Canada's federal budget includes billions for sovereignty and tackling homelessness

Key Points:

• Prime Minister Mark Carney's second federal budget allocates C$142 billion in new spending over five years, funded by an oil revenue windfall, focusing on national sovereignty, reducing reliance on US trade, and addressing the cost of living crisis.
• The budget includes an C$11.2 billion commitment to end homelessness within a decade, funding supportive housing, mental health, addictions treatment, and increasing grocery benefits for low- and modest-income Canadians.
• Immigration targets remain flat with permanent resident admissions capped at 380,000 annually until 2028, while temporary resident arrivals will be gradually reduced, despite pressures to adjust these levels amid labour shortages and population growth concerns.
• To mitigate the impact of US tariffs on key sectors like steel and forestry, the government plans continued financial support, having already allocated nearly C$44 billion since March 2025 for affected workers and businesses, alongside efforts to diversify export markets.
• The budget promotes Canadian sovereignty through investments in arts and space, including C$2.7 billion for space technology and launch infrastructure, C$32.2 million for a national digital library, and C$2.3 billion for a Canadian-made drone marketplace, plus increased funding for Operation Reassurance in eastern Europe.