, but the sector also continues to face the dual pressures of higher costs and increased demand amid Canada’s current affordability crisis. Just last month, two out of five Canadians reported relying on services provided by a charity or a non-profit organization (NPO) in the past year.

What does Budget 2026 propose for Canadian charities and non-profits?

Budget 2026 contains several proposals that will impact, or be of interest to, Canada’s charities and NPOs. These proposals include:

  1. Eliminating the excess corporate holdings regime for private foundations;
  2. Increasing the penalties for failing to file annual information returns;
  3. Extending the deadline for filing notices of objection;
  4. Delegating certain administrative decisions to the Minister of National Revenue;
  5. Streamlining how the Government approves foreign charities;
  6. Introducing a new way to calculate the Clergy Residence Deduction; and
  7. Establishing a “Build Canada Exchange” to recruit experts temporarily to the Government.

Absent from Budget 2026 is Recommendation 16 of the House of Commons Finance Committee, which called on the Government to create a dedicated “social sector fund”. The proposed fund would invest in shared infrastructure and capacity building for both charities and NPOs and be financed by a levy on foundations (that would count towards foundations’ disbursement quota obligations). The Committee’s recommendation lacked details but generated both curiosity and concern across the sector. It does not appear in Budget 2026.

New proposals and measures for charities and non-profits

Eliminating the excess corporate holdings regime for private foundations

The most significant regulatory change for charities in Budget 2026 is the elimination of the excess corporate holdings regime (“ECHR”) for private foundations. This removes a longstanding and administratively burdensome restriction on private foundations’ ability to hold shares in a corporation.

Under the ECHR, private foundations are generally required to monitor and report their shareholdings alongside those of certain non-arm’s-length persons. Where combined shareholdings exceed 20% and the foundation itself holds more than 2%, divestiture obligations can arise. Failure to divest when required can lead to monetary penalties and potential deregistration as a charity. The detailed rules are very complex and have created considerable compliance challenges for many private foundations.

The ECHR was introduced in 2007 when the exemption from capital gains tax on donations of publicly listed securities was extended to private foundations. Prior to 2007, this exemption was only available for gifts of publicly listed securities to charitable organizations and public foundations. The Government extended the exemption to private foundations while simultaneously introducing restrictions intended to prevent donors and other related parties from using foundation shareholdings to exercise corporate control for private benefit.

Budget 2026 proposes to remove the ECHR and revert to the rule that applied to private foundations prior to 2007. Like public foundations now, private foundations will be prohibited from acquiring control of a corporation. Under this rule as it currently applies, public foundations cannot acquire for consideration more than 50% of the voting shares of a corporation (subject to certain exceptions, notably for shares acquired by way of gift). This prohibition will be extended to private foundations. Budget 2026 does not otherwise signal any substantive changes to this rule.

This change is proposed to apply to taxation years beginning on or after January 1, 2027.

This proposed change should be welcome news to most private foundations. It has always been an open question whether the complexity of the ECHR, and the relatively low threshold past which divestiture is required, is commensurate with the real risk of abuse and self-dealing by private foundations and their founders. The Government states that this change is intended to “allow private foundations to better focus their efforts on their charitable and grantmaking activities for the benefit of the charitable sector and all Canadians.”  Particularly for foundations seeking to make impact investments, it is hoped that this change will remove one of the regulatory roadblocks to this work.

Increasing the penalties for failing to file annual information returns

Budget 2026 proposes to increase the penalty for certain tax-exempt organizations that fail to file their required annual information returns on time.

Currently, the Income Tax Act (Canada) (the “ITA“) imposes a $500 penalty on a registered charity, registered foreign charity, registered Canadian amateur athletic association, or registered journalism organization that fails to file a required information return when due. Budget 2026 proposes to double this penalty to $1,000, effective for the 2028 and subsequent taxation years.

The Government has indicated that the increase is intended to address the declining deterrent effect of the existing fixed penalty and to broadly account for inflation since the penalty was introduced. Budget 2026 also proposes adjusting this and certain other fixed penalties under the ITA for inflation every five years, helping to ensure that the penalties remain meaningful and proportionate over time.

Extending the deadline for filing notices of objection

Budget 2026 proposes extending the deadline for charities, NPOs, and other qualified donees for filing notices of objection.

Taxpayers are generally limited to 90 days after the Minister of National Revenue issues a notice of assessment to file a notice of objection. Filing an objection allows the taxpayer to request an administrative review of the assessment. Charities, NPOs, and other qualified donees can be subject to assessments in certain situations. For example, charities can receive an assessment of a penalty or revocation tax.

Budget 2026 proposes to extend the deadline for filing a notice of objection to one year after the day the notice of assessment was sent. This measure will take effect three months after the implementing legislation receives Royal Assent.

Delegating certain administrative decisions to the Minister of National Revenue

The ITA provides that certain rules will be set out in the regulations to the ITA, the Income Tax Regulations (the “Regulations“). These rules are more detailed operational procedures designed to facilitate the implementation of the more general rules set out in the ITA. For example, the Regulations set out what information must be included in official donation receipts and how to calculate certain parts of the disbursement quota. In addition, the Regulations can name certain entities as “prescribed donees” for gifts of Canadian real property made by non-residents. If a non-resident makes a gift of Canadian real property to a prescribed donee, they can elect that their proceeds of disposition are equal to their adjusted cost base, avoiding tax on the disposition of the property. Similar provisions are also available for Canadian donors who make donations of capital property to qualified donees.

In Budget 2026, the Government announced that certain administrative requirements for charities and other qualified donees that are currently prescribed in the Regulations will be delegated to the Minister of National Revenue. We will have to wait to see the draft legislation to see the extent of the changes, but Budget 2026 indicates that the content of donation receipts and the determination of prescribed donees will be delegated to the Minister. Any such changes will take effect 90 days after the enacting legislation receives Royal Assent.

Introducing a new way to calculate the Clergy Residence Deduction

For Canadians who rent or own their own accommodations and who qualify for the Clergy Residence Deduction (“CRD“), Budget 2026 proposes an alternative method for calculating the CRD.

By way of background, Canadians are eligible to claim the CRD if they meet both a status requirement and a function requirement. First, the claimant must be a member of the clergy, a member of a religious order, or a regular minister of a religious denomination. Second, the claimant must be in charge of, or minister to, a diocese, parish, or congregation, or be engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination. Canadians meeting both requirements can claim the CRD by deducting it against their remuneration.

Under the current rules:

  • eligible Canadians who receive remuneration in the form of housing provided by their employers can deduct the entire value of their housing benefit from their income; and
  • eligible Canadians who rent or own their own accommodations may deduct the least of:
    • the greater of:
      • $1,000 x the number of months (max: 10) in the year during which the individual would qualify for the CRD; and
      • 1/3 of the individual’s remuneration for the year from the office or employment;
    • the actual rent and eligible utilities paid or, if the residence is owned by the individual or their spouse or common-law partner, the fair rental value of the residence including eligible utilities, less amounts claimed in respect of the same accommodation, during periods of qualifying employment; and
    • the individual’s remuneration for the year from their office or employment

      (the “Detailed Method“).

Budget 2026 proposes to allow CRD-eligible Canadians who own or rent their own accommodations to deduct a flat amount in a year, as an alternative to using the Detailed Method. The proposed rules governing this flat amount are:

  • The flat amount is $1,000 for each month in which the individual is CRD-eligible, up to a maximum of $12,000 for one year.
  • If two CRD-eligible spouses live in the same residence, only one spouse can deduct $1,000 for a month in which both qualify for the CRD.
  • If either spouse chooses to deduct the flat amount for a year, neither spouse is allowed to claim the CRD using the Detailed Method for that year.

Streamlining how the Government approves foreign charities

Budget 2026 proposes to change how foreign charities are approved.

A foreign charity is a non-resident charity that (i) has received a gift from the Government, (ii) carries out disaster relief activities, provides urgent humanitarian aid, or carries out other activities in the national interest of Canada, to the satisfaction of the Minister of National Revenue, and (iii) has been registered as a qualified donee by CRA.

Currently, under subsection 149.1(26) of the ITA, the Minister of National Revenue is required to consult with the Minister of Finance before registering a foreign charity as a qualified donee. Budget 2026 seeks to remove this consultation requirement, with the goal of streamlining the approval process for foreign charities.

Currently, only two foreign charities are registered as qualified donees. While this procedural change simplifies the registration process to some degree, it remains to be seen whether there will be a significant increase in the number of foreign charities that are registered.

The change takes effect on Royal Assent of the implementing legislation.

Establishing a “Build Canada Exchange” to recruit experts temporarily to the Government

Budget 2026 proposes to repurpose the Interchange Canada program as the “Build Canada Exchange”.

The repurposed program will allow talented people employed by charities, NPOs (including academia specifically), and businesses to assume government roles on a temporary basis. The intent is to allow Canada to respond quickly to global volatility by tapping into Canadians with special expertise, without requiring them to join the core public administration of Canada permanently.

The renaming and highlighting of this program in Budget 2026 suggest that the Government intends to increase the number of assignment postings on the Build Canada Exchange, to access capabilities and experience in the charity and NPO sectors, particularly on international matters.

Generally, the “host” organization compensates the “home” organization for the individual’s salary and benefits during the period of the assignment but leaves the individual as an employee of their current employer to facilitate the individual’s reintegration.

There may also be opportunities for organizations that are at the forefront of their sectors to similarly recruit from the Canadian core public administration for temporary full- or part-time (maximum three-year) assignments.

Previously announced measures to be implemented

Budget 2026 confirms that the Government intends to proceed with a number of proposed measures and legislative amendments that were previously announced in past federal budgets and legislative updates.

For charities and NPOs, noteworthy measures include the new proposed NPO reporting requirements and specific amendments to the ITA that the Government introduced on August 12, 2024 (and which it proposed in Budget 2024).

Readers wishing for more details about the August 12, 2024 amendments should review our Budget 2024 and Budget 2025 newsletters, which summarize these proposed amendments, including changes to the contents of official donation receipts, the foreign charities regime, and CRA audit powers.

Budget 2026 notes that the Government will adopt all these previously announced measures, taking into account “any modifications resulting from consultations and deliberations since their release”. However, Budget 2026 provides no details about these modifications.

New proposed NPO reporting requirements

Budget 2026 confirms that the Government will move ahead with its new proposed NPO reporting requirements, which will take effect for NPOs with fiscal periods beginning on or after January 1, 2027.

Currently, not all NPOs are required to file an information return with CRA. Incorporated NPOs must file a T2 corporate return annually. NPOs (whether incorporated or unincorporated) must file a T1044 NPO information return if (1) the NPO’s total passive income in its last fiscal period exceeds $10,000; or (2) the NPO’s total assets at the end of the preceding fiscal period exceed $200,000; or (3) the NPO was required to file a T1044 for a previous fiscal period.

Under proposed legislative amendments released in January 2026, the Government proposed adding a fourth triggering event for filing a T1044: (4) the NPO has total gross revenues over $100,000.

Additionally, under the proposed January amendment, NPOs that do not meet the thresholds for filing the T1044 return would be required to file a new short-form return containing basic information about the NPO, if their total gross revenues exceed $10,000 and if they are an “organization”. Whether an unincorporated organization must file the new short-form return will depend on whether it has a sufficient organizational structure. Relevant factors may include: a defined purpose, a constitution or bylaws, a particular organizational structure or hierarchy, and defined governance roles.

The legislative amendments have not received Royal Assent. It is expected, though not confirmed by Budget 2026, that the Government will pass implementing legislation in the remaining weeks of the fall sitting of Parliament.

New and ongoing funding opportunities for charities and non-profits

Budget 2026 contains many new and ongoing spending promises, tax credits, and incentives that will interest charities and NPOs. We have organized some of these key proposals by sector/group category below. We encourage readers to look for more details about these funding opportunities as they become available.

2SLGBTQI+ Canadians

  • $60M over four years, starting in 2027-28, with $15M ongoing in renewed funding under the Federal 2SLGBTQI+ Action Plan to support 2SLGBTQI+ community initiatives.

Arts, media and culture

Budget 2026 announces a number of measures to support the community and arts sector.  This is a welcome development, given the seemingly virtual absence of support for these sectors in the Budget 2025.  Items such as funding for recreational facilities and ice rinks, a new Canada Creative Credit, support for digital library facilities and funding for Canada’s 160th anniversary, renewing the Canada Strong Pass, and access to the Productivity Mega Deduction all represent increased support and recognition of the importance of community building in Canada. Key funding pledges for this sector include:

  • $1.5B over nine years, through the Build Communities Strong Fund, for Community Recreational Facilities and Ice Rinks to build, expand and renovate them. Of this, $750M is for ice rinks and $750M for other recreational facilities.
  • $300M in 2027-28 for the Canada 160 Fund to support Canada 160 celebrations, Heritage Minutes, the Trans Canada Trail and community spaces.
  • $10M in 2027-28 for the Building Communities through Arts and Heritage program to support local festivals for Canada’s 160th anniversary.
  • $15M in 2027-28 for the Canada Arts Presentation Fund to support performing arts events for Canada’s 160th anniversary.
  • $20M over four years, starting in 2027-28, and $5.0M ongoing, for the Canada Book Fund to help Canadian publishers bring more Canadian-authored books to readers.
  • $32.2M over four years, starting in 2027-28, and $9.5M in future years, for a Free National Digital Collection of Canadian books to cover licensing, a lending platform, promotion and outreach.
  • $46.3M over five years, starting in 2026-27, and $11.5M ongoing, to Canada’s national museums and the National Battlefields Commission to make admission free year-round for children and youth under 25.
  • $783.1M over five years, on a cash basis, starting in 2026-27, to support Canada’s national museums, the National Battlefields Commission, the National Arts Centre, and Library and Archives Canada to repair and renew aging facilities, protect national collections, and sustain exhibitions, performances, and services.
  • $60M over four years, starting in 2027-28, on a cash basis, to the National Gallery of Canada to expand access to and engagement with Canadian and Indigenous art through travelling exhibitions and improved digital access to its collections.
  • $393.2M over three years, starting in 2027-28, on a cash basis, to 10 departments and agencies to advance Canada’s Francophonie leadership objectives and support the logistics and security required to host the 2028 Francophonie Summit.
  • $76M in 2027-28 to support the renewal of the Canada Strong Pass for another summer, including expanded discounted access to Indigenous-led museums and cultural centres.
  • $10M in 2028-29 to Canadian Heritage for the Terry Fox Humanitarian Awards to strengthen financial support for post-secondary students from communities across Canada who exemplify Terry Fox’s humanitarian ideals.

Black Canadians

Defence

  • $2.3B over five years, starting in 2027-28, on a cash basis to the Department of National Defence (“DND”) Defence Drone Initiative, with a portion of this funding sourced from funding already provisioned.
  • Up to $2.7B over five years, starting in 2026-27, on a cash basis from previously announced funding, including the following priority measures:
    • Phase 2 of the Canadian Quantum Champions Program to support Canadian companies in scaling up development.
    • Expand the Launch the North initiative to establish sovereign, medium-lift Canadian space launch capability.
    • Extend initiatives including BOREALIS, Defence Industry Assist, and the Regional Defence Investment Initiative.
    • Recapitalize the Canadian Defence Industry Resilience Program to enable strategic investments critical to Canadian Armed Forces (“CAF”) combat.
  • $6.0B over 10 years, starting in 2027-28 on a cash basis, and $579.5M ongoing to Canadian Security Intelligence Service (“CSIS”) to expand its presence and capabilities.
  • $192.5M over four years, starting in 2027-28, and $42.5M ongoing to the Canada Border Services Agency in support of establishing border technology infrastructure.

Environment, climate change, conservation, and clean technology

  • $1.6B over 10 years, starting in 2027-28, including:
    • $713.8M for renewable energy and capacity-building projects that help Indigenous, rural, and remote communities transition from diesel and fossil fuels to renewable energy sources; and
    • $929.1M to replace and upgrade aging electricity infrastructure in northern communities. This funding will support the Mayo Hydro Facility and Atlin Hydro Expansion projects.
  • $6B over six years, starting in 2028-29, to support the deployment of emerging electricity generation technologies.
  • $587M over five years, starting in 2027-28, to Environment and Climate Change Canada to renew the Zero-Emission Vehicle Infrastructure Program to support the installation of over 55,000 additional EV chargers in areas where the infrastructure is needed most.
  • $500M over six years, starting in 2027-28, to Natural Resources Canada, to strengthen fibre supply chains and support provinces, territories, Indigenous partners, and industry in advancing forest management and stewardship, and deploying new technologies and practices.
  • $3.6B over 10 years on a cash basis, starting in 2027-28, to Parks Canada to support the continued management and preservation of capital assets across Canada’s national parks, national marine conservation areas, and national historic sites.
  • $282.7M over 11 years, starting in 2027-28, on a cash basis, and $18M ongoing, to Parks Canada to establish and operate two new National Marine Conservation Areas.
  • $9.2M over four years, starting in 2027-28, to Parks Canada, and $10.5M over four years, starting in 2027-28, to Fisheries and Oceans Canada to support feasibility assessments for up to three additional National Marine Conservation Areas in the North.

Gender equality

  • $8.0M over four years, starting in 2027-28, and $2.0M ongoing, for the Women’s Program to support organizations working to advance equality for women and address systemic barriers, including by supporting women entrepreneurs, increasing women’s representation in leadership roles, and addressing gender-based violence.

Health

  • $11M over two years, starting in 2027-28 (about $5.0M of it from existing resources), to the Public Health Agency of Canada for the Autism Framework and Strategy to renew funding for AIDE Canada and fund community-led autism projects.
  • $100M over two years, starting in 2027-28, to Health Canada for the Emergency Treatment Fund to support local responses to substance use and overdose, such as mobile outreach, naloxone and land-based healing.
  • $14.9M over four years, starting in 2027-28, with $5.0M in future years, for the National Women’s Health Research Initiative to support research on women’s health.
  • $2.0B over two years, starting in 2027-28, for the Health Infrastructure Fund to build community mental health and addictions facilities that provide care before individuals reach a crisis point and help address mental health and substance use challenges contributing to homelessness and instability.

Housing, infrastructure and communities

  • $11.2B over four years, starting in 2027-28, and $17.8B in future years, to support investments aimed at helping people move from homelessness into stable housing, including:
    • $1.8B over four years, starting in 2027-28, and $3.2B in future years, to establish a new Integrated Supports Fund, delivered through Build Canada Homes, to:
      • support projects that integrate housing with health, mental health, addictions, and social supports;
      • develop new transitional and supportive housing and adapt existing buildings; and
      • mobilize public, private, and philanthropic capital to support an integrated housing and care model.
    • $3.6B over four years, starting in 2027-28, and $6.4B in future years, through Build Canada Homes to construct new supportive and transitional housing across Canada, with federal funding supporting capital costs and provincial and territorial partners expected to fund ongoing operations and wraparound services, including employment, training, income, and health supports.
  • $2.1B over three years, starting in 2028-29, and $4.4B in future years, to Housing, Infrastructure and Communities Canada to renew the Reaching Home initiative and the Veterans Homelessness Program for an additional 10 years and maintain community-led homelessness prevention and support services, including dedicated support for veterans experiencing homelessness.
  • $124M over three years, starting in 2027-28, to Agriculture and Agri-Food Canada for the Local Food Infrastructure Fund to help food banks and community organizations buy food and invest in community food infrastructure.
  • $64M over four years, starting in 2027-28 and $9.0M ongoing to Public Safety Canada to support activities of the Canada Centre for Community Engagement and Prevention of Violence, including $56M over four years starting in 2027-28, and $7.0M ongoing to expand the Community Resilience Fund.
  • $51B over 10 years, starting in 2026-27, and $3.0B per year ongoing, for the Build Communities Strong Fund to support major community infrastructure projects across Canada, including support for the following projects:
    • Chinese Canadian Museum – Wing Sang Building Rooftop Garden Revitalization, Vancouver, BC
    • Mackie and Hawthorne Park Fieldhouse Replacements, Delta, BC
    • Hume Park Master Plan Implementation, New Westminster, BC
    • Chimney Heights Park, Surrey, BC
    • Cowichan Valley Basket Society, Duncan, BC
    • Silver Springs Community Centre Building Expansion, Calgary, AB
    • ArtsCommon 118, Edmonton, AB
    • Edmonton Federation of Community Leagues, Edmonton, AB
    • NorthWest Regional Recreation, Event and Emergency Protection Complex, Beauval, SK
    • Globe Theatre, Regina, SK
    • Tyndall Park Community Centre, Winnipeg, MB
    • Rainbow Resource Centre, Winnipeg, MB
    • YMCA Community Centre, Barrie, ON
    • Northwest London Multi-Use Community Centre, London, ON
    • Bright’s Grove Library Expansion, Sarnia, ON
    • North Bay YMCA Facility Renewal, North Bay, ON
    • Water’s Bend Park, Nepean, ON
    • SEIU National Centre for Training and Development, Toronto, ON
    • York University School of Medicine, Vaughan, ON
    • Agrandissement des plateaux sportifs de l’Omni-Centre, Phase 1, Pincourt, QC
    • Requalification de l’église de Notre-Dame-du-Laus, Notre-Dame-du-Laus, QC
    • Rénovation et mise aux normes du Pantoum, Québec, QC
    • Rénovation de la bibliothèque Annie-Saint-Arneault, La Tuque, QC
    • Complexe multisports de Gaspé et Gespeg, Gaspé, QC
    • Salle sportive au Centre des loisirs Sainte-Anne, Ville de Sainte-Anne-de-Beaupré, QC
    • Fredericton Regional Aquatics Centre, Fredericton, NB
    • Cornhill Community Hall Kitchen Renovation, Cornhill, NB
    • Dickey Park Track and Field Facility Redevelopment, Amherst, NS
    • Cape Breton University Collaborative Health Annex and College of Health Integration and Advancement, Sydney, NS
    • Cornwall Civic Centre Accessibility and Climate Adaptation, Cornwall, PEI
    • Community Cultural Wellness Centre, Happy Valley-Goose Bay, NL
    • Regulation Softball Field Development, Irishtown–Summerside, NL
    • Kipsigak Arena Replacement, Igloolik, NU
    • Fort Good Hope Arena Rehabilitation, Fort Good Hope, NT
    • Whitehorse Power Centres Project, Whitehorse, YT

Indigenous Canadians

  • $610.3M over four years, starting in 2027-28, $118.1M in 2031-32, and $117M ongoing, for Nutrition North Canada to lower the cost of imported food and support local food harvesting and distribution in remote northern communities.
  • $451.8M over four years, starting in 2027-28, and $48M ongoing (new and existing funding), for the Partnerships for Indigenous Workforce Readiness Fund to support foundational skills and employment training through Indigenous service delivery organizations.
  • $18.5B over 10 years, starting in 2027-28, for the First Nations On-Reserve Infrastructure Program to support the construction and maintenance of infrastructure on reserve, including roads, bridges, schools, health facilities, and water and wastewater infrastructure.
  • $437.9M over five years, starting in 2027-28, for the Post-Secondary Student Support Program to maintain access to post-secondary education and support the next generation of First Nations leaders, professionals, and skilled workers.
  • $6.0B over six years, starting in 2026-27, for Jordan’s Principle to support continued access to health, social, and educational services for First Nations children and ongoing efforts to address barriers to accessing these services.
  • $12.7B over 10 years in First Nations housing and infrastructure.
  • $290.7M over four years, starting in 2027-28, to renew funding for public health workers and initiatives in Indigenous communities to strengthen outbreak response capacity, support communicable disease prevention, and improve the recruitment and retention of public health workers.
  • $3.6M in 2027-28 for the Red Dress Alert pilot to support rapid responses when an Indigenous woman, girl, Two-Spirit, or gender-diverse person goes missing, and to renew federal capacity to coordinate efforts addressing Missing and Murdered Indigenous Women and Girls.
  • $865.6M in 2026-27 for the Emergency Management Assistance Program to respond to emergencies that occurred on reserve and $446.2M ongoing to support future response and recovery from emergencies.
  • $7M in ongoing funding for the First Nations Fire Protection Strategy, supporting fire safety priorities identified by First Nations communities.

Journalism

Budget 2026 announced new support for CBC/Radio-Canada, support for local journalism, and an enhancement to the Canada Journalism Labour Tax Credit (“CJLTC“). These supports reflect a growing concern around the viability of local and traditional news sources. Key funding proposals for this sector include:

  • $134M over four years, starting in 2027-28, and $41M ongoing, to Canadian Heritage for the Local Journalism Initiative (“LJI”) to support independent, diverse local news organizations, especially in rural, remote and underserved communities. The LJI has been operated by Canadian Heritage since 2019. Its key objectives are to support civic journalism, protect editorial independence, support a creative commons distribution of news, and support diversity in reporting.
  • $300M over two years, starting in 2026-27, to CBC/Radio-Canada to strengthen its capacity to meet the evolving needs of Canadians across the country.
  • Budget 2026 proposes to renew the CJLTC for two more years for print journalism. The CJLTC provides qualifying journalism organizations with a refundable 35-per-cent tax credit on the salary or wages paid to eligible newsroom employees. Labour expenditures are capped at $85,000 per eligible employee for a tax year, resulting in an annual credit of up to $29,750 per employee.
  • Budget 2026 also proposes extending the CJLTC to qualifying private audio and audiovisual news organizations in line with support provided to news organizations that produce written news.

Persons with disabilities

Research, development, science, and industry

  • $1B over six years, starting in 2028-29, to the Strategic Response Fund to support large-scale research and development and innovation projects that can strengthen Canada’s long-term competitiveness and growth.
  • $181.4M over four years, starting in 2027-28, $50.4M in future years, and $40.4M ongoing to expand Invest in Canada to add specialized financial sector expertise and establish its presence in key global markets to bring in capital from major investors and multinational corporations.
  • $10M over two years, starting in 2027-28, to the Praxis Spinal Cord Institute to develop new treatments for life-altering medical conditions.
  • $11.4M over three years, starting in 2026-27, to Veterans Affairs Canada to support the commemoration of defining moments in Canada’s military history.
  • $261M over five years, starting in 2027-28, and $14M ongoing, to Natural Resources Canada to develop nuclear supply chains, support research and development, and advance research reactor capacity and readiness.
  • $127M over five years, starting in 2027-28, and $1M ongoing, to Atomic Energy of Canada Limited for research infrastructure, research and development, workforce development, and other strategic nuclear capabilities.
  • $6.2M over four years, starting in 2027-28 to Innovation, Science and Economic Development Canada to support participation in the Global Partnership on Artificial Intelligence.
  • $1.0B over five years, on a cash basis, starting in 2026-27, to establish a Government Transformation Fund that will accelerate information technology projects to improve service delivery to Canadians.

Transportation

  • $37.6M over three years, starting in 2026-27, to launch the first airport operating concession by completing due diligence, developing the concession framework, obtaining specialized commercial and legal advice, and completing a competitive process to select the operator by early 2029.
  • $4.3M over four years, starting in 2026-27, to Transport Canada to develop a Traveller Biometrics Strategy.

Veterans

Youth and children

  • $8.4M over three years, starting in 2027-28, to Public Safety Canada to support the Canadian Centre for Child Protection’s ongoing work in child protection.
  • $12M over three years, starting in 2027-28, to Justice Canada to expand support for Child Advocacy Centres, which provide trauma-informed services to victimized youth and their families.

Many contributors from Miller Thomson’s National Charities and Not-for-Profits Group helped to assemble this special issue of Budget 2026.

Special thanks go to Michelle Boatter, Sarah Fitzpatrick, Adam Greco, Mariah Lechner-Gillard, Bryan Millman, Kaitlyn Nelson, Stephen Hsia, Susan Manwaring, David Tang, Rebekah Timm, and Andrew Valentine.

Please also see Miller Thomson’s Tax Group’s companion article on Budget 2026‘s tax proposals and changes more generally.

Have questions about Budget 2026 and how it affects your organization? A member of our Charities and Not-for-Profits Group would be pleased to speak with you. For more insightful charity law perspectives and timely updates from our group, please subscribe to our Social Impact Newsletter.