- The Canada Social Transfer, or the CST, is the third largest federal block transfer to provinces and territories (after the Canada Health Transfer and Equalization) that is intended to support three broad areas of social programs: post-secondary education, social assistance and social services, and early childhood development and early learning and childcare.
- The CST is allocated on an equal per capita cash basis to provide comparable treatment for all Canadians, regardless of where they live.
- Since 2009–10, CST funding has been legislated to grow by three per cent annually.
- The CST is provided to provinces and territories on a largely unconditional basis with the exception of minimum residency requirements in the provision of social assistance. The provinces and territories are not required to report on how CST funds are disbursed.
- Pursuant to the Federal-Provincial Fiscal Arrangements Act, the federal government can withhold CST cash payments if a province or territory imposes waiting periods for social assistance on Canadian citizens, permanent residents, protected persons who have not yet obtained permanent resident status, and victims of human trafficking who hold temporary resident permits.
- To date, the federal government has not applied a penalty or withheld CST cash payments to a province or territory.
- Major Federal Transfers -
