Major new investments in health care take centre stage in Budget 2025–26

Press Release

March 6, 2025

Minister of Finance Sandy Silver tabled the Government of Yukon’s 2025–26 Budget in the Yukon Legislative Assembly today.

This budget is built on the Government of Yukon’s commitment to support Yukoners and Yukon communities. Budget 2025–26 focuses on meeting the needs of a rapidly-growing territory, with significant investments in health care, education and housing, as well as making continued progress on building and maintaining the strategic infrastructure that will have a lasting benefit for Yukoners.

Affordability for all

The cost of living remains a concern for Yukoners and this budget includes measures aimed at making life more affordable. Budget 2025–26 makes a substantial capital investment of $57.6 million in new and ongoing housing projects, as well as $24.4 million to advance residential lot development. This budget also includes funds that assist Yukoners with daily life, such as $7.5 million for increases in social assistance, providing a rebate on Yukoners’ electricity bills, programs for child caregivers and parents of children with disabilities and contributing to Safe at Home Society’s operations at 408 Alexander. Additionally, $4.8 million will be invested in school food programs to improve students’ health and wellbeing and $3.1 million will support building, renewing and refurbishing early learning and child care spaces to make sure more Yukon families can access affordable child care.

Territory-wide growth

The Government of Yukon is also committed to advancing territory-wide growth. This budget devotes more than $50 million to maintaining and upgrading the Yukon’s bridges, including substantial investment in the Nisutlin Bay Bridge replacement. It also invests $75 million into runway and infrastructure upgrades at the Erik Nielsen Whitehorse International Airport and $31 million into repairing and upgrading the North Klondike Highway. The Government of Yukon is likewise developing community infrastructure with $64.7 million in funding for a variety of projects, such as a new recreation centre in Dawson and the $2 million Economic Development Fund for projects that provide communities with economic benefits.

Budget 2025–26 supports the Yukon’s growing student population to have skills and training they need by providing an additional $1.7 million for new educational support staff and wellness professionals in schools and $14.6 million more for educators to fulfil the terms of the new collective agreement signed with the Yukon Association of Education Professionals.

As part of investment in Yukon schools, $15.7 million will be invested in the construction of the Kêts’ádań Kų̀ community school in Burwash Landing, as well as $1 million to move forward planning on the new École Whitehorse Elementary School replacement, an additional $1.2 million for modular classrooms across the Yukon and another $1.2 million to create experiential learning spaces that will give Yukon students a diverse range of educational opportunities.

Yukon businesses and cultural industries will also benefit from Budget 2025–26 through funding opportunities and direct investment such as:

• $1.7 million for media production and visual media artists;
• $1.6 million towards the actions found in the Innovation Yukon Strategy so Yukon businesses can keep pace with a rapidly changing world; and
• $1 million to develop a support program for businesses affected by potential U.S. trade decisions, along with a $75 million contingency fund that will allow us to continue to respond to climate change and natural disasters, pressures on the health care system and economic uncertainty caused by the evolving U.S. trade policy.

Building prosperity through reconciliation

Prosperity for all Yukoners is only possible through strong relationships with First Nations governments built on mutual respect and trust. Budget 2025–26 reflects the Government of Yukon’s commitment to work in partnership with Yukon First Nations by committing $1.3 million to support ongoing negotiations and engagement with Yukon First Nations governments and $700,000 to help the Yukon Residential Schools Missing Children Project continue to do their important work. It also provides $5.4 million in funding for continued support of the Yukon First Nation School Board and $811,000 for agreements with Yukon First Nations to have wellness support for school-aged children. To build up energy independence, this budget also contributes $12.7 million to the Sādę Initiative solar power project in Watson Lake, which is led by the First Kaska Utilities Limited Partnership.

Safe and healthy families and communities

Budget 2025–26 puts a priority on maintaining and improving the health and wellness of Yukoners by investing in the health care system and community safety initiatives. It provides an additional $24.5 million in funding to the Yukon Hospital Corporation – for a total of $135.3 million – to meet demand for services and to expand bed capacity and $47 million more – for a total of $206.1 million – in funding for Insured Health Services. To keep Yukon communities safe, the Government of Yukon is directing $5.2 million towards wildfire prevention, mitigation and planning, as well as $579,000 to continue advancing the Downtown Whitehorse Safety Response Action Plan. Budget 2025–26 also includes an increase of $5.7 million in investments which will increase the number of RCMP officers and to hire more SCAN investigators.

Protecting our environment

The Government of Yukon will continue to work towards its goals while keeping to a high standard of environmental protection and growing a green economy. Budget 2025–26 includes significant funds for remediating mine sites, including:

• up to $118 million in advances to the court appointed receiver for Victoria Gold Corp., in addition to funding contributions to the First Nation of Nacho Nyak Dun for their response, as well as the costs for an independent review board to investigate underlying causes of the failure;
• $21.5 million to continue reclamation work at the Minto Mine; and
• $5.5 million for year one of a two-year water treatment plan at  at the Wolverine Mine.

Budget 2025–26 includes $59 million dedicated to carrying out actions in the Our Clean Future strategy. This includes $6.4 million for advancements under the Green Infrastructure Program which supports renewable energy projects and $5.8 million for retrofits in Government of Yukon buildings.

The budget also includes new investments in the Yukon’s campgrounds and funding for new technologies for data collection, to improve resident hunting opportunities and ensure sustainable harvesting.

2025–26 Fiscal and Economic Outlook

As part of the budget, Minister Silver also released the 2025–26 Fiscal and Economic Outlook and Five-Year Capital Plan. This year’s outlook shows strong employment growth and the lowest unemployment rate in Canada with increases in average earnings, improvements in inflation as the rate drops to two per cent and a continuing recovery in the Yukon’s tourism sector as visitation reaches levels comparable to before the beginning of the COVID-19 pandemic.

The Fiscal and Economic Outlook updates Yukoners on the state of the Yukon’s economy and the government’s financial situation. The broader economy remains stable and resilient supported by growth in several key economic indicators.

Five-year Capital Plan

The Five-Year Capital Plan lays out the Government of Yukon’s long-term priorities for capital projects. This year’s plan includes $1.9 billion in expected investment over the course of five years.

This budget showcases how our government is moving forward on its commitments to Yukoners on education, housing, health care and environmental stewardship. Through this budget, we are making concrete efforts to address the cost of living in the Yukon and building the necessary social and economic infrastructure to support Yukon’s growth. This budget strives to give Yukoners opportunities to thrive in a vibrant and sustainable economy.

Premier Ranj Pillai

This year’s Fiscal and Economic Outlook shows that the Yukon is in a strong position to face any challenges ahead, with our population rising, the lowest unemployment rate in the country, average earnings increasing, tourism numbers reaching near-record levels for a second year in a row and inflation coming back down to two per cent. Budget 2025–26 takes advantage of these favourable conditions as well as providing a path for the territory to continue to thrive.

Minister of Finance Sandy Silver

Quick facts

• The Yukon’s total budget for 2025–26 is $2.36 billion. Of this, $1.88 billion is for operations and maintenance expenses and $477.32 million is for capital projects.
• Budget 2025–26 forecasts an $82 million surplus and $695.7 million in net debt at the end of the fiscal year. It also forecasts $122.4 million more revenue than in 2024–25.
• Budget 2025–26 includes a $75 million contingency fund for expenditures not forecast in this budget, such as responding to wildfires, floods, health care pressures and possible effects resulting from uncertainty around U.S. trade policies. This reduces the impact of these events on the government’s surplus. The contingency fund is planned to be reduced back to $50 million in subsequent budgets.
• As part of Budget 2025–26, the government has included provisions to enable long-term borrowing up to $400 million. This authorization, included under the First Appropriation Act 2025–26, represents a prudent and forward-looking measure designed to ensure that the Yukon is equipped to address emerging pressures while continuing to invest in essential infrastructure and services that benefit the entire territory.
• The Government of Yukon also tabled the Second Supplementary Estimates for 2024–25, with $114.3 million in new operations and maintenance spending as well as $7.9 million in new recoveries. There is also an increase of $15.8 million for capital projects as well as new recoveries of $3.8 million.
• The Second Supplementary Estimates has a revised forecast surplus of $57.6 million for 2024–25.
• In addition to Budget 2025–26 and the supplementary estimates, the Government of Yukon tabled an Interim Supply Bill in the amount of $566 million. The bill will fund operations and maintenance and capital spending while the budget is debated in the Legislature.

Media contact

Laura Seeley
Cabinet Communications
867-332-7627
laura.seeley@yukon.ca

Eric Clement
Communications, Finance
867-393-6482
eric.clement@yukon.ca

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