Budget 2026: Health and childcare
Budget 2026 proposes $1.2 billion in 2027-28 to extend mental health and home care agreements until March 31, 2028, and projects the Canada Health Transfer rising to $67.7 billion by 2030-31 under its existing escalator. On child care, it reaffirms previously announced funding of up to $5.4 billion over two years and a four-year Ontario extension, and projects transfers declining after temporary funding ends.
Health transfers and agreements
Projected Canada Health Transfer growth, a one-year extension of mental health and home care funding, and scheduled expiry of dedicated transfers.
Sources
The Canada Health Transfer (CHT) is projected to increase from $57.4 billion in 202627 to $67.7 billion in 2030-31, supported by the CHT growth guarantee of at least 5% until 2027-28, after which it will grow in line with a three-year moving average of nominal GDP growth, with funding guaranteed to grow by at least 3% per year.
Budget 2026 - Masters of our Destiny · PDF p. 351Full cited page
The Canada Health Transfer (CHT) is projected to increase from $57.4 billion in 202627 to $67.7 billion in 2030-31, supported by the CHT growth guarantee of at least 5% until 2027-28, after which it will grow in line with a three-year moving average of nominal GDP growth, with funding guaranteed to grow by at least 3% per year.
Provide $1.2 billion in 2027-28 to extend federal funding agreements with the provinces and territories for mental health and addictions services, as well as home and community care, until March 31, 2028.
Budget 2026 - Masters of our Destiny · PDF p. 225Full cited page
Provide $1.2 billion in 2027-28 to extend federal funding agreements with the provinces and territories for mental health and addictions services, as well as home and community care, until March 31, 2028.
Extending this funding will help relieve immediate pressures on provincial and territorial health care systems while creating the conditions for a structured dialogue on the long-term productivity and sustainability of health care systems across Canada.
Budget 2026 - Masters of our Destiny · PDF p. 225Full cited page
Extending this funding will help relieve immediate pressures on provincial and territorial health care systems while creating the conditions for a structured dialogue on the long-term productivity and sustainability of health care systems across Canada.
Health agreements with provinces and territories are projected to remain at $4.3 billion in 2026-27 and 2027-28, reflecting $2.5 billion per year for tailored bilateral agreements, $1.2 billion per year in transfers supporting home and community care and mental health and addictions services (which is being extended for one year in Budget 2026), and $600 million per year in transfers for long-term care. The latter two funding sources expire after 2027-28.
Budget 2026 - Masters of our Destiny · PDF p. 351Full cited page
Health agreements with provinces and territories are projected to remain at $4.3 billion in 2026-27 and 2027-28, reflecting $2.5 billion per year for tailored bilateral agreements, $1.2 billion per year in transfers supporting home and community care and mental health and addictions services (which is being extended for one year in Budget 2026), and $600 million per year in transfers for long-term care. The latter two funding sources expire after 2027-28.
Health programs and tax measures
Health Infrastructure Fund, Emergency Treatment Fund, GST/HST health changes and the equipment deduction.
Sources
Budget 2026 proposes to provide $2 billion over two years, starting in 2027-28, for the Health Infrastructure Fund. Facilities funded will provide care before people reach a crisis point, helping address the mental health and substance use challenges that are contributing to homelessness, instability, and growing pressures on communities across Canada.
Budget 2026 - Masters of our Destiny · PDF p. 212Full cited page
Budget 2026 proposes to provide $2 billion over two years, starting in 2027-28, for the Health Infrastructure Fund. Facilities funded will provide care before people reach a crisis point, helping address the mental health and substance use challenges that are contributing to homelessness, instability, and growing pressures on communities across Canada.
Budget 2026 proposes to provide $100 million over two years, starting in 2027-28, to renew Health Canada’s Emergency Treatment Fund.
Budget 2026 - Masters of our Destiny · PDF p. 225Full cited page
Budget 2026 proposes to provide $100 million over two years, starting in 2027-28, to renew Health Canada’s Emergency Treatment Fund.
Budget 2026 proposes to add devices that are specially designed for alternating electric field therapy for use by an individual with cancer to the list of medical devices eligible for zero-rating under the GST/HST.
Budget 2026 - Masters of our Destiny · PDF p. 433Full cited page
Budget 2026 proposes to add devices that are specially designed for alternating electric field therapy for use by an individual with cancer to the list of medical devices eligible for zero-rating under the GST/HST.
This measure would apply to qualifying supplies of massage therapy services made after Budget Day.
Budget 2026 - Masters of our Destiny · PDF p. 432Full cited page
This measure would apply to qualifying supplies of massage therapy services made after Budget Day.
The Productivity Mega Deduction will help health care professionals that own their practice invest in the medical equipment, diagnostic technologies, and other tools that support faster diagnosis and treatment.
Budget 2026 - Masters of our Destiny · PDF p. 226Full cited page
The Productivity Mega Deduction will help health care professionals that own their practice invest in the medical equipment, diagnostic technologies, and other tools that support faster diagnosis and treatment.
In September 2026, we announced the Productivity Mega Deduction.
Budget 2026 - Masters of our Destiny · PDF p. 121Full cited page
In September 2026, we announced the Productivity Mega Deduction.
Child care funding
Previously announced child care funding and projected transfer levels.
Sources
In June 2026, we announced an investment of up to $5.4 billion over two years to keep child care affordable and provide stability while federal, provincial, and territorial governments work to strengthen the system for the future.
Budget 2026 - Masters of our Destiny · PDF p. 208Full cited page
In June 2026, we announced an investment of up to $5.4 billion over two years to keep child care affordable and provide stability while federal, provincial, and territorial governments work to strengthen the system for the future.
Through the extension, Ontario will receive nearly $12 billion in federal funding over the next four years, from March 31, 2027, to March 31, 2031.
Budget 2026 - Masters of our Destiny · PDF p. 208Full cited page
Through the extension, Ontario will receive nearly $12 billion in federal funding over the next four years, from March 31, 2027, to March 31, 2031.
These investments help parents enter or remain in the workforce, supporting household incomes and Canada’s economic growth.
Budget 2026 - Masters of our Destiny · PDF p. 208Full cited page
These investments help parents enter or remain in the workforce, supporting household incomes and Canada’s economic growth.
Canada-wide early learning and child care transfer payments are expected to decrease from $10.3 billion in 2026-27 to $8.8 billion in 2030-31, reflecting the phasing out of the Early Learning and Child Care Infrastructure Fund in 2026-27 and the ending of a temporary top-up of $5.4 billion over two years, starting in 2026-27, provided to ensure the sustainability of the system.
Budget 2026 - Masters of our Destiny · PDF p. 351Full cited page
Canada-wide early learning and child care transfer payments are expected to decrease from $10.3 billion in 2026-27 to $8.8 billion in 2030-31, reflecting the phasing out of the Early Learning and Child Care Infrastructure Fund in 2026-27 and the ending of a temporary top-up of $5.4 billion over two years, starting in 2026-27, provided to ensure the sustainability of the system.
bilateral agreements are subject to a temporary 3% funding increase for four years, beginning in 2027-28.
Budget 2026 - Masters of our Destiny · PDF p. 352Full cited page
bilateral agreements are subject to a temporary 3% funding increase for four years, beginning in 2027-28.
Analysis of cited budget provisions. Proposals and forecasts are distinguished from implemented measures.
