Budget 2024: Supporting the Next Generation of Researchers and Innovators
News release
May 30, 2024 - Halifax, Nova Scotia - Department of Finance Canada
To unlock good-paying opportunities for every generation and secure Canada’s position at the forefront of the world’s advanced economies, we need to ensure our homegrown research talent can reach their full potential. To keep making scientific advances—from tech and AI to climate change and marine sciences—students and researchers today need cutting-edge facilities, grants to fund new projects, and more generous scholarships and fellowships to attract top-tier, homegrown talent.
Today at Dalhousie University, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, highlighted how the federal government’s science and research investments will enable new breakthroughs and ensure every generation shares in Canada’s economic growth.
In Budget 2024, the government is investing nearly $5 billion in Canadian brain power, including:
- Providing $2.6 billion to train top-tier, homegrown talent, with core research grants and enhanced scholarships and fellowships to make it more affordable for our brightest minds to put their ideas to work.
- Investing $1.3 billion to make post-secondary education more affordable, by providing more generous Canada Student Grants and interest-free Canada Student Loans, increasing housing allowances to provide more student aid to approximately 79,000 students each year, and making it more affordable for working-age adults to return to school. This builds on making Canada Student Loans interest-free, permanently.
- Investing $734 million to support Canada’s world-leading research infrastructure and institutes, and help the next generation of researchers discover new scientific breakthroughs.
At Dalhousie, federal research support is already creating good research opportunities for students and enabling scientific breakthroughs to better understand and protect our oceans. As part of the federal government’s more than $800 million Strategic Science Fund, the Marine Environmental Observation, Prediction and Response Network (MEOPAR)—based at Dalhousie—is receiving $38.1 million in new research support. This will enable MEOPAR to further its Canada-wide marine research projects, creating more opportunities for young talent to turn their ideas into real-world solutions.
The federal government’s investments in research and innovation are securing Canada’s world-leading research ecosystem and creating opportunities to train the next generation of Canadian talent. Budget 2024 furthers this momentum with strategic investments that create good-paying job opportunities for workers today—driving productivity and economic growth for generations to come.
Quotes
“Fairness for every generation requires building an economy that fosters homegrown research talent, and encourages our brightest minds to innovate. We’re boosting research funding, enhancing scholarships and fellowships, and encouraging entrepreneurs to scale-up, all to create good jobs and unlock the middle class for every generation.”
- The Honourable Chrystia Freeland,
Deputy Prime Minister and Minister of Finance
Quick facts
-
In Budget 2024, the government is delivering fairness for every generation with a housing plan that includes nearly 4 million new homes; transformative expansions to Canada’s social safety net to make life cost less and ensure Canadians get the care they need; and investments in innovation and productivity to create good jobs and economic growth. The government’s plan for tax fairness makes these investments in younger generations possible by increasing capital gains taxes on 0.13 per cent of Canadians to generate $19.4 billion in new revenue over five years.
-
Since 2016, the federal government has more than doubled Canada Student Grants from $2,000 to $4,200 per year.
- In Budget 2024, the federal government increased Canada Student Grants from $3,000 to $4,200, and interest-free Canada Student Loans from $210 week to $300 per week, for the 2024-25 school year, at an estimated cost of $1.1 billion in 2024-25.
- Increased grants will support 587,000 students and increased interest-free loans will support 652,000 students with a combined $7.3 billion in student aid this upcoming academic year.
-
Budget 2024 invests to make it easier for talent to access research opportunities, for new businesses to start-up, and for existing businesses to grow, with new proposed measures, including:
- A Lifetime Capital Gains Exemption Increase from the current amount of $1,016,836 in capital gains tax-free on the sale of small business shares and farming and fishing property up to $1.25 million, effective June 25, 2024. The Lifetime Capital Gains Exemption will continue to be indexed to inflation thereafter. In 2025, Canadians with eligible capital gains of below $2.25 million will be better off under these changes.
- A new Canadian Entrepreneurs’ Incentive to reduce the inclusion rate to 33.3 per cent on a lifetime maximum of $2 million in eligible capital gains. This additional $2 million incentive will be available to founding investors in certain sectors and where the company has been their principal employment for at least five years. When this incentive is fully rolled out, entrepreneurs will have a combined total and partial exemption of at least $3.25 million when selling all or part of a business—encouraging innovators to keep innovating in Canada. The new Canadian Entrepreneurs’ Incentive will mean entrepreneurs will be better off when earning capital gains of up to $6.25 million, such as from selling their business.
- Modernizing the Scientific Research & Experimental Development tax incentives and further capitalizing the program with $600 million over four years, and $150 million per year ongoing, to boost research and innovation.
-
Enhanced federal research support of $2.6 billion includes:
- $1.8 billion in core research grant funding for a 30 per cent increase over five years of Canada’s core research grant programs that support faculty-led research projects. It will indirectly support thousands of graduate student and post-doctoral fellows with their research, including their work on climate action, health emergencies, artificial intelligence, and psychological health.
- $825 million over five years to the granting councils to increase the annual value of master’s and doctoral students’ scholarships to $27,000 and $40,000, respectively, and post-doctoral fellowships to $70,000. To make it easier for students and fellows to access support, the enhanced suite of scholarships and fellowship programs will be streamlined into one talent program. This new program will also increase the number of graduate students and post-doctoral fellows benefitting from research scholarships and fellowships by approximately 1,720 each year.
- To provide better co-ordination across the federally funded research ecosystem, we will bring together our three research funding organizations within a single new capstone research funding organization. The granting councils will continue to exist within this new organization.
-
Budget 2024 also includes a $2.4 billion package of AI measures to accelerate job growth in Canada’s AI sector, boost productivity by helping researchers and businesses develop and adopt AI, and ensure this is done responsibly.
-
Budget 2024 investments in Canadian research build on existing federal support, including:
- The Strategic Science Fund, which announced the results of its first competition on May 26, 2024, providing up to $858.7 million in support to 24 third-party science and research organizations starting in 2024-25.
- Canada recently concluded negotiations to be an associate member of Horizon Europe, which would enable Canadians to access a broader range of research opportunities under the European program starting this year.
- The steady increase in federal funding for extramural and intramural science and technology by the government, which was 44 per cent higher in 2023 relative to 2015.
Associated links
Contacts
Media may contact:
Katherine Cuplinskas
Press Secretary and Senior Communications Advisor
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca
Stay Connected
- Follow us on Facebook
- Follow us on X – @FinanceCanada
- Follow us on LinkedIn
- Add our RSS feeds to your feed reader
Page details
- Date modified: