OTTAWA – The federal government has tabled the 2026 budget proposing $142.1 billion in new spending and projecting a steady decline in the deficit.
Here are some highlights from the new fiscal plan.
Museums and culture
The government is renewing the Canada Strong Pass, which offers discounts on Via Rail travel and admission to museums and national parks, for another summer.
The budget is also making admission to Canada’s national museums permanently free for those under 25.
The budget also includes a $783.1 million cash injection over five years for Canada’s national museums, the National Battlefields Commission, the National Arts Centre and Library and Archives Canada. The funds will go to repair and renew aging buildings, protect national collections and support exhibitions, performances and services.
The Wainwright tragedy
The federal budget outlines $25 million over two years, starting in 2026-27, for the Canadian Forces Morale and Welfare Services to support military members, families and communities affected by the deadly fire at Canadian Forces Base Wainwright last month.
Four military members died and dozens were injured while training at the base, about two hours southeast of Edmonton.
The budget also proposes to spend $3 million in 2026-27 to support the Wainwright Military Family Resource Centre.
The budget says the government has a responsibility to support members of the military and the families who stand alongside them.
Adopting AI across the public service
The budget proposes about $1 billion over five years to establish a Government Transformation Fund that it says will speed up IT projects to improve service delivery for Canadians and help make the public service more productive.
It also says the government is moving ahead with “Digital Transformation Canada,” an organization to lead the adoption of AI and other emerging technologies across the public service. The government had announced the plan to create that office in Budget 2025 and says work is now “well underway.”
The government says it will introduce legislation for the delivery, governance and management of digital and information technology services and capabilities across the public service.
Sharon DeSousa, national president of the Public Service Alliance of Canada, says the government is rolling out AI across the federal government “without meaningful guardrails to protect people’s privacy.”
Digging through the archives
The budget proposes $12 million over four years to archive the records of former prime minister Justin Trudeau.
The document says the funding will allow Library and Archives Canada to acquire and preserve the records and give Canadians access to them.
Former prime minister Stephen Harper officially launched his archival collection earlier this year. That collection includes more than a million photos, a quilt and a hockey card.
Investing in Canada’s spy agency
As part of its pledge to strengthen Canada’s national security, the federal government has committed $6 billion over 10 years starting next year — and $579.5 million in the years after that — to help the Canadian Security Intelligence Service expand its presence and capabilities.
The budget says the funding will help strengthen Canada’s ability to protect its national security and act independently in a “changing threat environment.”
It says the funding will help CSIS engage with Canadians, reduce Canada’s reliance on foreign partners and better protect citizens from terrorism, foreign interference and espionage.
Countering radicalization
The federal government says it will increase funding for radicalization prevention as young people face increased exposure to violent extremist content online.
This year’s budget says $64 million will be given to Public Safety Canada over four years, and $9 million in the following years, to support the Canadian Centre for Community Engagement and Prevention of Violence.
RCMP Heritage Centre
The government intends to amend the Museums Act to establish the RCMP Heritage Centre as a national museum.
The centre, which opened in 2007 in Regina, documents more than 100 years of RCMP history.
The federal government announced in May 2025 it supported turning the centre into a national museum but the legislation to make it happen has not yet been introduced. The budget suggests the change will be included in an upcoming budget implementation bill.
Support for northern communities
The federal government is earmarking $610 million over four years for the Nutrition North subsidy program, which is meant to help offset high grocery prices in the North.
Inuit Tapiriit Kanatami, the organization that represents Inuit in Canada, says the program has failed to actually improve food security and reduce prices.
A chunk of change for Canadian content
The federal budget includes the government’s promised $600 million in funding for the cultural sector — but only for one year.
In June, Ottawa announced it would provide $600 million in annual funding for Canadian content to replace financial contributions from streamers previously mandated by the CRTC.
The budget earmarks the money for the 2026-27 fiscal year, which means it will be provided by March.
But while the government previously said the funding would be annual, the money is not included in the government’s plans for future years.
You’ve got (more expensive) mail
Starting next year, it will cost $2 to send a letter within Canada as the government moves to hike the price of stamps. Currently, a regular mail letter costs $1.44 to send.
The cost of stamps will go up seven per cent per year after that.
The government estimates it will increase costs for most consumers by about $6 per year, and $9 for a small business — evidence of how infrequently most people send snail mail.
The increase comes as Canada Post continues to bleed money. It posted a $1.5 billion deficit in 2025, driven by declining volumes of both letter and parcel mail.
Energy and major projects
Ottawa is expanding and prolonging a number of tax credits to help implement the national electricity strategy it announced earlier this year. Those measures are expected to cost the government nearly $40 billion in lost revenue.
The government also is setting aside more than $500 million to encourage exports of Candu nuclear reactors around the world — one of the pillars of the nuclear strategy released in June.
The federal government also says it will pay the entire construction cost of the Mackenzie Valley Highway, estimated at $3.1 billion. The highway was referred to the major projects office in March and is being considered for fast-tracking as a project of national interest.
The Northwest Territories government had been looking for Ottawa to cover three-quarters of the project cost.
Land and air travel
The budget outlines a plan to reinforce Canada’s aging border technology.
The budget proposed $192.5 million over four years, starting next year, and $42.5 million in the years after that, to support the Canada Border Services Agency’s work on “modernizing and stabilizing” border technology infrastructure.
The budget said Canada’s borders see millions of travellers and goods and services cross each year and border infrastructure depends on reliable digital systems. It says aging border technology has challenged the systems’ reliability, increasing the risk of disruptions for travellers, businesses and airports.
The budget also outlined Canada’s plan to find private investment through long-term operating concessions for four of the country’s largest airports.
It says experienced investors would operate airports for 40 to 50 years while Canada retains ownership of airport lands and assets. It also says operators would be subject to strong oversight to protect travellers.
To launch the first airport operating concession, the budget proposes to provide $37.6 million over three years, starting next year. It says the funds would help develop the concession framework, obtain specialized commercial and legal advice and complete a competitive process to select an operator by early 2029.
The budget says legislation would have to be introduced.
Mental health funding
The Canadian Institute for Health Information says nearly 30 per cent of adults reported having a mental health crisis in 2023.
The budget says the government will provide $1.2 billion in 2027-28 to extend funding agreements between the federal government and provinces and territories for mental health and addictions services.
It says that funding will also include home and community care.
Overseeing digital safety
The budget includes $176.3 million over five years for a new regulator to be called the Digital Safety and Data Protection Commission of Canada.
The commission would take charge of enforcing the Liberal government’s proposed digital safety legislation, which includes a ban on social media for kids under 16.
It also would enforce the government’s proposed privacy legislation, taking over responsibility for the private sector from the privacy commissioner.
This report by The Canadian Press was first published Nov. 5, 2026.
— Written by Catherine Morrison, Anja Karadeglija, Nick Murray, Alessia Passafiume and Alyssa Wheeler
Read more on the federal budget at thestar.com
