The federal government is introducing the Canada Groceries and Essentials Benefit, a targeted program aimed at putting immediate cash relief in the pockets of more than 12 million Canadians facing record grocery prices, including around five million residents in Ontario.
The proposed benefit was highlighted Thursday in Mississauga, where Minister of Women and Gender Equality and Secretary of State for Small Business and Tourism Rechie Valdez, alongside Mississauga–Erin Mills MP Iqra Khalid, visited Iqbal Foods to outline how the measure is expected to deliver direct financial support to families struggling with the rising cost of food and everyday essentials.
“Families in Mississauga and across the GTA are feeling the pressure every time they walk into a grocery store,” said the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State for Small Business and Tourism. “The new Canada Groceries and Essentials Benefit puts meaningful support directly into the hands of Canadians who need it most, helping them cover the cost of food and everyday essentials while we continue the work of building the strongest economy in the G7.”
Under the proposal, eligible individuals and families would receive a one-time top-up payment equal to a 50 percent increase in the annual 2025-26 GST Credit. Ottawa estimates this step would deliver $3.1 billion in immediate support, with payments scheduled for as early as spring 2026, no later than June, pending Royal Assent.
The benefit would also increase by 25 percent for five years starting in July 2026, providing $8.6 billion in additional support through 2031. The expansion would reach approximately 500,000 new individuals and families. Combined, the measures could deliver up to $402 to a single individual, $527 to a couple, and $805 to a couple with two children. The government says this support offsets grocery cost increases beyond overall inflation since the pandemic.
“I hear every day from my constituents who are working hard and doing everything they can, yet still feeling the strain of rising grocery and household costs,” said Iqra Khalid, Member of Parliament for Mississauga–Erin Mills. “The Canada Groceries and Essentials Benefit sends a clear message that Canadians are not alone and that their government is responding.”
The rollout is linked to a broader push to strengthen food security and domestic supply chains. Ottawa is allocating $500 million from the Strategic Response Fund to help businesses absorb supply chain disruptions without passing costs to consumers. A $150 million Food Security Fund under the Regional Tariff Response Initiative will support small and medium enterprises and the organizations that assist them.
Additional measures include immediate expensing for greenhouse buildings to lower food production costs, $20 million for the Local Food Infrastructure Fund to support food banks, and the development of a National Food Security Strategy. This strategy will address domestic food production, access to affordable nutritious food, unit price labelling, and competition oversight in the market.
The Canada Groceries and Essentials Benefit would be paid quarterly starting in July 2026, supplementing existing programs such as the Canada Child Benefit, the Canada Disability Benefit, and the Guaranteed Income Supplement.
