Federal Housing Budget Cut by 56% Despite Ongoing Crisis, Analysis Finds
New analysis shows the federal government has reduced its housing budget by 56% even as affordability pressures worsen nationwide. The Parliamentary Budget Officer reports that core funding for housing programs has been significantly scaled back, including major reductions to CMHC’s resources. Analysts warn that these cuts will limit the federal government’s ability to support new construction, preserve existing affordable units and deliver key supply-focused programs.
The report notes that the reductions come at a time when Canada faces record population growth, severe supply shortages and escalating rental demand. While the government points to future capital initiatives, critics argue the near-term contraction in operating and program dollars will slow delivery of housing at all levels. The analysis concludes that federal commitments are increasingly misaligned with the scale of the national housing crisis.
[Read Article]