The federal government released its Spring Economic Update this week, focusing on their plan to build Canada’s economy. Against the backdrop of heightened unaffordability, ongoing housing pressures, and a precarious global economic environment, this Spring Economic Update identifies housing as a key pillar of the government’s approach to support Canadians.  

On housing and homelessness, the update included:  

• A $150 million top up to the Unsheltered Homelessness and Encampments Initiative. 
• Allocation of the previously-promised funding urban, rural, and northern Indigenous housing, for $2.8 billion over five years.  
• Providing flexibility through bilateral housing agreements with territories to ensure survivors of gender-based violence can access a safe place to live.
• Accelerating funding for the Apartment Construction Loan Program to build more rental housing.
• Allocation of funding for the new Canada Groceries and Essentials Benefit (CGEB) to help more than 12 million Canadians afford day-today essentials.
• A number of other housing measures focused on housing development and construction and home ownership.  

The Spring Economic Update also indicates that the federal government will undertake a consultation process to ‘modernize tax rules for charities.’ CAEH will monitor, engage, and keep the sector up-to-date in this process as it moves ahead.

What This Means for People Experiencing Homelessness 

While the Spring Economic Update lays out that housing prices are easing broadly across the country, low-income households continue to bear the brunt of housing unaffordability and the cost-of-living crisis. For Canadians living in deep poverty, housing affordability isn’t improving and cost-of-living pressures are worsening. Low-income households, those most at risk of homelessness, spend most of their budget on food, rent, and energy – all costs that continue to rapidly rise and are outpacing wage growth and stagnant income support rates.  

The new groceries and essentials benefit is a recognition that Canadians are struggling to make ends meet and the top-up to the Unsheltered Homelessness and Encampments Initiative acknowledges the growing homelessness in our communities. While these investments are important signals, we’ll be ramping up our advocacy to expand investments in housing and homelessness that reach those in greatest need – and get the government focused on solving the problem, not managing it.  

What we Didn’t see in the Spring Economic Update 

Over the months leading up to the Spring Economic Update, the Canadian Alliance to End Homelessness (CAEH) has been calling for the federal government to negotiate a Canada Housing Accord to bring all levels of government together around clear goals, timelines, and responsibilities to solve the housing crisis. The investments made in the Spring Economic Update would be strengthened by an Accord, ensuring that every investment dollar goes further through collaboration and clear objectives from all levels of government.

While the Spring Economic Update didn’t include a mention of the government’s upcoming renewal of the National Housing Strategy, we expect the federal government to begin consultation on the new National Housing Strategy in the coming weeks. 

Where we go From Here and What Canada Needs Going into Budget 2026 

As a next step, we’ll continue to work with the government to support the implementation of the investments in the Spring Economic Update. With the funding for urban, rural, and northern Indigenous housing, we’ll be working to ensure the government takes a true by-Indigenous for-Indigenous approach and will continue to push them to deliver this funding without any further delays.  

This is a big year for housing and homelessness. With Canada’s National Housing Strategy (NHS) coming up for renewal in 2027-28, you will hear from us lots on what we want to see in the next strategy and what the government needs to change in its approach to meaningfully reduce homelessness and improve housing affordability in its next strategy. We have been calling for a new NHS that is focused on outcomes including reductions in homelessness. Look out for more details in the coming weeks on CAEH’s recommendations for the next federal budget and our recommendations for the future of the National Housing Strategy. 

We’ll be continuing to push for a Canada Housing Accord, we will be launching a new campaign on the Canada Housing Benefit, and will be developing recommendations for a federal Homelessness Strategy and improvements to Reaching Home 

What You Can Do 

You can help turn this into a reality by calling your local MP, sharing your story, and demanding a Canada Housing Accord. Call now using this link! 

For media inquiries, contact: media@caeh.ca