Federal government announces transfer of more than $100 billion to provinces and territories

From: Department of Finance Canada

News release

December 23, 2024 - Ottawa, Ontario - Department of Finance Canada

The federal government is investing significant financial resources on an ongoing basis to support provincial and territorial governments in delivering their programs and services to Canadians.

Today, the Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, announced that the federal government will deliver $103.8 billion in major federal transfers to provinces and territories in 2025-26, in addition to other significant financial support. This represents an increase of 4.4 per cent in major transfers compared to 2024-25.

In 2025‑26, the Canada Health Transfer will increase by $2.6 billion to $54.7 billion. This includes a top-up payment of $713 million thanks to the 5 per cent annual increase guaranteed by the federal government under the 10-year health care package announced in February 2023. This marks the first year that top-up payments will be paid under the guarantee, which remains in effect until 2027‑28.

Major federal transfers to provinces and territories also include the Canada Social Transfer, Equalization, and Territorial Formula Financing. In addition to this, the federal government provides other significant annual support to provinces and territories, including $11 billion over 10 years to improve access to home and community care, mental health and addiction services, and $27 billion over five years for a Canada-wide system of affordable early learning and child care. 

Quotes

“A cornerstone of our economic plan is a robust social safety net and effective public health care. This year, we are providing nearly $104 billion in transfers to provinces and territories. That’s close to $2 billion per week, every week, to help ensure that Canadians receive the public services—including health care, post-secondary education, social services and early learning and child care—that they need. Our government will continue to play its part in building a stronger, healthier nation for Canadians from coast to coast to coast.”

- The Honourable Dominic LeBlanc,
Minister of Finance and Intergovernmental Affairs

Quick facts

  • Under the Working Together to Improve Health Care for Canadians Plan, the federal government guaranteed 5 per cent growth to the Canada Health Transfer from 2023-24 to 2027-28 to be paid through top-ups as required. To access their share of the funding, provinces and territories were asked to take steps to improve the collection and management of health data. All provinces and territories have met this condition. 

  • Major federal transfers include the Canada Health Transfer, the Canada Social Transfer, Equalization, and Territorial Formula Financing.

    • The Canada Health Transfer provides long-term predictable funding for health care and supports the principles of the Canada Health Act. The transfer is made on an equal per capita cash basis.
    • The Canada Social Transfer is a transfer in support of post-secondary education, social assistance and social services, early childhood development, and early learning and child care.
    • The purpose of Equalization is to ensure that provincial governments have sufficient revenues to provide comparable levels of public services at reasonably comparable levels of taxation.
    • Territorial Formula Financing helps the three territorial governments fund essential public services, recognizing the higher cost of delivering Canada’s social safety net in the North.

  • The federal government also provides permanent and stable funding for local infrastructure through the Canada Community-Building Fund. In 2025-26, municipalities will receive $2.5 billion.

Associated links

Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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