Federal budget outlines plan to end homelessness within 10 years

OTTAWA — The Carney government is promising to end homelessness in Canada within a decade.

The 2026 budget, released Thursday, offers $11.2 billion to tackle homelessness over four years, starting next year, and $17.8 billion over 10 years.

The federal government says it would “create the conditions to end homelessness” by setting up a new fund to support projects addressing health, addictions and social supports. Finance Minister François-Philippe Champagne called it one of the government’s “flagship” policies.

“We are committed to changing how Canada addresses homelessness and supports those who are unhoused, because every Canadian should have the security of a warm home,” the budget document says.

“This is a call to action for every level of government, Indigenous partners, the private sector, and the not-for-profit sector to come together to reach this goal.”

The budget document says it will help build new supportive and transitional housing across the country. It proposes that Ottawa take on capital costs while provincial and territorial governments foot the bill for ongoing operations and services like training, income and health supports.

The government says it will work to sign agreements with provinces and territories ahead of next year’s spring economic update.

The federal spending plan also commits to expanding non-market housing and building 200,000 new homes across Canada in the next decade.

The strategy proposes building new community mental health and addictions facilities with a $2 billion commitment, along with continued support for the Veterans Homelessness Program.

An estimated 65,000 people across the country were reported as experiencing homelessness, according to a 2025 count by the federal government.

A 2022 Statistics Canada study found nearly one in eight households reported experiencing some form of homelessness at some point. For Indigenous people, that rate was more than one in four.

Tim Tierney, president of the Federation of Canadian Municipalities, said in a media statement the budget enables the kind of decisive action on homelessness that municipalities have long called for, and the federal government deserves credit for its leadership.

“The test now will be turning that commitment into safe homes and lasting support for people,” said Tierney. “Municipalities are ready to do our part. Provinces and territories must step up with the operating funding as well as health and social supports essential to success.”

Carney will travel to Winnipeg Friday to highlight the budget measures aimed at eliminating homelessness.

The budget says Winnipeg is where the new plans will begin, where the government says it is estimated 2,000 people are currently unhoused.

“We will work with public and private partners to build a new Centre for Mental Health and Addictions and add an additional 2,000 new transitional and supportive homes,” the budget document says.

Carney will be joined by Manitoba Premier Wab Kinew, Winnipeg Mayor Scott Gillingham and Montreal Mayor Soraya Martinez Ferrada.

The Canadian Alliance to End Homelessness is holding a national conference in Winnipeg next week.

Alliance CEO Tim Richter said in a media statement the federal budget is “the essential first step in ending homelessness.”

“The critical next step is aligning all provinces, territories and cities around this shared national ambition,” said Richter. “We know homelessness is solvable; communities across Canada are showing progress is possible. We’re ready to get to work.”

NDP Leader Avi Lewis said the inclusion of $11.2 billion over four years to address homelessness was a “good thing,” but the NDP would be watching to make sure that money remains set aside for public sector use.

This report by The Canadian Press was first published Nov. 5, 2026.

-With files from Alessia Passafiume

Catherine Morrison, The Canadian Press