Statement by Public Services and Procurement Canada on a cash injection for Canada Post for the 2025–26 fiscal year

January 24, 2025 - Gatineau, Quebec                            

Today, the Government of Canada is announcing its intention to exercise provisions under the Canada Post Corporation Act that will allow Canada Post access of up to $1.034 billion in the 2025-26 fiscal year to maintain its solvency and ensure it can continue its operations as it faces ongoing financial challenges. Any cash provided will be on an as-needed basis to pay non-discretionary obligations. Canada Post is a critical service that connects Canadians from coast to coast to coast. It is often a lifeline for Canadians in rural, remote, and northern communities, and is vital to ensuring that these communities, that often have limited access to alternative mail and parcel delivery services, are not left behind. In addition, many small and medium-sized enterprises rely on Canada Post for parcel and letter delivery, which are important to maintaining and growing their businesses.

The cash injection, which is a temporary measure and which Canada Post will be required to repay, will provide a much-needed financial bridge to ensure Canada Post can continue to serve Canadians while working with the Government on the changes required to ensure the long-term viability of Canada’s postal system. The cash injection remains subject to further approvals.

Despite a recent stamp price increase, Canada Post will fall below its necessary operating cash requirements in 2025. Providing this cash injection will prevent insolvency and ensure the continuity of postal services. As well, Canada Post’s more than 68,000 workers depend on its continued stability to receive their pay and benefits.

This cash injection will ensure the continuity of Canada Post operations, however, it is clear that the corporation must be put on a path to viability. We look forward to working with Canada Post management on this as we go forward.