January 26, 2026

Ottawa, Ontario

With global uncertainty continuing to affect prices and supply chains, Canada’s new government says it is focused on what it can control: strengthening the economy and easing the cost of living for Canadians.

While long-term economic changes take time, the government says Canadians need help now. Over the past year, it has introduced measures such as tax cuts for millions of Canadians, faster homebuilding, and protections for key social programs. Today, Prime Minister Mark Carney announced additional steps aimed specifically at lowering the cost of groceries and everyday essentials.

Putting more money in Canadians’ pockets

The government is introducing the Canada Groceries and Essentials Benefit, replacing the former GST Credit. Beginning in July 2026, the benefit will increase by 25 percent for five years. In addition, Canadians will receive a one-time payment this year equal to a 50 percent increase.

Together, this means:

A family of four could receive up to $1,890 this year and about $1,400 per year for the next four years. A single individual could receive up to $950 this year and about $700 per year for the next four years.

More than 12 million Canadians are expected to benefit from this support.

Strengthening food supply and addressing food insecurity

To help keep prices down at the checkout, the government is investing in food supply chains and domestic production.

$500 million from the Strategic Response Fund will help businesses manage supply chain disruptions without passing extra costs on to consumers. A new $150 million Food Security Fund will support small and medium-sized businesses and organizations that work with them. Food producers will be allowed to immediately write off the cost of new greenhouse buildings acquired after November 4, 2025, encouraging investment and increasing domestic food supply. $20 million will be added to the Local Food Infrastructure Fund to help food banks and community organizations provide more nutritious food to families in need.

The government is also developing a National Food Security Strategy to address the root causes of food insecurity. This will include measures such as unit price labelling and stronger oversight to ensure fair competition across food supply chains.

Building a stronger, more affordable Canada

The government says its approach is two-fold: create better-paying jobs through a stronger economy, while lowering everyday costs for families. The goal, it says, is to give Canadians greater stability, security, and opportunity—now and in the future.

What leaders are saying

Prime Minister Mark Carney said the measures reflect a core Canadian value: that everyone deserves a fair chance to succeed.

“Our government is building an economy that works for everyone—one that creates good jobs, pays better wages, and helps families manage the rising cost of living. We’re making sure Canadians get the support they need today, while building a stronger Canada for tomorrow.”

Finance Minister François-Philippe Champagne said the new measures offer immediate relief while laying the groundwork for long-term affordability.

Agriculture Minister Heath MacDonald emphasized support for farmers and food producers, while Industry Minister Mélanie Joly highlighted the importance of competition and resilient supply chains in bringing grocery prices down.

Quick facts

Today’s announcement builds on earlier affordability measures, including:

A personal income tax cut for millions of Canadians. GST relief for first-time homebuyers. The cancellation of the federal consumer carbon tax. Permanent funding for the National School Food Program. Automatic federal benefits to ensure eligible Canadians receive support without extra paperwork. Measures to increase competition and lower costs in telecom and financial services.

More details on affordability measures can be found in Budget 2025.