2026 Spring Economic Update: Key measures for addressing food insecurity and poverty in Canada

Summary

Nearly 10 million people in Canada live in food insecure households – that’s almost a quarter of the population struggling to afford the basics. For most areas of the country, this is not a food access issue. It’s about income and the way wealth and power are shared in our society. Food insecurity mostly affects people living on low and unstable incomes, and as the cost of living continues to rise, more households are being pushed to the edge. For Indigenous communities, particularly in northern and remote regions, it’s also about access to traditional food systems.

The federal government’s 2026 Spring Economic Update (the Update, for short) outlines a range of measures aimed at addressing affordability pressures, some of which had already been announced months prior. In this briefing note, we highlight the key elements most relevant to Right To Food’s policy and advocacy priorities.

These fall into five main areas:

1. Income supports and poverty reduction
2. Food insecurity and food systems
3. Indigenous food systems and communities
4. Housing and cost of living, and
5. Broader affordability measures.

Bottom line

The Update includes short-term affordability supports and some targeted investments but does not address the root cause of food insecurity: inadequate and unstable incomes. Most measures are temporary or incremental.

1. Income supports & poverty reduction

Key measures

Canada Groceries and Essentials Benefit (CGEB)

• Initially announced in January 2026, this measure expands the GST/HST Credit:
  • one-time top-up in the 2025-2026 payment year, and
  • a 25% increase for the next five years.
• Payments expected up to:
  • $1,890/year for a family of four
  • $950/year for a single adult
• The above payments would amount to:
  • $272 additional support per year ($23 a month) for a family of four
  • $136 additional support per year ($11 a month) for a single adult
• Expected to reach 12+ million Canadians—at least 80% would be single adults

Disability Tax Credit (DTC) changes

• Easier access through simplified application for individuals with a formal diagnosis of certain long-lasting medical conditions
• Expands eligibility pathways by broadening the list of medical practitioners who can certify eligibility for the DTC
• Recognise provincial or territorial public guardians and trustees as being qualified to certify for the DTC for adults in their care
• These changes are expected to increase access to the Canada Disability Benefit

Canada Pension Plan (CPP) contribution reduction

• Reducing the base CPP contribution rate from 9.9 per cent to 9.5 per cent, starting on January 1, 2027
  Could lead to a modest increase in take-home pay, e.g., about $133/year for a $70k earner
• Yet in the grand scheme of things, this is a limited, regressive benefit that will allow higher earners to save more while low-income workers gain little, potentially reducing future retirement income security

Employment Insurance (temporary measures)

• Extensions for seasonal workers: up to five additional weeks of EI regular benefits for a maximum of 45 weeks to eligible seasonal workers in 13 economic regions

Community Volunteer Income Tax Program (CVITP) Grant

• $18.7 million to the Canada Revenue Agency to renew and expand the grant so people can file taxes in their communities and access tax-based benefits

2. Food insecurity and food systems

Key measures

Initially announced in January 2026

• Canada Groceries and Essentials Benefit: presented as the main food affordability measure (see above for more details)
• Local Food Infrastructure Fund: $20 million to support food banks and other organizations to deliver more nutritious food to families in need
• Food Security Fund: $150 million business focused support for small- and medium-sized enterprises
• Develop a National Food Security Strategy to strengthen domestic food production and improve access to affordable, nutritious food

Initially announced in February 2026

• $6.3 million towards the Northern Isolated Community Initiatives (NICI) Fund to keep supporting local and Indigenous food production systems
• $30 million top-up to the Nutrition North Canada Retail Subsidy to ensure nutritious food and essential items are more affordable in 124 isolated northern communities

Announced in the 2026 Spring Economic Update

• Intend to amend food safety and pesticide laws to consider food security and cost of food.

3. Indigenous food systems and communities

Key measures

Nutrition North and Northern food programs

• $36 million total support towards the NICI Fund and Nutrition North Canada Retail Subsidy (see more details above)

Continued Indigenous Housing Strategy funding

• About $2.7 billion towards broader investments in health, education, and community services in Indigenous communities

4. Housing and cost of living

Key measures

• Accelerate over $7 billion in low-cost loans under the Apartment Construction Loan Program to speed up the construction of up to 16,500 new rental homes
• Intention to consult on possible additional financing measures to support the continued supply of more owner-occupied homes in advance of Budget 2026
• $1.7 billion to provinces and territories to increase housing supply
• Continued Indigenous housing investments (see more details above)

5. Other affordability measures

Key measures

• Temporary fuel excise tax suspension (estimated to provide up to $2.4 billion in relief)
• Capping no sufficient funds fees at $10, expected to save consumers up to $600 million annually
• Launching a Whole-of-Government Competition Plan to strengthen productivity and affordability by ensuring competition is prioritised in all policies
• Up to $7 billion by 2030 in agricultural investment to stabilize food supply

Assessment

Right To Food’s Spring Economic Update assessment:

• No coordinated, national plan to tackle food insecurity, which remains incredibly high across the country
• Measures announced are piecemeal and inadequate in addressing the scale and depth of the food insecurity crisis
• No announcements regarding structural reforms of income supports such as modernizing Employment Insurance
• Canada Groceries and Essentials Benefit is currently inadequate and benefit amount falls far short from the version proposed by our organization and the broader sector
• National Food Security Strategy risks sidelining income security by predominantly focusing on food systems
• Limited new investment in Indigenous-led food systems
• Housing measures seem inadequate to deliver the range of affordable and supportive housing the country needs at scale it is required; it is also missing a Renters’ Bill of Rights, as flagged by housing bodies such as the National Right To Housing Network
• Measures signal a continued reliance on temporary benefits and charitable food responses
• Market approach to affordability challenges (e.g. tax cuts) rather than a values-based approach

While the government appears concerned about the affordability challenges facing millions of Canadians, it has yet to deliver the kind of meaningful reforms needed to materially improve people’s day-to-day lives. Most troubling is the absence of any coordinated national plan to reduce food insecurity at the scale required, despite rates remaining near generational highs across the country.

The measures announced thus far are largely piecemeal and inadequate relative to the scale and depth of the crisis. While programs such as the Canada Groceries and Essentials Benefit represent movement in the right direction, they fall short of what we have called for and what’s required to reduce food insecurity meaningfully. The benefit, in its current form, provides only a modest quarterly support that is unlikely to address hunger at a population or household level. Similarly, the government’s proposed National Food Security Strategy risks focusing too narrowly on food systems while sidelining the role of income security.

More broadly, the current approach continues to reflect status-quo thinking that relies too heavily on temporary benefits, modest affordability measures, and charitable food responses rather than pursuing deeper structural reform. There have been no major announcements around modernizing Employment Insurance or strengthening long-term income supports despite a labour market that is increasingly defined by precarious work and economic volatility. Investments in Indigenous food systems also remain limited relative to the scale of need and the importance of Indigenous food sovereignty.

Prime Minister Carney’s plan remains heavily oriented toward economic growth and market competitiveness rather than seizing this moment of uncertainty to redefine what economic security means in Canada. Given the rise of inequality in our country, we are concerned that the benefits of growth will not trickle down to households struggling to make ends meet today. The 2.4 million children living in food-insecure households deserve more than incremental relief measures. They deserve a serious, coordinated, federal plan to tackle the structural drivers of food insecurity.

Overall takeaway and next steps

The Spring Economic Update acknowledges growing affordability pressures and introduces some short-term relief measures. However, it does not meaningfully address the primary driver of food insecurity in Canada: inadequate and unstable incomes. While significant new spending has been directed toward areas prioritized by the government (i.e. defence), investments in income supports and poverty reduction remain comparatively modest relative to the scale of the crisis.

This reflects a troubling mismatch between the severity of food insecurity and the policy response it has received thus far. Without stronger and more durable income supports, millions of people will continue to struggle to afford the basics, with serious consequences for health, financial stability, and overall quality of life. In a country as wealthy as Canada, we will continue to communicate the unacceptability of this reality and work with our network of partners across the country to demand solutions.

Take action

Join us in calling on the federal government to:

• Deliver adequate, long-term income supports for people on low incomes
• Invest in Indigenous-led food systems through sustained, flexible funding
• Ensure the National Food Security Strategy focuses on affordability and income

As we head into Budget 2026, this is a critical moment to push for solutions that match the scale of the crisis.

Get involved

• Read our blog analysis of the Spring Economic Update
• Connect with our Poverty Action Unit
• Reach out to collaborate on advocacy efforts