Prime Minister Mark Carney announced significant new financial measures today aimed at lowering the cost of living for Canadians. The centrepiece of the announcement is the new Canada Groceries and Essentials Benefit, which replaces and expands the former GST Credit.

For residents in Saint John dealing with high food prices, this change puts direct cash back into household budgets. You can read the full official announcement from the Prime Minister’s Office here.

More Money in Your Pocket

The federal government is rebranding the GST Credit and increasing the payout. Starting in July 2026, the base amount of the benefit increases by 25% for the next five years. To address immediate financial pressure, the government also approved a one-time payment equivalent to a 50% increase for this year.

Here is what the numbers look like for typical households:

• Family of four: You will receive up to $1,890 this year. For the next four years, that amount settles at approximately $1,400 annually.
• Single individuals: You will receive up to $950 this year, followed by about $700 annually for the next four years.

“We’re building Canada strong, because we’re strongest when we look after each other and when we ensure everyone has the chance to get ahead,” Prime Minister Carney stated regarding the new measures.

Stabilizing Food Prices and Supply Chains

Beyond direct payments to families, the government is deploying funds to stop price hikes at the source. A new $500 million allocation from the Strategic Response Fund aims to help businesses manage supply chain disruptions without passing those costs on to you at the checkout line.

Additionally, the government introduced immediate expensing for greenhouse buildings. Producers can now fully write off greenhouses acquired between November 4, 2025, and 2030. This move encourages local food production and extends the growing season—a vital factor for food security here in New Brunswick.

Support for Food Banks

Recognizing that many families need help immediately, the government is providing $20 million to the Local Food Infrastructure Fund. This funding supports food banks and local organizations in delivering nutritious food to families in need.

“By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system,” said The Hon. Heath MacDonald, Minister of Agriculture and Agri-Food.

Context: The 2026 Economic Landscape

Today’s announcement follows several major policy shifts enacted over the last year aimed at affordability. These include the cancellation of the federal consumer carbon tax as of April 1, 2025, which reduced gas prices by up to 18 cents per litre in many provinces, and a cut to the middle-class income tax rate that took effect last July.

Frequently Asked Questions

When will I receive the new Canada Groceries and Essentials Benefit?

The 25% increase begins in July 2026. The one-time payment (the 50% increase) is scheduled for this year, though specific deposit dates will depend on the Canada Revenue Agency’s rollout schedule.

Do I need to apply for this benefit?

Generally, benefits like the former GST Credit are calculated based on your tax return. You must file your taxes to ensure you receive the payments you are eligible for.

How does this help local farmers in New Brunswick?

The immediate expensing for greenhouse buildings allows local producers to invest in infrastructure that extends the growing season and increases domestic supply, which helps stabilize prices over the medium term.

Is the Carbon Tax still in effect?

No. The federal consumer carbon tax was cancelled effective April 1, 2025. This measure was previously enacted to lower fuel costs and headline inflation.