Federal Spring Economic Update 2026: What It Means for Community Housing

Press Release

April 29, 2026

On,  Finance Minister François-Philippe Champagne tabled the Spring Economic Update 2026. Tabled under the newly elected Liberal majority government led by Prime Minister Mark Carney, the update was framed as a plan to build a “stronger, more independent, more resilient economy”.

The update projects a federal deficit of $66.9 billion for 2025–26, $11.5 billion lower compared to the projection in Budget 2025. Unlike previous Fall Economic Statements, this update does not include a lot of new spending and clearly indicates that the government does not view these as opportunities announcing large new spending programs.

Housing is given a prominent position in the update’s framing, many of the measures announced do not account for new investments in community housing and are rather re-announcements or re-commitments.

Urban, Rural, and Northern Indigenous Housing
One of the reallocations of existing funding in this Spring Economic Update was announced on Friday, April 24. The government announced that the $4-billion federal Budget 2023 commitment for urban, rural and northern Indigenous community housing is moving forward after years of delay. The money will be reallocated in the following ways:
• $300 million will be available through Indigenous Services Canada for Indigenous-led funding delivery
• $1.7 billion has been allocated to Build Canada Homes to support Indigenous housing providers serving urban, rural and northern areas.
• ~$2 billion will go towards distinctions-based agreements with First Nations, Inuit and Métis partners.

For over a decade, the CHRA Indigenous Caucus has demanded For-Indigenous, By-Indigenous solutions. The CHRA Indigenous Caucus stands ready to collaborate with federal partners to ensure that this funding reflects the For-Indigenous, By-Indigenous principle as it works to operationalize this long-overdue commitment.

Acceleration of the Apartment Construction Loan Program
The Spring Economic Update commits to accelerating over $7 billion in low-cost loans under the Apartment Construction Loan Program (ACLP) through CMHC. This is not new money but is instead the government making the money that is committed in future years available earlier.

National Building Code Modernization for Factory-Built Housing
The update proposes $41.9 million over five years to that will be aimed at improving the regulations governing homebuilding, particularly to support factory-built housing. This includes:
• Update the National Model Codes to reduce regulatory friction and improve affordability
• Create clearer and more predictable approval pathways for factory-built and modular housing
• Eliminate redundant factory and site inspections for off-site construction
• Establish a performance-based approval pathway for modular and panelised systems
• Improve consistency in how National Building Code requirements are interpreted across jurisdictions

Disability Tax Credit Streamlining
The update proposes to streamline the Disability Tax Credit (DTC) certification process for individuals with certain long-lasting medical conditions. The government has committed $42.5 million over five years to the Canada Revenue Agency to administer these changes.

Modernization of the Charitable Sector Framework
The government has also announced its intention to modernize the framework governing the charitable sector in 2026–27. As a first step, the government will consult with key stakeholders and relevant agencies to align Canada’s approach.

Many CHRA members operate as registered charities or work closely with charitable organizations. CHRA will monitor the consultation process closely and encourages members to participate and make their voices heard when the consultation is launched.

Looking Ahead: The National Housing Strategy and Build Canada Homes
Canada’s commitments on affordable housing, referenced in today’s Spring Economic Update, must be situated within the context of a refreshed National Housing Strategy (NHS).

Canada’s first NHS expires in less than two years. Many NHS funding envelopes and initiatives are ending without a clear replacement. Federal-Provincial and Federal-Territorial bilateral agreements under the NHS provide essential funding for things such as the preservation and renewal of existing community housing stock, and providing housing allowances for tens of thousands of households.

Similarly, Build Canada Homes (BCH) was a welcome new initiative in Budget 2025, however, it was only initially capitalized with $13 billion over five years. At the current rate of deployment, BCH will likely exhaust that capital in less than half that timeframe, raising doubts about the longer-term predictability of its funding and financing.

As we look ahead to Budget 2026, CHRA will be clearly advocating to the federal government for the need to for a long-term and predictable plan to scale non-market community housing. That must include a fiscal framework for the National Housing Strategy and a recapitalization of Build Canada Homes to provide our sector with the predictability we need.

For more information, contact:
Kenneth Milner
Director, Policy & Government Relations
kenneth@chra-achru.ca

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