The federal government is rolling out a new plan to address homelessness and encampments around the country, targeting communities that are struggling the most with providing adequate shelter to unhoused people.
In an announcement today, the feds said they’re ready to invest and negotiate agreements with any province or territory that will cost-match the government’s funding.
The money for this investment was already set aside in Budget 2024, as the federal government allocated $250 million to address the “urgent issue” of encampments.
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Because this funding is intended to be cost-matched by provinces and territories, it will be leveraged to $500 million to support the creation of more shelter spaces and transitional homes.
Minister of Housing Sean Fraser noted that “playgrounds, parks, and public squares have become the last refuge for far too many individuals” across Canada.
“This harsh reality divides our communities and impacts us all,” Fraser stated.
“We must work together to help the country’s most vulnerable find safe and affordable places to call home. We can and must do better.”
Additional measures to address homelessness
Other federal investments to address homelessness have been made through Reaching Home: Canada’s Homelessness Strategy, which targets urban, Indigenous, rural, and remote communities. The government has invested $5 billion over nine years into the program.
Reaching Home aims to reduce chronic homelessness nationally by 50% by fiscal year 2027 to 2028.
A recently published federal report on spending to address homelessness found that funding allocated to Reaching Home “supported placements in more stable housing” for over 17,800 people annually from 2019-20 and 2022-23.
However, despite Reaching Home’s efforts, homelessness in Canada has been on the rise.
The report also references data from Infrastructure Canada, which found that the number of homeless people across the country increased by 20% relative to 2018, reaching 34,270 in 2024. The department estimates the number of chronically homeless people increased by 38% relative to 2018.
The report added that achieving a 50% reduction in chronic homelessness would “require an additional $3.5 billion per year, approximately a seven-fold increase in funding over the National Housing Strategy average.”