The spending plan set out in Budget 2025 and reflected in Bill C-15 (45-1) incorporates the launch of Build Canada Homes (BCH). BCH is intended to create housing through direct construction, support for construction, and support for acquisitions.
At the same time, Budget 2025 also announces the Government’s intention to cut funding from the already declining spending profile of Canada Mortgage and Housing Corporation (CMHC). This would mean not only that existing programs like the Canada Housing Benefit and Affordable Housing Fund would be allowed to expire as scheduled, but also that further cuts would be made impacting CMHC’s capacity to sustain existing social housing.
Funding for other housing affordability programs is scheduled to expire with no renewal yet announced.
Highlights
- Federal planned spending on housing programs is set to decline 56 per cent, from $9.8 billion in 2025 26 to $4.3 billion in 2028-29 due to the expiry of funding for existing programs and cuts set out in Budget 2025.
- Within this spending plan, Budget 2025 prioritizes supporting the construction of new housing through a new federal agency called Build Canada Homes. Build Canada Homes plans to spend $7.3 billion over 2025-26 to 2029-30.
- Build Canada Homes should be expected to make a modest contribution toward housing supply and affordability within the broader context of a large decline in support for housing affordability.