Federal plan to ease grocery costs explained

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Tashi Farmilo

Published in the Pontiac Journal on February 25, 2026.

OTTAWA – A new federal plan aimed at making life more affordable for Canadians, particularly as food prices continue to rise, is being rolled out. MP Sophie Chatel welcomed the government’s proposed Canada Groceries and Essentials Benefit, describing it as
“real and immediate relief” for families and individuals feeling the pressure of inflation.

The announcement comes amid ongoing concern about affordability, particularly in rural areas like the Pontiac, where food and transportation costs tend to be higher. “Each week, I hear directly from residents struggling to put food on the table,” said Chatel. “These measures are going to help thousands of households right here in our community.”

The Canada Groceries and Essentials Benefit is designed to replace and expand the existing GST credit. If passed by Parliament, it would deliver $11.7 billion in additional aid over six years to more than 12 million Canadians with low or modest incomes. A one-time lump-sum top-up would be issued no later than June 2026, followed by increased quarterly payments starting in July.

Under the proposed plan, a single adult could receive up to $950 during the 2026–27 benefit year, while a family of four could receive as much as $1,890. These figures include both the one-time top-up and a 25% enhancement to the annual benefit, indexed to inflation. No separate application would be required, though recipients must file their 2024 and 2025 tax returns to qualify.

Chatel said the support would particularly benefit seniors, single parents and working families in her riding. In addition to direct payments, she highlighted federal investments aimed at strengthening food supply chains and supporting local producers, including a $500-million strategic fund for businesses and $150 million for food security initiatives.

“Helping our farmers and food banks is just as critical as helping households,” Chatel said. “We’re investing in a more resilient, locally anchored food system that benefits everyone in our region.”

On social media, Chatel added that she welcomed the direct support announced for farmers and processors, noting they are essential to putting food on Canadians’ tables. She said long-term affordability depends on strengthening Canada’s ability to grow, process and distribute food locally.

A further $20 million will be allocated to food banks through the Local Food Infrastructure Fund, which Chatel said addresses “urgent, growing needs” in communities already facing high demand.

Legislation enabling the new benefit is expected to be introduced in Parliament. If passed and given royal assent, the first payments would be issued in spring 2026.

“By making life more affordable and investing in a more resilient economy, we are sending a clear message: no one should be left behind,” she said.