The Canadian federal government is providing a repayable loan of over $1 billion to Canada Post to assist the Crown corporation in maintaining financial stability and ensuring the continuity of its services. This financial aid, described as a short-term bridge, is in addition to the $1.03 billion allocated in January 2025.
Public Services and Procurement Canada stated that despite Canada Post’s mandate for financial self-sustainability, the corporation has faced significant losses in recent years, necessitating a clear plan to restore long-term stability. The decision to offer financial support comes after Canada Post projected the need for additional assistance, as the previously allocated funds were expected to be depleted before the end of 2025.
The federal government’s aim with the new funding is to sustain service operations while Canada Post implements reforms to ensure its viability in the long run. Canada Post acknowledged the financial challenges it faces and has submitted a transformation plan to the government, outlining measures to deliver essential services in a financially sustainable manner.