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Toronto, Ontario

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today announced that the federal government will deliver an historic $99.4 billion in major federal transfers to provinces and territories in 2024-25, in addition to other significant financial support provided by the federal government. This represents an increase of $4.8 billion in major transfers from 2023-24.

To ensure provincial and territorial governments can deliver the high-quality, universal public health care that Canadians expect and deserve, next year’s Canada Health Transfer, allocated equally per capita, has increased by $2.7 billion, for a total of $52.1 billion. Major federal transfers to provinces and territories also include the Canada Social Transfer, Equalization, and Territorial Formula Financing.

In addition to the major transfers, the federal government also provides other significant annual support to provinces and territories, including to improve access to home and community care, and mental health and addiction services ($11 billion over 10 years), for a Canada-wide system of affordable early learning and child care ($27 billion over five years), and to build stronger communities through the Canada Community-Building Fund ($2.4 billion in 2024-25).

Quotes

“A foundation of our economic plan is a strong social safety net and effective public health care. This year’s record of nearly $100 billion in transfers to provinces and territories will help ensure Canadians receive the support they need—and our government will continue to do our part to build a stronger and healthier country for Canadians from coast to coast to coast.”

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“The supports we are announcing today form the backbone of the social safety net millions of Canadians have counted on for generations. Since 2015, we have worked with our provincial and territorial partners to build on that foundation and introduce new, ground-breaking supports, like a Canada-wide system of early learning and child care—which is saving Canadian families thousands of dollars a year. Our government will continue to build a fairer, more prosperous Canada.”

The Honourable Dominic LeBlanc, Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs

“Our government is investing in health care so Canadians can get the care they need and deserve. We are providing nearly $200 billion to provinces and territories for health care over the next 10 years, which includes $25 billion for tailored bilateral agreements to support the unique needs of every province and territory. Through a guaranteed 5 per cent Canada Health Transfer increase for the next five years—which is an additional $17.5 billion in federal funding specifically for health care—we’re supporting provinces and territories so they can deliver health care to Canadians. Together, we’re going to build a better health care system for Canadians.”

The Honourable Mark Holland, Minister of Health

Quick Facts

  • In 2024-25, the Canada Health Transfer will increase by 5.4 per cent to $52.1 billion, which is more than the 5 per cent increase guaranteed by the federal government in the February 2023 10-year health care package.
  • Major federal transfers include the Canada Health Transfer, the Canada Social Transfer, Equalization, and Territorial Formula Financing.
    • The Canada Health Transfer provides long-term predictable funding for health care and supports the principles of the Canada Health Act. The transfer, made on an equal per capita cash basis, grows in line with a three-year moving average of nominal gross domestic product, with a minimum increase of three per cent per year.
    • The Canada Social Transfer is a transfer in support of post-secondary education, social assistance and social services, early childhood development, and early learning and child care. It is legislated to increase by three per cent annually.
    • The purpose of Equalization is to ensure that provincial governments have sufficient revenues to provide comparable levels of public services at reasonably comparable levels of taxation.
      • Total Equalization funding grows in line with a three-year moving average of nominal gross domestic product and is allocated amongst provinces based on a formula set out in legislation.
      • In 2024-25, Equalization will support Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Quebec.
    • The Territorial Formula Financing helps the three territorial governments fund essential public services, recognizing the higher cost of delivering Canada’s social safety net in the North.
  • The Canada Community-Building Fund is a permanent source of funding provided up front, twice-a-year, to provinces and territories, who in turn flow this funding to their municipalities to support local infrastructure priorities. Municipalities can pool, bank, and borrow against this funding, providing significant financial flexibility.

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