Federal Budget Pledges $17.8 Billion to End Homelessness in Canada Within 10 Years

Prime Minister Mark Carney’s federal budget introduces an $11.2 billion funding commitment over four years and $17.8 billion over ten years aimed at ending homelessness across Canada in ten years, a flagship policy that is drawing both local support and calls for provincial healthcare agreements.

The federal spending plan attempts to reverse a trend that saw chronic homelessness rise significantly despite earlier targets. In 2017, Canada pledged to cut chronic homelessness in half by the 2027-28 fiscal year. Federal data shows that between 2020 and 2025, homelessness increased by 59 per cent, leaving an estimated 65,000 people experiencing homelessness nationwide according to a 2025 federal count, while a 2022 Statistics Canada study found nearly one in eight households had experienced some form of homelessness. Among Indigenous people, the rate of homelessness reaches more than one in four households.

Ottawa Covers Construction Costs as Manitoba Commits Funds for Housing Builds

Carney launched the budget tour in Winnipeg, stating that previous government efforts failed because they were inadequately resourced, poorly coordinated, and not sustained. The federal approach relies on covering construction costs for affordable housing while relying on provinces and local partners to handle operations and health supports.

In Manitoba, the province committed $84 million a year to support Ottawa’s housing builds, with at least $1 billion in new funding heading to Winnipeg for 2,000 new housing units and a Centre for Mental Health and Addictions. Manitoba Premier Wab Kinew called the federal money a “huge, humungous deal” during a press event alongside Carney at Wehwehneh Bahgahkinahgohn, the former Hudson Bay store being transformed into an Indigenous hub by the Southern Chiefs’ Organization. Kinew noted that provincial officials aim to complete the healthcare campus within three years. “It’s the first time in our country’s history where every level of government has come together to tackle homelessness, including First Nations and Métis governments,” said Kinew. “This is a fundamental step to succeed.”

Jennifer Moore Rattray, CEO of End Homelessness Winnipeg, said community organizations already know what works but lacked sufficient investment. “We have been doing it for years,” said Rattray. “Now we actually have the investment.”

Meanwhile, in Toronto, where local data indicates the number of people on the streets more than doubled between 2021 and 2024 to surpass 15,000, elected officials are pressing for similar provincial engagement. Toronto-Danforth Liberal MP Julie Dabrusin said that working together with cities, provinces, and philanthropic organizations is essential to get the job done. “We know it isn’t easy, but that isn’t what we’re committing to do is the easy things, we’re committing to do the right things,” she said. Toronto Mayor Olivia Chow urged Doug Ford to finalize agreements with the federal government to secure the necessary healthcare and wraparound services required for supportive housing projects.

The Road Ahead for Municipal Housing Initiatives

The federal strategy targets a decade-long timeline, while provincial initiatives such as Manitoba’s NDP government work toward ending chronic homelessness by 2031.

Under the federal approach, the government funds construction costs while provinces and other partners cover operations, with agreements with provincial governments set to start in Manitoba, where wraparound services such as healthcare fall under provincial jurisdiction.