Federal Government Authorizes $673 Million in Repayable Funding for Canada Post Operations Through 2027

The federal government has authorized up to $673 million for Canada Post to allow the Crown corporation to meet its operating and income demands through March 2027. That amount was carried over from the roughly $1 billion authorized earlier in 2026. 03-billion cash injection last year that failed to sustain Canada Post past early February 2026.

57-billion loss before tax in 2025, a 46 per cent jump from the year before. 4-billion between 2018 and 2025, according to its latest annual report. Cbc reported that Canada Post has been accessing repayable funding from the government of Canada.

The short-term financing liability is within the regulations of the Canada Post Corporation Act and is designed to ensure the corporation can maintain solvency and continue operating.

Canada Post says it must modernize through reforms that include community mailboxes and possible post office closures. The corporation has sparred with its union over wages and structural changes for more than two years, with workers taking to the picket line repeatedly during that period. Some 55,000 union members started voting last month on a five-year contract.

The union contract ratification vote wraps up on May 30. Both sides have agreed not to engage in any strikes or lockouts while the ratification vote takes place. Employees are also casting ballots on whether to authorize a strike mandate in case they reject the deal.

About 60 per cent of the union board endorsed the proposed collective agreement. The union's president has asked members to reject the proposed agreement.