Ottawa has rolled out a new Canada Groceries and Essentials Benefit, aiming to give financial relief to millions of Canadians as grocery prices continue to rise. The Hill Times
Canada’s new government says global instability continues to shake economies and raise daily costs for families. Food prices, in particular, keep climbing and stretching household budgets. In response, Ottawa says it will focus on steps it can control to make life more affordable and reduce hunger across the country.
During a visit to Sainte-Thérèse, Quebec, Marjorie Michel, the Minister of Health, spoke about the government’s plans to help people who feel the greatest pressure at the grocery store. She toured La Moisson - Supermarché Santé, where she highlighted new support aimed at low- and modest-income households.
New Benefit Targets Everyday Needs
The government plans to introduce the Canada Groceries and Essentials Benefit, announced earlier by the Prime Minister. The benefit will support more than 12 million Canadians, including about 2.8 million people in Quebec. Officials say the program will help families afford food and other daily necessities during a period of economic strain.
The new benefit builds on existing support by increasing payments over several years. Starting in July 2026, the government will raise the benefit by 25 per cent for five years. It will also provide a one-time payment this year equal to a 50 per cent boost.
With both measures combined, a family of four will receive up to $1,890 this year and about $1,400 each year for the next four years. A single adult will receive up to $950 this year and about $700 annually for the following four years.
Helping Keep Food Prices Down
Beyond direct payments, the government outlined several actions to address food costs and supply challenges. It will set aside $500 million from the Strategic Response Fund to help businesses manage supply chain problems without raising prices at checkout.
Ottawa will also create a $150 million Food Security Fund under an existing regional initiative. This fund will support small and medium-sized businesses, along with organizations that help them, as they respond to higher costs and trade pressures.
To support farmers and food producers, the government will allow immediate tax write-offs for greenhouse buildings. Producers who acquire greenhouses after November 4, 2025, and put them into use before 2030 will qualify. Officials say this move will encourage investment and boost Canada’s food supply over time.
Support for Food Banks and Long-Term Planning
The government will provide $20 million to the Local Food Infrastructure Fund to help food banks meet rising demand. The funding will support national, regional, and local groups that deliver nutritious food to families in need.
Ottawa also plans to develop a National Food Security Strategy. The strategy will focus on strengthening domestic food production and improving access to affordable, healthy food. It will include steps toward clearer unit price labels and stronger oversight of competition in food supply chains.
