Chapter 5: 
A safe and sovereign Canada

The world is more dangerous and more divided. The international rules-based order has been replaced by one that is far less secure, all while rapid technological change is expanding the fields of conflict. For generations, Canada's geography, strong institutions, and close partnerships with its allies helped keep many threats at a distance. No longer. Cyberattacks, disinformation, and financial crime can cross borders instantly. Natural disasters are becoming more frequent and severe. Threats that once seemed distant can now reach Canadians, communities, and critical services directly.

Canadians know we must adapt to these new realities. That is why Canada's new government is making major investments in expanding and modernising the Canadian Armed Forces (CAF), having already reached NATO's 2% of GDP spending target. We are on track to reach 4% of GDP within this decade. We are building a stronger, more secure, and more sovereign defence industry so that we become more self-reliant.

At the same time, we are strengthening Canada's online safety and privacy protections, fighting financial crimes such as fraud, and advancing the safe and responsible use of artificial intelligence (AI), alongside investing in our emergency preparedness and response capabilities so Canadians aren't caught off guard when disaster strikes. In response to the demands of this moment, Canadians have bravely answered the call.

Recruitment for our armed forces has risen to its highest level in three decades. Canadian pilots flew thousands of hours, while firefighters advanced on the ground, to respond to one of the worst Canadian wildfire seasons in recent years. Our strategy is working, but the work for a safer and more sovereign Canada is far from finished.

Canada cannot wait for threats to emerge before taking action. Budget 2026 takes the next step—investing in the capabilities and partnerships needed to protect Canadians, defend our sovereignty, and ensure that Canada is ready to meet new threats at home and abroad.

Taking action in Budget 2026

Budget 2026 delivers new measures to defend Canada's sovereignty, protect Canadians, and prepare for the future. These include:

• Strengthening Canada's defence capabilities and supporting the military's readiness at home and abroad.
• Building a stronger defence industry and more secure defence supply chains.
• Making online spaces safer for Canadians and protecting our children.
• Strengthening disaster preparedness and recovery in First Nations communities.

These measures build on the significant actions we have already taken to strengthen Canada's security and keep Canadians safe, including:

• Undertaking the biggest increase in defence spending since the Second World War, meeting the 2% of GDP spending target years ahead of schedule and remaining on track to reach 4% within this decade toward the NATO Defence Investment Pledge.
• Moving forward with major military capabilities, including new submarines, GlobalEye surveillance aircraft, and Canadian-made armoured vehicles.
• Helping Canadian businesses create jobs, expand exports, and compete in global defence markets.
• Strengthening border security, disrupting the fentanyl trade, and hiring 2,000 additional RCMP personnel and border officers.
• Giving law enforcement and the justice system stronger tools to prevent harm and address serious crimes.
• Strengthening privacy protections and giving Canadians greater control over their personal information.

5.1 Defending Canada

As conflict continues in Europe and the Middle East, Canadians know the world is more dangerous and divided. That is why we have moved quickly to ensure Canada can defend its sovereignty, protect its interests, and support its allies.

For too long, Canada did not invest enough in its defence capabilities. When we were elected last year, we made a firm commitment to rebuild, rearm, and reinvest in the CAF. That is because the first job of the Canadian government is to keep Canadians safe. In a changing world, the brave men and women of the CAF require modern equipment to defend our sovereignty and that of our allies.

That is why we are undertaking the biggest increase in defence spending since the Second World War. Canada achieved the NATO benchmark of spending 2% of gross domestic product (GDP) on defence in 2025-26—the first time since the end of the Cold War and half a decade ahead of the previous government's schedule. Canada and its NATO Allies have built on this by announcing a new Defence Investment Pledge to spend 5% of GDP on defence by 2035—and we are well on track with a funded plan to reach 4% of GDP within this decade. These investments will ensure that the men and women in our CAF have modern equipment at hand. They enable us to maintain reliable defence infrastructure and support a sustained presence to protect our North and Arctic. And they are building a strong defence industrial base capable of supporting Canada's long-term needs.

With Budget 2026, we are building on this momentum with further investments to strengthen Canada's defence capabilities, build up our defence industrial capacity, and continue our progress toward rapidly meeting our NATO defence spending commitments.

Investing in Canada's defence capabilities

To expand and modernise Canada's military, long-term investments in advanced equipment, infrastructure, and operational readiness are vital. We have responded to this need by making generational investments to bolster Canada's security and protect our sovereignty. Budget 2025 committed $81.8 billion on a cash basis to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF). We built on this in the Spring Economic Update 2026, where we announced additional support of $2.4 billion on a cash basis to create the new Defence Investment Agency as a stand-alone entity and to continue our military support to defend Ukraine against Russia's unprovoked invasion.

Since then, we have continued advancing major defence procurements and partnerships to strengthen the capabilities of our CAF, support our allies, and contribute to jobs and economic growth at home.

In June, the government:

• Entered formal agreements with Australia and BAE Systems Australia to procure the Over-the-Horizon Radar capability for Arctic surveillance. The project is estimated to contribute close to $290 million annually to Canada's GDP and support approximately 2,270 jobs annually in Canada between 2026 and 2033.
• Announced an investment of nearly $2 billion for 190 additional Armoured Combat Support Vehicles alongside a strategic partnership with General Dynamics Land Systems–Canada (GDLS-Canada). This will expand Canada's fleet by over 50% from 360 to 550 vehicles, giving the CAF the equipment they need to protect Canadians and strongly support our allies. In keeping with our commitment to expanding our sovereign defence industry, every vehicle will be designed by Canadian engineers, built with Canadian materials, and assembled by Canadian workers at the GDLS-Canada factory in London, Ontario.

In July, the government:

• Announced the preferred supplier for the Canadian Patrol Submarine Project—the largest defence procurement in Canada's history. The Project will prioritise investments across the Canadian supply chain to create high-paying jobs and strengthen Canada's defence industries.
• Launched the Uncrewed Systems Defence Innovation Secure Hub to bring together organisations to collectively accelerate the transition of promising Canadian uncrewed and autonomous technologies from research and development into field-ready solutions that support Canada's defence and security priorities.
• Launched the Defence Drone Initiative to accelerate the development, testing, acquisition, and deployment of uncrewed and counter-uncrewed capabilities to ensure the reliable, rapid, and continuous supply of this sovereign capability for the CAF and the Canadian Coast Guard. The Initiative provides access to nearly 400 trusted Canadian suppliers and supports cooperation with allies and key partners like Ukraine. We are moving at scale and speed; the first contract under this initiative was awarded in just 50 days.

In August, the government:

• Launched the Quantum Defence Innovation Secure Hub under the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) in Calgary, Alberta. The Hub will bring together organisations from Canada's quantum, defence, and innovation sectors to accelerate Canadian quantum technologies from research into capabilities that support Canada's defence and security priorities.
• Announced an agreement with Chantier Davie Canada Inc. to build six new program icebreakers for the Canadian Coast Guard. This will create nearly 5,000 jobs during the construction phase alone and contribute nearly $650 million annually to Canada's GDP while strengthening our security and capability in the Arctic.

In the fall, the government:

• Introduced the Strengthening Canada's Defence Sector Act (Bill C-40) to establish the Defence Investment Agency as a Crown corporation. This will provide the Agency with a clear mandate, a permanent structure, and dedicated ministerial leadership so that it can better focus on defence procurement, production, and investment activities in support of the CAF.
• Signed a non-binding term sheet with Saab to negotiate the potential acquisition of the GlobalEye Airborne Early Warning and Control solution for the Royal Canadian Air Force (RCAF). On delivery, these six aircraft will modernise the RCAF's surveillance capabilities, provide critical support to detect and deter threats in the Arctic and beyond, and strengthen Canada's contributions to NORAD modernisation and continental defence while supporting an estimated 3,000 Canadian jobs.

Advancing the Defence Drone Initiative

Since we launched the Defence Drone Initiative in July, it is already transforming the way defence capabilities are delivered. In just under two months, the Initiative has begun laying the foundation for a stronger sovereign national defence drone ecosystem by establishing a marketplace—an innovative new tool to create a faster pathway for promising Canadian technologies to move from concept to operational testing and, where they meet defence requirements, into production. As the nature of war rapidly evolves, driven by the proliferation of drones, autonomous systems, and weapons in orbit, Canada's drone capability is more crucial than ever before.

• Budget 2026 proposes to provide $2.3 billion over five years, starting in 2027-28, on a cash basis to the Department of National Defence for the Defence Drone Initiative to accelerate the discovery, acquisition, and deployment of uncrewed and counter-uncrewed capabilities. A portion of funding for this initiative would be sourced from funding already provisioned in the fiscal framework.

Expanding Operation REASSURANCE

In addition to investing in new capabilities, Canada is increasing its support for Operation REASSURANCE, Canada's largest overseas deployment mission to deter Russian aggression on NATO's Eastern Flank and fortify our shared European defence. We have extended Operation REASSURANCE until 2031 and plan to increase Canada's persistently deployed personnel to up to 2,600. As part of the extension, Canada will join Latvia and Denmark as the third Framework Nation of Multinational Division North, boldly taking on more responsibility to protect NATO's Eastern Flank in Europe. Budget 2026 proposes to provide:

• $7.6 billion over five years, starting in 2026-27, on a cash basis to the Department of National Defence and Global Affairs Canada for the extension and expansion of Operation REASSURANCE. This would be sourced from existing Department of National Defence resources.

Supporting Canadian Armed Forces members and their families after the Wainwright tragedy

Members of the CAF dedicate their lives to serving Canada, defending our country, and standing ready when Canadians need them most. That service demands commitment and sacrifice not only from those who wear the uniform, but also from the families who support them.

The recent tragic incident at the Canadian Forces Base Wainwright in Alberta, in which members of the CAF were killed and others seriously wounded during a training exercise, is a harsh reminder of the risks CAF members assume in the course of their service, including while training to maintain operational readiness. These members of our armed forces served Canada. Now Canada must serve them.

Canada has a responsibility to support members of the CAF and the families who stand alongside them. We stand by the women and men of our CAF and their families as they bear the weight of this loss. In recognition of their shared service and sacrifice, Budget 2026 proposes to provide:

• $25 million over two years, starting in 2026-27, to the Department of National Defence for the Canadian Forces Morale and Welfare Services to support the members of the CAF, their families, and local communities affected by the tragic incident at Canadian Forces Base Wainwright.
• $3 million in 2026-27 to the Department of National Defence to support the Wainwright Military Family Resource Centre.

This incremental funding would complement existing services and programs providing support to CAF members and their families.

Strengthening Canada's defence industrial base

Launched in February 2026, the government's Security, Sovereignty and Prosperity: Canada's Defence Industrial Strategy sets out an ambitious agenda to protect Canada's sovereignty and strengthen our strategic autonomy while building greater economic prosperity here at home. The Strategy increases defence investments, while at the same time streamlining our supply chains. Through the government's Buy Canadian Policy, we are ensuring that Canadian firms are the key partners in meeting Canada's new defence and security needs. This gives Canadian defence companies the demand to scale up and invest with confidence. This also means that the Defence Industrial Strategy is another tool we are using to strengthen our economy while creating high-value jobs, building new infrastructure, and expanding Canadian defence offerings for global markets.

Key progress to date includes:

• Supporting Canadian businesses and SMEs: Launched the Regional Defence Investment Initiative to help small- and medium-sized businesses enter or grow within defence supply chains.
• Developing Canadian technologies: Selected three innovators to advance Canadian-based "light lift" rockets.
• Supporting SMEs and dual-use technologies: Launched Defence Industry Assist, already supporting 860 SMEs, while advancing dual-use projects through the Life Sciences Fund and Strategic Response Fund.
• Expanding Canadian defence production: Selected General Dynamics – Ordnance and Tactical Systems and IMT Precision to support new artillery manufacturing capacity in Québec and Ontario.

Building on the Defence Industrial Strategy, Budget 2026 proposes to:

• Direct up to $2.7 billion over five years, starting in 2026-27, on a cash basis, from previously announced funding, including toward the following priority measures:
  • Advance Phase 2 of the Canadian Quantum Champions Program to support leading Canadian quantum companies in scaling up the development of industrial-scale quantum computers capable of solving real-world problems across industries, including in cryptography, advanced materials, signal processing, and pattern recognition. This will help ensure that Canada retains its quantum firms.
  • Expand the Launch the North initiative to establish a sovereign, medium-lift Canadian space launch capability through the development of domestic launch vehicles, a national rocket propulsion ecosystem, and dedicated Government of Canada launch and testing infrastructure managed by the Department of National Defence. This will be delivered through competitive, milestone-based support to Canadian industry to mature propulsion systems, vehicle architectures, and launch technologies.
  • Further develop Canadian space technology by helping firms scale up development and capacity for launch in space missions. The Canadian Space Agency's Space Technology Development Program provides direct support to Canadian industry with a return on investment of over 3 to 1.
  • Strengthen cross-cutting funding tools and enablers of the defence industry. This includes extending initiatives such as BOREALIS, Defence Industry Assist, export promotion, and the Regional Defence Investment Initiative; and ensuring Canada has specialised secure facilities for industry to work with the Department of National Defence on sovereign capabilities.
  • Recapitalise the Canadian Defence Industry Resilience Program to enable direct strategic investments in sovereign capabilities that are critical to maintaining the CAF's combat advantage, and build the industrial capacity we need.
  • Secure critical inputs for Canadian defence production. This includes funding to complete the construction of a General Dynamics Ordnance and Tactical Systems production facility in Québec for nitrocellulose, a critical input in munitions, and to support Canadian industry to produce high-grade ballistic steel, a critical enabler in specialised manufacturing of armoured vehicles, reducing dependency on foreign suppliers.
  • Fully operationalise the National Research Council's drone innovation hubs and enable the Department of National Defence to create competitions for industry to advance technologies for uncrewed vehicles and air systems.

We created the Defence Investment Agency to play a central role in supporting Canada's Defence Industrial Strategy. For far too long, Canada's defence procurement system has been too complicated, slow, and reliant on international suppliers. It limited the growth of our defence industry, left our workers and businesses with fewer opportunities, and above all, left the women and men of our military without the equipment they need most. 

Canada's new Defence Investment Agency supports all five pillars of the Strategy, including a new strategic procurement process through the "Build-Partner-Buy" framework and investments that support defence innovation. Since its launch, the Agency has been advancing major procurement initiatives, including the Arctic Over-the-Horizon Radar and Canadian Patrol Submarine projects, and co-leading the Defence Drone Initiative.

In October, we introduced legislation to establish the Defence Investment Agency as a Crown corporation. This will give it a clear mandate, a permanent and centralised structure, and dedicated ministerial leadership. In doing so, the Agency can better focus on its core mission of defence procurement—faster, less fragmented, and with greater continuity and predictability across acquisitions.

As Canada and its allies make significant investments to strengthen security, access to long-term, low-cost capital for defence and dual-use companies, especially small- and medium-sized enterprises, is vital. The Business Development Bank of Canada's $6 billion Defence Platform is implementing a key action of the government's Defence Industrial Strategy by helping Canadian companies scale, innovate, and compete globally through financing, investment, and advisory support. The Platform also aims to strengthen investor confidence in the sector and work to crowd-in additional private investment.

Our approach is working. In September 2026, the Canadian Imperial Bank of Commerce (CIBC) committed $2 billion to support the growth of small- and medium-sized defence-related and dual-use businesses. This will help firms expand production, create high-quality jobs, and contribute to a stronger and more competitive Canadian economy. In addition, Scotiabank launched a Canadian Defence Issuance Framework to help mobilise private capital in support of strengthening Canada's defence and security ecosystem.

Canada also intends to join the European Union's €90 billion Ukraine Support Loan, which can open new opportunities for Canadian defence companies. Participation would allow Canadian companies to compete for approximately €60 billion in Ukrainian defence procurement, supporting Canada's defence industry, while contributing to Ukraine's security and resilience. To support Canada's defence industry while continuing to stand with Ukraine:

• Budget 2026 proposes to provide up to $61.9 million over four years, starting in 2027-28, and $109.2 million in future years to Global Affairs Canada to support Canada's anticipated participation in the EU's Ukraine Support Loan procurement opportunities.

Complementing Canada's Defence Industrial Strategy with the Productivity Mega Deduction

Complementing the Defence Industrial Strategy, the Productivity Mega Deduction would help firms across Canada's defence supply chain invest in new machinery, equipment, and technologies by allowing eligible investments to be written off immediately, improving competitiveness and supporting domestic production capacity.

Establishing the Defence, Security and Resilience Bank

In an increasingly uncertain and divided world, Canada is working to bring together like-minded partners to mobilise and deploy private capital in support of collective security by unlocking long-term financing, expanding defence industrial production, and building more resilient supply chains. That work is bringing Canada together with Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Türkiye, and Ukraine to establish the Defence, Security and Resilience Bank (DSRB), with membership open to other allies and close partners who share the Bank's objective.

The DSRB will be the world's first multilateral financial institution specifically dedicated to defence, security, and resilience. The DSRB will mobilise public and private capital to help governments and defence industries meet growing security requirements, including through sovereign financing, industrial expansion, and procurement. It will rely on robust governance and strong financial backing from participating countries to achieve a AAA credit rating, which it will use to expand access to long-term financing, reduce financing costs, and help mobilise commercial investment.

Canada and international partners will gather in Luxembourg on November 30, 2026, to sign the Articles of Agreement establishing the DSRB. With its headquarters in Canada and a European hub in Luxembourg, the DSRB will reflect the collaborative, international partnership at the heart of this initiative. This signing will build on the negotiation of the Articles of Agreement in Montréal in spring 2026 and the declaration Canada issued with its partners in July, expressing our shared intention to establish the Bank. This is a major milestone toward full operationalisation of the DSRB in 2027.

Headquartered in Canada, the DSRB will place us at the centre of a new institution supporting allied security. Hosting the DSRB will build on Canada's financial expertise and create opportunities to attract international talent, investment, and specialised financial services. For Canadian businesses, including small- and medium-sized enterprises, the DSRB will help address financing gaps and support their participation in allied defence supply chains—advancing our collective security while creating skilled jobs and economic opportunities at home and abroad.

Investing in northern and Arctic readiness

Canada's North and Arctic region is going through a period of major change. Assumptions that shaped decades of Canadian defence and security are being upended. Climate change is warming our Arctic region nearly three times faster than the global average—and it is a shift that great powers are looking to exploit. In response, we are making major infrastructure investments in Canada's North that protect our Arctic sovereignty and enhance our ability to protect, sustain, and support operations there. When completed, the Mackenzie Valley Highway (Section 2.1) will become a vital artery for the region, providing essential year-round access to Indigenous and remote communities in the Mackenzie Valley. The Grays Bay Road and Port will run from the Nunavut-Northwest Territories border to a port and airfield on the Arctic Ocean. It will include a deepwater export terminal for minerals and an airstrip, which have potential for both civilian and military benefits.

These projects support both our civilian and military presence in the North, which is integral to maintaining Canada's sovereignty in the region. They allow us to concurrently solidify our defence presence while developing the immense, nation-building potential of the critical minerals and trade corridors in Canada's North. At the same time, they will provide greater safety, opportunities, and a lower cost of living for Northerners and Indigenous Peoples.

Protecting Canada through sovereign intelligence

Canadians should be able to trust that their country can identify and confront threats to their security, sovereignty, and way of life. In a more volatile and dangerous world, the threat environment is becoming more complex, from foreign interference and espionage to terrorism and other challenges that cross borders. Protecting Canada and advancing our interests requires sovereign, strong intelligence capabilities.

The Canadian Security Intelligence Service (CSIS) is central to that effort. It works to identify and counter threats to Canada's national security, while providing the information and analysis needed to support sound decisions and act in Canada's interests. To strengthen Canada's ability to protect its national security and act independently in a changing threat environment:

• Budget 2026 proposes to provide $6.0 billion over 10 years, starting in 2027-28, on a cash basis, and $579.5 million ongoing to CSIS to expand its presence and capabilities. This funding would help CSIS engage with Canadians in their communities; better protect Canadians from terrorism, foreign interference, espionage, and other evolving threats; and reduce reliance on foreign partners. It would also help CSIS deepen and diversify security relationships around the world.

Fulfilling our NATO commitments

In June 2025, Canada and its NATO Allies agreed to a new Defence Investment Pledge to spend 5% of national GDP by 2035 on core defence requirements (3.5%) and defence- and security-related investments (1.5%). In March 2026, the Prime Minister announced that Canada's defence spending reached 2% of GDP, with more than $65 billion spent in 2025-26, the single largest annual investment in generations.

NATO GDP benchmark

To benchmark defence spending across the Alliance, NATO uses a standardised approach to estimate GDP based on data from the Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF).

NATO GDP estimates may differ from Statistics Canada and the Department of Finance Canada figures due to differences in methodology, data sources, and timing of updates and revisions.

NATO also recognises more general expenses and investments that contribute to our collective defence and security needs. We have developed an approach to count these investments and inform NATO about the eligible expenses that strengthen our critical infrastructure, public safety, innovation and national resilience, and civil preparedness.

Canada is making significant progress toward NATO's Defence Investment Pledge: we are on track to spend 4% of GDP on defence this decade and reach 5% of GDP by 2035. Over five years, starting in 2026-27, generational investments in defence will total more than $700 billion on a cash basis.

This historic level of investment in defence and the government's commitment to greater transparency demonstrate Canada is once again taking responsibility for defending its sovereignty, supporting its allies, and contributing to collective security through NATO. By investing to meet the NATO Defence Investment Pledge, Canada is helping ensure its armed forces remain ready to respond to emerging threats at home and abroad. We will continue to invest in the CAF in an ambitious but fiscally responsible way to protect Canadians and build on our strength in a rapidly changing world.

In depth – Core defence expenditures

Table 5.1
Core defence spending
($ millions)

	2026-27	2027-28	2028-29	2029-30	2030-31	5-year total
Accrual basis	54,632.2	59,011.4	61,128.0	63,269.0	65,071.9	303,112.4
Cash basis	75,102.6	88,970.1	92,211.9	95,822.6	99,229.2	451,336.4
GDP forecast (NATO)	3,360,712.0	3,482,874.0	3,615,748.4	3,751,795.1	3,889,698.1
GDP percentage reached (cash basis)	2.2%	2.6%	2.6%	2.6%	2.6%
Note: Canada's defence spending-to-GDP projections are subject to change as GDP forecasts are updated in response to evolving economic conditions and as implementation plans are refined over time. On an accrual basis, this forecast includes total program expenses associated with core defence, excluding net actuarial losses (gains). These projections do not account for future commitments made by the Government of Canada which will have an impact on core defence spending.

Cash vs accrual

• Cash accounting: Records expenses when cash payments are made. This method aligns with NATO's defence reporting standards. It gives a clear view as to the timing and payments of defence acquisitions.
• Accrual accounting: Records expenses when the economic value of an asset occurs as opposed to recording them when cash payments are made. The expense of an asset is spread over its useful life, allowing for long-term planning and more accurate reflection of asset value. This method is used for federal budgeting.

While the accounting treatment of acquiring capabilities can diverge significantly based on an asset's useful life, there is generally little difference between cash and accrual accounting for operating expenditures (e.g., salaries for the CAF, operating capabilities). Canada reports expenditures to NATO on a cash basis.

Example: Military vessel owned by the government

Military vessel lifecycle	Cash accounting	Accrual accounting
Designing and planning to acquire or build the vessel	Costs are recorded as payments are made to undertake these activities.	Costs are spread across the useful life of the vessel starting when it comes into service.
Purchasing or building the vessel
Operating the vessel (e.g., crew and maintenance personnel, fuel)	Costs are recorded as payments are made to undertake these activities.
Maintaining and repairing equipment over its useful life	Costs are recorded as payments are made to undertake activities.	If activity extends the vessel's life, costs are spread over the remaining useful life of the vessel.
Retiring and disposing of the vessel	Costs are recorded as payments are made to undertake these activities.	Expected end-of-life costs, such as dismantling or environmental cleanup, may be recorded before the payments are made.

5.2 Keeping Canadians safe at home

Canadians deserve to feel safe in their communities, at home, and online.

Preventing violence before it occurs, protecting children online, supporting people who have experienced harm, helping individuals get back on track after entering the justice system, and ensuring emerging technologies like AI are developed and used safely and responsibly all contribute to safer communities. We are ensuring Canadians are confident that crime is being addressed preemptively, compassionately, and effectively.

Budget 2026 proposes to provide additional support to prevent violence, support victims and survivors, strengthen online safety, and advance the safe and responsible use of AI, building on Canada's National Artificial Intelligence Strategy: AI for All.

Making online spaces safe for everyone

The pace of technological change is rapid, and the risks Canadians face online are evolving with it. Yet, the policies and approaches that once kept Canadians safe online are no longer enough. The data is clear: online harms and exploitation are intensifying. Children and youth are particularly vulnerable, facing harms such as child sexual exploitation, cyberbullying, and self-harm that can have long-term impacts on their mental health and well-being. In 2024, Canadian police services reported 16,905 incidents of online sexual offence against children, three times higher than in 2018 and four times higher than in 2014. Canadian parents are rightly concerned about their children's safety online, while they themselves are at risk of increasingly sophisticated online crimes, which often target their finances or identities.

Canadians should not have to face these challenges alone. That is why we are taking action to protect Canadians from digital and financial threats and help build safer communities. In June 2026, we introduced Bill C-34, the Safe Social Media Act, to strengthen online safety by introducing new requirements for social media services and AI chatbot services and enhancing protections for children and young people. While laws exist to respond to harms once they have occurred, Bill C-34 shifts the focus toward preventing harms in the first place and holding platforms accountable for the safety of their users.

The Act includes two duties focused specifically on protecting children:

• The Duty to Protect Children will apply to all regulated services under the Act and require them to incorporate design features aimed at protecting children from harm.
• The Duty to Make Certain Content Inaccessible will require the rapid removal of content that sexually victimises a child or revictimises a survivor, or intimate content communicated without consent, including deepfake sexual images.

The Act also includes a broader Duty to Act Responsibly which would apply to both social media services and AI chatbot services. It would require services to assess and mitigate risks related to seven categories of harmful content, label synthetically generated content, and give users clear and accessible tools to flag harmful content and block other users. AI chatbot services would have specific requirements under this duty aimed at reducing the risks of harmful content and behaviour, as well as increasing transparency around reporting thresholds in crisis situations.

To help implement the Act, Budget 2026 proposes to:

• Establish the new Digital Safety and Data Protection Commission of Canada to enforce the Act, ensure compliance, and work toward creating a safer online space for Canadians. Budget 2026 proposes to provide $176.3 million over five years, starting in 2026-27, and $29.3 million ongoing to Canadian Heritage for this work.

Delivering the benefits of AI for all Canadians

AI is transforming daily life, changing how businesses operate while reshaping global economic competitiveness, productivity, and innovation. To ensure the benefits of AI are shared by all, it must be developed and used in ways that are safe, strengthen Canada's sovereignty, and protect our democracy. As one of just four countries at the forefront of the AI revolution, Canada has a generational opportunity: one that we cannot afford to miss.

In June 2026, we launched Canada's National AI Strategy: AI for All. Supported by an initial investment of $2.7 billion on a cash basis, the strategy strengthens digital privacy protections, protects Canadians from the safety risks of AI, expands access to computing power for Canadian researchers and businesses, and helps homegrown AI companies access the capital they need to grow. We are committed to a future where AI is adopted responsibly, in a way that truly serves all Canadians—building trust, expanding opportunities, and reinforcing our sovereignty.

With investments, programs, and new measures already well underway, AI for All cements Canada's position as a global leader in this field.

Since September 2026:

• Canada launched the National AI Literacy Initiative, a new partnership with the Alberta Machine Intelligence Institute (Amii) that will provide free AI training to help Canadians understand AI's potential, use it responsibly, and benefit from its use.
• Canada announced $162 million over five years for Mitacs to support 10,000 co-funded work placements for post-secondary students, recent graduates, and post-doctoral fellows to help Canadian businesses make better use of AI and give more students and researchers hands-on experience. This marks the first of up to 90,000 AI-related opportunities planned by 2031 under the AI for All Strategy.
• Canada and Germany announced a joint investment of $150 million and €100 million in Montréal-based LawZero, founded by Canadian AI pioneer Yoshua Bengio, to help develop a trustworthy, transparent, and safe approach to advanced AI. Canada and Germany have also begun work through the Sovereign Technology Alliance to strengthen sovereign AI capabilities.
• Canada supported the creation of a new Canadian-led open-source consortium between Mila and Mozilla, an initiative aiming to make advanced AI tools easier and more affordable for small- and medium-sized businesses to use while giving users greater control over their data.
• Canada established the Prime Minister's National Council on Artificial Intelligence to advise on Canada's AI strategy, support the growth of Canada's AI sector, and promote the safe use of AI.
• Canada committed to an equity investment of up to $1.6 billion in Cohere, a Canadian success story poised to become a leader in sovereign AI. This equity stake will ensure Canadians can choose secure, sovereign, Canadian-made AI for decades to come and will create at least 1,000 high-paying technical jobs in Canada by 2030.

Canada is also working internationally to help Canadian AI companies reach new markets, support research partnerships, and promote the safe development and use of AI. Recent agreements with Spain in May 2026 and with South Korea and Saudi Arabia in July 2026 build on earlier partnerships, including an agreement signed with the European Union in December 2025.

We are also working to provide all students at Canadian universities, colleges, and CEGEPs with access to trusted AI agents. This puts capable, personal AI tools in the hands of the next generation of Canadian workers, researchers, and innovators, and will be part of broader efforts to ensure Canadians have access to the foundational tools to build an AI-skilled nation. Further details will be announced prior to the end of 2026.

Budget 2026 builds on this progress. It proposes to:

• Support Canada's continued participation in the Global Partnership on Artificial Intelligence via the International Centre of Expertise in Montréal on Artificial Intelligence. The Global Partnership on Artificial Intelligence is an international forum for countries to share information and develop practical tools related to responsible development of AI. Budget 2026 proposes to provide $6.2 million over four years, starting in 2027-28, to Innovation, Science and Economic Development Canada to support this work.

The rapid adoption of AI is driving unprecedented demand for compute power and chips, the foundational infrastructure needed to process data, train models, and power AI applications across areas such as health, agriculture, and natural resources. Canada has the clean power, land, and world-class talent to be a global leader in AI infrastructure. While new capacity is being built, much of it is being secured by large technology companies that can afford long-term contracts and rising computing costs. Often, this means that Canadian companies still cannot secure access to the computing capacity they need here at home.

To address these challenges, Budget 2025 committed to working with industry to advance a small number of large-scale, sovereign AI data centre projects in Canada. We are delivering on that commitment and have advanced collaborative agreements with leading proponents to move these projects forward. These investments will support both public and private sector needs. In addition to strengthening government capabilities and making government services more accessible, they will improve access to AI computing power for innovative Canadian companies, particularly those operating in high-growth and AI-intensive sectors.

Building on these initiatives:

• Budget 2026 announces that Canada's new government will enable Canadian AI companies to access 500 MW of sovereign AI compute through new financial tools, such as backstops and offtake agreements, to mobilise private capital and expand compute capacity.

Canada's new government is also committed to working closely with international partners to explore the creation of a new body, such as a Technology Stability Board, to develop shared standards, assess whether advanced AI models are safe and remain under human control, and convene governments when new capabilities pose significant or emerging risks.

Supporting the Canadian Centre for Child Protection

For over 20 years, the Canadian Centre for Child Protection (C3P) has been on the frontlines responding to the steep and accelerating rise in online harms against children and supporting victims and survivors of child sexual abuse and exploitation.

In 2025 alone, Cybertip.ca, Canada's tipline to report the online sexual exploitation of children, operated by C3P, received over 28,000 reports related to child sexual abuse and violence material. C3P also assisted around 2,500 children affected by online sexual violence. To build on the work of Bill C-34 and ensure victims, survivors, and families continue to have access to this critical support, Budget 2026 proposes to provide:

• $8.4 million over three years, starting in 2027-28, to Public Safety Canada to support the Canadian Centre for Child Protection's ongoing work in child protection.

Engaging communities and preventing violence

Preventing radicalisation requires early intervention, targeted support for at-risk individuals, and strong partnerships with communities. The Canada Centre for Community Engagement and Prevention of Violence leads the federal government's efforts to counter radicalisation to violence by supporting research, community-based prevention programs, and interventions that help keep people from moving toward violence and extremism. To support this ongoing work, Budget 2026 proposes to provide:

• $64 million over four years, starting in 2027-28, and $9 million ongoing to Public Safety Canada to support the activities of the Canada Centre for Community Engagement and Prevention of Violence, including $56 million over four years, starting in 2027-28, and $7 million ongoing to expand the Community Resilience Fund.

Supporting victims of crime and reducing repeat offending

Being masters of our destiny means Canadians living, working, and enjoying themselves in safer communities. Yet when a crime does occur, it is key that we offer strong support for victims, while undertaking efforts to prevent future harm. Ensuring victims can access support, helping children and youth recover from crime, and reducing repeat offending all play important roles in building safer communities and a safer Canada. We are committed to supporting this work, which is why Budget 2026 proposes to provide:

• $6 million over three years, starting in 2027-28, to Justice Canada to strengthen the Office of the Federal Ombudsperson for Victims of Crime and support its work reviewing complaints, identifying systemic issues, and advancing victims' rights.
• $30.9 million over three years, starting in 2027-28, to Justice Canada to ensure the continued availability of Intensive Rehabilitative Custody and Supervision services, which provide treatment and rehabilitation for eligible young violent offenders and help reduce repeat offending.
• $12 million over three years, starting in 2027-28, to Justice Canada to expand support for Child Advocacy Centres, which provide coordinated, trauma-informed services for victimised children, youth, and their families.

Addressing gender-based violence

No one in Canada should have to live with the threat of gender-based violence. Yet too often, gender-based violence continues to have devastating impacts on individuals, families, and communities across Canada. Meaningful progress depends upon sustained action, strong partnerships, and ongoing investment. We are committed to supporting women, girls, and 2SLGBTQI+ people through initiatives that advance equality, strengthen community organisations, and help create safer and more inclusive communities across Canada.

Since launching the 10-year National Action Plan to End Gender-Based Violence in 2022, bilateral agreements with provinces and territories have helped expand prevention initiatives and improve supports for survivors. That is why, in July, we announced $607.4 million over four years, starting in 2027-28, to renew the bilateral agreements with provinces and territories to support continued action to end gender-based violence across the country.

5.3 Protecting Canadians from digital and financial threats

Every day, Canadians make payments, do their banking, communicate, and live their lives on their digital devices. This has increased efficiency and unlocked productivity, and new advances in technology are benefiting Canadians in many ways. Yet at the same speed as technology evolves, so do the methods that criminals and other bad actors use to exploit Canadians and misuse the systems we rely on. Your data is valuable, and we are working to protect it.

That is why we are taking strong, forward-looking action in Budget 2026 to prevent economic abuse and fraud, combat financial crime, and protect the integrity of Canada's financial system.

Modernising privacy legislation

In June 2026, we introduced Bill C-36, an Act to enact the Protecting Privacy and Consumer Data Act, which included major reforms to modernise Canada's consumer privacy framework.

The legislation recognises privacy as a fundamental right for all Canadians and gives Canadians greater control over their personal information. It sets strong protections for children and youth, requires organisations to be clearer to Canadians on how they collect and use personal data, and holds companies accountable through tougher penalties for non-compliance.

Collectively, the government's reforms would give Canadians greater assurance that their personal information is being handled responsibly, strengthen enforcement and oversight, and help strengthen Canada's data and digital sovereignty.

Protecting against economic abuse

Budget 2025 announced the Code of Conduct for the Prevention of Economic Abuse. Since then, the government has moved quickly to turn that commitment into action, engaging survivors, community organisations, experts, and the banking sector to shape a practical and ambitious code, and is now negotiating its terms with banks.

Economic abuse—such as restricting access to money, sabotaging employment, or forcing debt—is a common form of gender-based violence. It can also affect seniors, who can often be vulnerable to financial manipulation or coercion by those they know and trust. This robs people of their independence and limits Canadians' ability to build secure and fulfilling lives.

To support the creation and implementation of the Code of Conduct, the Department of Finance has worked with Women and Gender Equality Canada, Employment and Social Development Canada, and the Financial Consumer Agency of Canada, as well as many stakeholders, including the Canadian Centre for Women's Empowerment.

The proposed code would establish clear expectations for banks to prevent economic abuse, recognise warning signs, respond appropriately when concerns arise, and better support Canadians experiencing abuse. It would back those expectations with stronger employee training, internal safeguards, escalation processes, public reporting, and oversight by the Financial Consumer Agency of Canada.

Delivering Canada's National Anti-Fraud Strategy

Canadians are increasingly targeted by sophisticated, technology-enabled fraud. It may look like a text from a relative asking for money, or a bank's "new website" asking for credit card information. Almost instantly, Canadians can be defrauded without knowing what they did wrong until it's far too late. Fraudsters are increasingly exploiting digital platforms, telecommunications services, and the financial system. These scams undermine Canadians' confidence in our economy and profoundly threaten their financial security. The Canadian Anti-Fraud Centre reported losses totalling more than $704 million in 2025 alone—an amount estimated to represent only 5% to 10% of actual losses.

The private sector is already taking action to address this challenge. For example, Canada's largest financial institutions and telecom companies jointly launched a Cross-Sector Anti-Fraud Exchange platform in October 2026, which will allow them to work together to identify and prevent repeat fraud as new techniques are developed.

To tackle this rising threat to the financial well-being of Canadians, strong government leadership is also needed. We are developing Canada's first National Anti-Fraud Strategy, which brings together financial institutions, digital platforms, and telecommunication companies in a cross-sectoral approach to protect Canadians from fraud schemes as they evolve. Concurrently with Budget 2026, the Department of Finance Canada is publishing a policy statement outlining next steps for the Strategy.

To combat fraud and protect Canadians' bank accounts, Budget 2026 announces the government's intention to:

• Introduce a legislated Multi-Sector Anti-Fraud Framework, as a cornerstone of the National Anti-Fraud Strategy, to enhance fraud-related protections for Canadians across the financial and telecommunications sectors and on digital platforms. To protect Canadians, organisations will be required to prevent, detect, disrupt, and respond to fraud, and to work with each other, across sectors, to resolve fraud-related complaints.

The Framework will be complemented by other legislative amendments to ensure the implementation of sector-specific anti-fraud requirements that protect users of financial, telecommunications, and digital platform services, including:

• Amending the Bank Act to cap maximum consumer liability at $0 for any form of transaction resulting from unauthorised access to a consumer's bank account, in the absence of gross negligence on their part.
• Amending the Telecommunications Act, including giving the Canadian Radio-television and Telecommunications Commission (CRTC) the authority to introduce fraud prevention obligations for telecommunications service providers and to collect and publish information respecting the prevalence of fraudulent telecommunications.
• Amending Canada's Anti-Spam Legislation (CASL), including providing authority for the CRTC to proactively disclose information to law enforcement.

We will consult on draft legislation and amendments before introduction. More information about the Strategy will be presented in 2027.

Detect, disrupt, deter financial crimes

Financial crimes have broad repercussions on the lives of Canadians and their communities. Money laundering supports and perpetuates economically motivated crimes such as drug trafficking, extortion, and fraud, which threaten the safety of our communities and the integrity of Canada's robust, world-renowned financial system.

We take financial crime seriously and have taken significant steps in recent years to combat increasingly sophisticated schemes, while advancing new criminal justice reforms to help investigate and prosecute these crimes. We recently introduced measures:

• In Bill C-29 to stand up the Financial Crimes Agency as Canada's new lead enforcement agency on this issue.
• In Bill C-12 to strengthen anti-money laundering and anti-terrorist financing (AML/ATF) supervision, compliance, and enforcement.
• In Bill S-8 to address some of the most common types of cash-based money laundering, ban unlawful crypto ATMs, and protect money services businesses—which provide financial services such as remittances, foreign currency exchange, money transfers, virtual currency exchange—from illicit activity.

A recent international review of Canada's AML/ATF framework by the Financial Action Task Force (FATF) recognised Canada's progress on this issue. Canada's strong legal framework, operational improvements, and aggressive pursuit of bad actors have helped upgrade Canada to the FATF's best outcome category and placed us among countries whose AML/ATF systems are assessed to be broadly effective and aligned with international standards.

To strengthen Canada's ability to detect, disrupt, and prevent financial crime as threats evolve, Budget 2026 announces the government's intention to:

Strengthen oversight and close gaps that criminals can exploit

• Improve information sharing between FINTRAC and OSFI, ensuring the appropriate safeguards for consumer information, and expand FINTRAC's ability to obtain supervisory information from regulated entities.
• Expand anti-money laundering requirements to cover higher-risk gambling activities, including certain pari-mutuel betting on horse racing, while exempting lower-risk activities.
• Extend the AML/ATF registration regime, including to dealers in precious metals and stones, after engaging with industry.

Make it harder to hide behind corporations

• Help more government authorities with regulatory and enforcement responsibilities better detect and address the illicit use of shell companies and other complex corporate ownership structures by giving them access to non-public beneficial ownership registry information.
• Strengthen the government's ability to dissolve corporations being used for fraudulent purposes.

Tackle complex financial crimes

• Bring forward legislation to strengthen investigative tools targeting organised criminals, modernise Criminal Code offences to address evolving forms of financial crime and strengthen penalties, and ensure that crime doesn't pay by facilitating the recovery of proceeds of crime. Together, these reforms would improve Canada's ability to detect, disrupt, investigate, and prosecute sophisticated financial crime.

Follow-the-money strategy against extortion

Too many Canadians are victims of extortion. Every day, people and businesses fall prey to organised criminal networks. These crimes are typically carried out by organised networks operating across borders and using digital platforms. That's why coordinated, timely action between governments, law enforcement, and financial institutions is essential to combat it.

In 2026, FINTRAC stepped up its work with law enforcement and financial institutions to detect and disrupt these crimes. The results so far include:

• 250+ financial intelligence disclosures related to extortion, more than in the previous two years combined.
• 800+ subjects identified.
• 160,000+ financial transactions captured in those disclosures.
• 900+ individual law enforcement officers reached through cross-country engagement.

Through its Countering Extortion Partnership, FINTRAC is also sharing emerging extortion trends and indicators with banks, credit unions, government, law enforcement, and other partners, helping businesses spot suspicious transactions and helping police advance their investigations. FINTRAC officers have been undertaking engagement activities with law enforcement in select cities across Canada to fight financial crime, including in Surrey, British Columbia; Brampton, Ontario; and Montréal, Québec.

Addressing national security risks from investments by financial institutions

The government is encouraging investments by financial institutions as they contribute to building Canada Strong: they promote competition, innovation, and productivity in Canada, and provide the capital we need to get major projects built. At the same time, it is important to have the tools necessary to protect the integrity of the financial sector as capital flows in. Risks related to the investor or a Canadian business can arise after an investment has been reviewed, which means we must ensure the government maintains the ability to respond to national security threats over time. Banks are subject to distinct rules regarding the investments they make in Canada. As such, Budget 2026 proposes to:

• Amend the Bank Act to provide the Minister of Finance with the authority to order the divestiture of investments held in Canadian businesses by banks if national security concerns emerge.

Cracking down on tax evasion and financial crime

Criminals should not be able to use Canada's financial and tax systems to hide illicit income or launder the proceeds of crime. We are committed to ensuring the fairness of the tax system and addressing tax crimes to ensure that all Canadians pay their fair share. To make it harder for criminals to evade taxes:

• Budget 2026 proposes to provide $182.4 million over four years, starting in 2027-28, to the Canada Revenue Agency to strengthen its capabilities to investigate tax evasion and work with law enforcement partners to combat money laundering and disrupt the flow of illicit income. 

It is estimated that this measure will recover upwards of $60.3 million in revenue over three years starting in 2028-29.  

Consulting on Canada's Common Reporting Standard rules

Canadians expect everyone to pay their fair share, including those who hold financial assets in other countries. Exchanging tax information between national tax authorities helps promote compliance and combat offshore tax evasion. Canada is one of more than 120 jurisdictions participating in the OECD's Common Reporting Standard, the global standard for automatically exchanging financial account information for tax purposes. A peer review identified areas where Canada's implementation of these rules does not align with the global standard.

• Budget 2026 announces the government's intention to consult on potential measures to address these gaps and strengthen Canada's implementation of the Common Reporting Standard. 

5.4 Strengthening disaster preparedness

Wildfires, earthquakes, and other natural disasters disrupt lives, damage homes and infrastructure, and leave communities recovering long after the immediate danger has passed. With the world increasingly facing the effects of climate change, Canadians need governments, emergency responders, and community organisations that are prepared to act quickly and support recovery when disasters inevitably strike. When life-altering events happen, Canadians always come together. We are stepping in to better support them.

Budget 2026 strengthens Canada's ability to prepare for, respond to, and recover from disasters. It does this through investments that strengthen emergency management, support affected communities, and help protect the essential systems Canadians rely on in times of crisis.

Preparing for and responding to wildfires

Recent wildfire seasons have been among the most severe in Canadian history. This year, Canada had more than 5,400 wildfires that collectively burned approximately 4.5 million hectares of land; in total, they forced more than 33,750 people from their homes, including more than 8,800 people from Indigenous communities. Wildfires are devastating: they force people from their homes, destroy possessions, and put lives, businesses, and critical infrastructure at grave risk. Meeting the challenge posed by increasingly severe and less predictable wildfires requires greater preparedness and collaboration across all levels of government.

In Canada, no one is left behind. Canadians take care of one another, especially in moments of crisis. To help Canada better respond to the serious threat of wildfires, Budget 2026 proposes to provide:

• Up to $2.5 billion in financing to De Havilland Canada delivered by Export Development Canada to help the company increase its production capacity of waterbombers at its facilities in Alberta. This investment will shorten delivery times for customers and help them fight domestic and global wildfires that are increasingly frequent and severe.

Strengthening emergency preparedness in First Nations communities

First Nations communities are often among the hardest hit by emergencies like wildfires. Extended evacuations can separate people from their homes, communities, and support networks for long periods of time, disrupting daily life and making recovery more difficult.

That is why Budget 2026 contains measures to help communities respond, recover, and prepare by strengthening emergency management support, expanding wildfire protection, and investing in First Nations-led fire safety priorities. In October 2026, we announced:

• $865.6 million in 2026-27 for the Emergency Management Assistance Program to respond to emergencies that occurred on reserve and an additional $446.2 million ongoing to support future response and recovery from emergencies.
• $7.8 million in ongoing funding to support First Nations with wildfire protection where First Nations community boundaries are next to wildland.
• $7 million in ongoing funding for the First Nations Fire Protection Strategy, which supports fire safety priorities identified by First Nations communities.

Protecting against catastrophic earthquake risks

Many Canadians face significant earthquake risk, particularly in southwestern British Columbia and the region between Ottawa and Québec City. While Canada's property and casualty insurance sector is among the best prepared in the world for earthquake losses, the most extreme earthquakes can place extraordinary pressure on the insurance system, affecting its ability to respond and continue providing essential insurance services to Canadians.

To strengthen Canada's ability to respond to these rare events and allow insurers to focus on helping Canadian households and businesses recover when support is most needed, Budget 2026 announces the government's intention to:

• Introduce legislation establishing the Canadian Earthquake Insurance Facility. Financed through nominal levies on insurers, the Facility would provide emergency funding of up to $50 billion to the property and casualty insurance sector following an extreme earthquake, supporting victims by increasing insurers' ability to pay claims and promoting financial stability. We would work with industry to implement the Facility quickly for federally regulated insurers, while working with provinces and territories to extend access to provincially regulated insurers. The legislation would be reviewed five years after implementation to assess its impact on the earthquake insurance market.

Enhancing the Memorial Grant Program for First Responders

First responders are there when Canadians need them most, protecting lives, supporting communities, and helping people through moments of crisis. To recognise their service and sacrifice, the government intends to increase the maximum payment under the Memorial Grant Program for First Responders, which supports families of first responders that die as a result of their duties. Further details will be announced in the Spring Economic Update 2027.

Spotlight on gender and diversity impacts

Budget 2026 will help make communities more resilient by:

• Funding the Digital Safety and Data Protection Commission of Canada to help ensure regulated online services are accountable for making online spaces safer, particularly for children, by requiring them to address harmful content and enhance privacy protections. A 2022 Statistics Canada survey found that 74% of youth reported seeing several types of harmful content online at least once in the past year, including content that may incite hate or violence, compared to 51% in the overall population.
• Expanding funding for the Canada Centre for Community Engagement and Prevention of Violence to support initiatives to prevent radicalisation to violence in Canada. This will particularly benefit populations affected by or vulnerable to evolving pathways to violence, including young people, who may be at risk of online radicalisation and exposure to violent extremist content. In 2024-25, 362 clients received services from organisations supported by the Canada Centre's Community Resilience Fund, the majority of whom were under the age of 25.
• Funding to support victims of crime and reduce repeat offending to strengthen services for victims and survivors, including more coordinated, trauma-informed supports for children and youth who have experienced victimisation. For young offenders with mental illnesses, rehabilitative supervision will help address factors contributing to criminal behaviour and reduce the risk of repeat offending.
• Renewing bilateral agreements with provinces and territories to end gender-based violence, help strengthen prevention efforts, and improve access to support for victims and their families. Benefits would be particularly significant for groups disproportionately affected by gender-based violence, including women and girls, Indigenous women and girls, 2SLGBTQI+ people, racialised women, newcomers, and persons with disabilities. For example, 61% of Indigenous women and 55% of women with disabilities report experiencing intimate partner violence at least once in their lifetime.
• Funding the Emergency Management Assistance Program to support First Nations communities in strengthening local emergency management capacity, advancing community-led preparedness and mitigation initiatives, and ensuring reliable access to support before, during, and after emergencies. With First Nations communities often among those most affected by the increasing frequency and severity of emergencies, this measure will help reduce the impacts of future emergencies, support faster recovery, and strengthen long-term community resilience.

Further information on the expected gender and diversity impacts of Budget 2026 measures across a range of population groups is provided in Annex 4.