Appropriation Act No. 3, 2025-26

Summary#

• This bill gives the federal government up to about CAD $10.85 billion in extra funding for the 2025–26 fiscal year. It covers programs and costs that were not fully funded in earlier budgets.

• It is based on Supplementary Estimates (B) and takes effect as if it started April 1, 2025. Most funds must be used by March 31, 2026, though a small part (mainly for the Canada Revenue Agency) can be used up to March 31, 2027.

• Key points:

  • Adds funding for many departments and agencies, including Health Canada, Indigenous Services, National Defence, Global Affairs, Immigration, and the Canada Revenue Agency.
  • Supports services like VIA Rail passenger trains, Marine Atlantic ferries, airport screening, public health, and food inspection.
  • Provides significant funding for Indigenous communities and Crown‑Indigenous relations.
  • Authorizes a federal loan of up to $200 million to the World Bank and up to $14 million in grants over three years.
  • Allows accounting adjustments after year‑end to finalize the public accounts.

What it means for you#

• General public

  • Government services keep running without interruption. This includes call centres, benefits processing, permits, inspections, and grants.
  • No new taxes or benefit rules are created by this bill. It mainly pays for existing or previously announced activities.

• Travelers

  • VIA Rail receives about $945 million to support passenger rail service, which can help maintain routes and equipment.
  • Marine Atlantic gets funding to continue ferry service between Nova Scotia and Newfoundland and Labrador.
  • Airport screening (CATSA) receives added funds, which can help maintain security operations.

• Families and workers

  • Health Canada and the Public Health Agency receive funds to support health oversight, labs, and programs that backstop provinces and territories.
  • Food safety and inspection get added resources through the Canadian Food Inspection Agency.
  • The Canada Revenue Agency receives funding for operations and capital, which can support tax filing and benefit delivery.

• Newcomers and communities

  • Immigration, Refugees and Citizenship Canada gets added operating and program funds, which can support visa and citizenship processing and settlement programs.
  • Global Affairs Canada receives funds for humanitarian aid, security, and development projects abroad.

• Indigenous peoples

  • Indigenous Services Canada and Crown‑Indigenous Relations receive large additions for programs, services, infrastructure, and agreements with First Nations, Inuit, and Métis partners.

• Commuters and border users

  • The Windsor–Detroit Bridge Authority receives funding to continue work tied to the Gordie Howe International Bridge project.

Expenses#

Estimated annual cost: about CAD $10.85 billion in additional spending authority for 2025–26, plus up to $200 million in loans.

• Total authorized spending: $10,848,320,356 (mostly for 2025–26; a small portion may be used in 2026–27).
• Examples of larger allocations:
  • Indigenous Services Canada: about $1.29 billion.
  • Crown‑Indigenous Relations and Northern Affairs: about $1.38 billion.
  • Health Canada: about $1.64 billion.
  • National Defence: about $1.10 billion.
  • Treasury Board (compensation and public service insurance): about $926.8 million.
  • VIA Rail: about $944.7 million.
  • Global Affairs Canada: about $801.7 million.
  • Immigration, Refugees and Citizenship Canada: about $621.2 million.
  • Public Health Agency of Canada: about $67.0 million.
  • RCMP: about $130.1 million.
  • Canada Revenue Agency (two‑year authority): about $185.7 million.
• International financial items:
  • Up to $200 million in loans to the World Bank (International Bank for Reconstruction and Development) in 2025–26.
  • Up to $14 million in grants to the World Bank over 2025–26 to 2027–28.
• Technical notes:
  • Funds come from the Consolidated Revenue Fund.
  • Some items allow departments to spend revenues they collect to offset costs (no net new cost to taxpayers for those parts).

Proponents' View#

• Keeps essential federal services running by topping up areas that need more money mid‑year.
• Targets pressing needs, including public health capacity, Indigenous community services, immigration processing, and transportation links like VIA Rail and the Windsor–Detroit bridge.
• Supports national security and defence equipment purchases and maintenance.
• Provides humanitarian and development support through Global Affairs at a time of global crises.
• Uses normal, transparent budget tools (Supplementary Estimates and Public Accounts) to show where money goes.

Opponents' View#

• Adds to overall federal spending and may increase the deficit if not offset elsewhere.
• The bill itself is broad and technical, making it hard for the public to see detailed project‑level impacts.
• Two‑year spending authority for some items (like the CRA) may reduce year‑end discipline.
• Treasury Board top‑ups for compensation and insurance are large, and critics may question cost control in the federal workforce.
• Some may disagree with priorities (for example, amounts for defence, international assistance, or specific transport subsidies) compared to other domestic needs.