The federal government has detailed plans to cut billions of dollars from a wide range of programs, impacting areas such as science, tourism, harbour improvements, journalism, foreign aid, and even the development of a Canadian-made lunar rover module.
The cuts are outlined in hundreds of pages of departmental plans tabled in the House of Commons last Friday, as Members of Parliament prepared for March break. Global News analyzed the departmental plans of over 80 federal government departments and agencies, alongside the government’s 2026-27 spending plan, which was presented to the House on March 3.
These documents reveal a shift in priorities under the Carney government, with a significant increase in national defence spending – a nearly 12 per cent jump, or $5.3 billion – coupled with reductions in funding for health, the environment, and regional economic development.
Finance Minister François-Philippe Champagne stated on November 4, 2025, that “We need to be ambitious in our investments and rigorous in our spending,” and that the budget “charts a new course for Canada’s public finances.” He added that Canadians expect results and that achieving them requires reducing operational spending to increase investment in Canada’s future.
Collectively, 85 departments are facing approximately $31 billion in reduced funding for the fiscal year beginning April 1, compared to previously approved spending levels. Conversely, around 40 departments are projected to see their budgets increase by roughly $23 billion in 2026-27.
Employment and Social Development Canada anticipates savings of $1.4 billion, largely due to the conclusion of temporary programs like the Early Learning and Child Care Program and Canada Summer Jobs. The Department of Fisheries and Oceans is planning to spend $371 million less on its small craft harbours program over the next two years.
Global Affairs Canada will reduce its workforce by seven per cent, or 887 people, over the next two years, and will allow programs like Canada’s International Climate Finance Commitment to “sunset,” resulting in savings of $812 million. The Canadian Space Agency’s budget is being cut by $400 million – more than one-third – and further work on a lunar rover discovery vehicle has been cancelled.
Other cuts include the conclude of the Agriculture Climate Solution Living Labs program, the Wine Sector Support Program, the Local Food Infrastructure program, and the Tourism Growth Program. Reductions are also planned for the Canada Cultural Space Fund, Canada Media Fund, Canada Periodical Fund, Local Journalism, and the CBC, with the CBC facing a seven per cent spending cut of $192 million next year. Library and Archives Canada will also reduce spending by nearly $50 million over the next three years.
Almost all agencies and departments facing budget cuts are planning to reduce employee numbers and improve efficiency.
Frequently Asked Questions
What areas are facing budget cuts?
According to the tabled plans, programs supporting science, tourism, harbour improvements, journalism, foreign aid, and the development of a Canadian-made lunar rover module are facing cuts.
How much is defence spending increasing?
Year-over-year defence spending will jump nearly 12 per cent, or $5.3 billion.
Which department is facing the largest budget reduction?
The Canada Revenue Agency is facing the largest reduction, with a cut of $4.3 billion, representing a 41 per cent decrease compared to current spending levels.
As the government implements these changes, it remains to be seen how these shifts in funding will ultimately impact the programs and services Canadians rely on.
