Federal budgets tell a lot about the government. They reveal priorities and send signals about what to expect and how Canadians should act. Below is the ALO analysis of last week's federal budget. We focus on how the budget impacts the nation-building projects we think will build a liveable Canada.
The Urgency
Housing experts estimate we need $40 billion per yearto build the over 4million affordable housing units low to middle income Canadians need. Our letter to the Federal Housing Minister in early September outlined the actions the government should take to start making this happen.In mid September the Prime Minister announced his government would set aside $13 billion over four years,specifically to get non-market homes built across Canada. This is housing controlled by non-profits that offer much more affordable rents than private landlords (read more here).
Budget 2025The budget reveals that only $7.3 billion over five years is allocated to build non-market housing. Over $4 billion is set aside for eliminating the HST forfirst time homebuyers who purchase a home for under $1.5 billion. While relief for first time homebuyers is welcome, it shouldn't be at the expense of building non-market housing.
The Bottom Line:The budget set aside less than $2 billion per year for non-market housing. This is a far cry from the $40 billion we need.
The Urgency
Canada's food and water security is being threatened:
--Food prices keep rising and over 2,750 acres of of prime farmland have been lost on average every day based on the latest census figures (Ontario alone accounts for 319 acres).
--We're losing the wetlands and watersheds that clean our water. At least 80 acres of wetlands are lost every day in Canada. Watershed health is worsening.
--Recent provincial and federal laws are removing the few safeguards against further destruction.
Budget 2025
The Budget did not allocate new money or suggest new actions to reverse these worrying trends. Rather, it focused on "nation-building" projects that will further harm ecosystem health. As well, the budget signals federal commitments to climate action could be compromised.
The Bottom Line: The budget makes building food and water security more difficult.
The Urgency
Our communities rely on a large number of physical and social services (aka infrastructure) to make them liveable. Think of the electricity system, roads, sewers, buses, bike lanes, community centres, libraries, seniors programs, and newcomer services. A 2024 report notes Canada has an infrastructure deficit anywhere between $150 billion to $1 trillion. Put simply, this is the amount of money we need to maintain existing infrastructure, to say nothing of building new climate resilient infrastructure.
Budget 2025
The budget acknowledges the important role infrastructure plays in the lives of Canadians. It announced $51 billion in funding over 10 years. However, only $23 billion is new money, the rest is previously committed.
The Bottom Line: Best case, this budget only sets aside a small fraction (less than 1/3) of what's needed to make our communities liveable. Worst case, it only sets aside 1/20 of what's needed.
Final Thoughts
The federal budget has clear priorities. What is unfortunate is that they do not include building the affordable homes people need, ensuring access to clean water and affordable food and adequately investing in our community infrastructure. If you agree with this analysis, let your MP know.
