The federal government is handing Canada Post $673 million to keep the money-losing mail service afloat for the current fiscal year. A cabinet order gives the beleaguered Crown corporation the funds so it can "meet its operating and income" demands through next March.
The injection marks the latest in a series of emergency bailouts for the postal service. Last year Ottawa authorized a $1.03-billion cash injection for Canada Post, followed by another billion dollars in extra repayable funding when the initial amount proved too small.
The funding comes as Canada Post faces unprecedented financial pressure. The Crown corporation posted a $1.57-billion loss before tax in 2025. Carleton University business professor Ian Lee says the postal service will likely need hundreds of millions more to make it through the year, given the scale of those losses.
Canada Post has indicated it must modernize through reforms that include community mailboxes and possible post office closures to address its financial crisis. The corporation has also pointed to declining letter demand as a driver of its financial struggles.
The funding decision arrives as workers vote on a contract after years of disputes with management. Canada Post and the union have sparred over wages and structural changes to the Crown corporation for more than two years, with workers taking to the picket line repeatedly.
