The Canadian federal government is extending over $1 billion to Canada Post in the form of a repayable loan to assist the troubled Crown corporation in maintaining its financial stability and operational continuity. This $1.01 billion fund will be disbursed as required and is intended as a short-term financial lifeline.
This additional funding supplements the $1.03 billion previously allocated by Ottawa in January 2025. The move comes as Canada Post, despite its mandate for financial self-sustainability, has faced substantial losses in recent years, necessitating a strategic plan to ensure long-term viability.
According to Public Services and Procurement Canada, the support aims to address the urgent financial challenges faced by Canada Post, which had indicated the need for further financial assistance beyond the initial funding to sustain operations until the end of the fiscal year.
The government’s latest financial aid is aimed at safeguarding service provision while Canada Post undertakes necessary reforms to enhance its long-term sustainability. Canada Post, acknowledging its financial struggles, has submitted a transformation plan to the federal government outlining measures to ensure the organization’s fiscal health while meeting the needs of Canadians effectively.