The federal government is providing Canada Post with up to $673 million to keep the money-losing mail service operational through the current fiscal year. A cabinet order authorizes the funding so the Crown corporation can "meet its operating and income" demands through next March.
The injection comes as Canada Post faces mounting financial pressures. 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. Despite those efforts, Canada Post recorded an unprecedented $1.57-billion loss before tax in 2025.
Carleton University business professor Ian Lee has cautioned that the postal service will likely need hundreds of millions more to make it through the year, given the scale of recent losses.
The funding announcement arrives as Canada Post and its union navigate ongoing labour disputes. Workers are currently voting on a new contract after years of disagreements over wages and structural changes to the Crown corporation. Canada Post and the union have sparred for more than two years, with workers taking to the picket line repeatedly.
Canada Post has indicated it must modernize through reforms that include community mailboxes and possible post office closures. These proposed changes are part of broader efforts to address the corporation's financial crisis, which has been exacerbated by declining letter demand.
