April 28 2026

The federal spring economic update says it’s protecting public services that “give Canadians a fair chance to get ahead.” But a closer look at the fiscal plan raises some concerns.

Included in the update’s expense projections is $6.6 billion in scheduled federal spending reductions over the next four years, achieved by letting bilateral transfers for home and community care, mental health and addictions services, and long-term care expire.

Combined with limited new federal action on the health human resources crisis, modest support for the post-secondary funding crisis, and no movement on tax fairness, the update leaves significant pressures on public services unaddressed.

Lack of action on health care could add to the affordability crisis

As the spring economic update acknowledges, protecting essential social programs like child care, dental care and pharmacare “give Canadians a fair chance to get ahead.” For most families, the care provided by our public health care system saves them thousands of dollars a year. Any pressure on our public health care system risks adding to the affordability crisis.

But the federal government has yet to take meaningful action on the health human resources crisis. There’s no expansion of loan forgiveness for people training in allied health professions. No funding for retention. No national strategy.

Even though pharmacare was named as a program that helps Canadians get ahead, there’s no new funding to maintain and expand it. Funding for health transfers isn’t being increased to keep pace with inflation, population growth, and an aging population. And the bilateral health agreements that fund home care, mental health, and long-term care are scheduled to expire without replacement, as noted above.

When public services come under pressure, families often pay the difference — out of pocket, or by going without.

Colleges and universities continue to face a funding crisis, with limited federal response

Investments in skilled trades training are welcome. The skilled trades are vital to Canada’s economy, and we’re glad to see continued federal attention to apprenticeships.

But most apprentices for the skilled trades rely on public colleges for the in-class portion of their training. The training public colleges deliver is high quality, and is designed to give people skills they can build on throughout their careers. Without adequate support for the institutions that deliver this training, federal investments in the trades risk falling short of their goals.

With the funding crisis, programs are being cut and entire campuses are being closed. That will leave many people — including aspiring tradespeople — unable to get the in-class training they need.

The update offered limited new support for the broader post-secondary sector.

“Instead of funnelling public funds into private employer-based models that have shown their limits time and again, the federal government should help save the thousands of jobs being lost and programs being cut in public colleges and universities across the country,” said Bert Blundon, president of the National Union of Public and General Employees (NUPGE). “NUPGE has called for both short-term emergency funding targeted at programs, staffing and services, and long-term increases in funding for post-secondary education. It’s not too late — we remain open to working with the federal government on rebuilding capacity in Canada’s colleges and universities.”

Nothing on tax fairness

Even though large corporations and the wealthy still aren’t paying their share of taxes, the update included no new measures to make the tax system fairer. On the positive side, it also avoided tax breaks or loopholes that would disproportionately benefit the very wealthy.

Reductions in consumption taxes are pitched as relief for people with modest incomes. There’s no guarantee, however, that the savings won’t be absorbed by price increases.

Some small steps forward

There were some positive measures in the spring economic update. $794 million is being provided in 2026-27 to support the Non-Insured Health Benefits Program for First Nations and Inuit people, which will help narrow the gap in health care services. The application process for the Disability Tax Credit is being streamlined — a real improvement for people with disabilities and their families. The credit amount itself, however, hasn’t kept pace with the actual costs people face.

CPP premium reduction worth watching

One measure described as positive in the spring economic update could prove costly in the long term. The federal government has reduced premiums for the base CPP — as opposed to the enhanced CPP — from 9.9% to 9.5%.

This will produce relatively small savings. But if the assumptions behind the reduction prove overly optimistic, working people could face higher premiums down the road, or pressure on the CPP in the future.

“The spring economic update is built on a contradiction. It names public services as what makes life affordable for Canadians, then plans to spend less on them and counts on the difference to balance the books. The bill for that math will land on families, on the workers who deliver these services, and on the public systems Canadians depend on,” said Bert Blundon, president of the National Union of Public and General Employees.