Canadian government provides $1B in repayable funding to Canada Post

The federal government will make up to $1.034 billion in repayable funding available to Canada Post through the 2025-26 fiscal year to help the Crown corporation address financial challenges.

The short-term financing measure, which falls under the Canada Post Corporation Act, aims to maintain the postal service’s solvency while the government and Canada Post work on a long-term strategy.

“This approach will maintain continuity of Canada Post’s operations but will not solve the corporation’s structural issues,” the government said in a statement.

Canada Post said in a release that it has recorded significant annual losses since 2018 due to shifts in the postal and parcel delivery sectors, high labour costs and regulatory measures that hinder its ability to compete. Without this funding, the corporation said in its 2023 annual report that it would run out of cash reserves by the second quarter of 2025.

“Significant change is urgently needed to modernize the operating model and preserve the national postal service,” Canada Post said, adding that it is working to improve service through facility upgrades, new sorting equipment and digital platforms.

The funding is intended as a temporary financial bridge while the government and Canada Post develop a sustainable plan for the future.