Federal Budget 2025 paints a gloomy picture for Canada's economic outlook and does little to inspire hope and security through supports for Canadians at a time when it would seem we need support the most.
The Canadian Teachers' Federation (CTF/FCE) acknowledges with gratitude the recent decision from the federal government to make the National School Food Program permanent. This is an initiative that will impact 400,000 children living in Canada, and their families. This is a life-changing initiative that we commend as it was one of our asks in our August 2025 Pre-Budget Submission - read that here.
The CTF/FCE is, however, very disappointed that the following asks are not addressed in the budget:
- Expansion of the federal student loan forgiveness program - This was a commitment in Budget 2024, yet, despite tireless advocacy, this important commitment is not even mentioned in Budget 2025. The CTF/FCE has been very clear about how impactful this initiative would be for Canadian educators and their students (as well as the countless other professions that stand to benefit). It would be a major step in addressing the significant retention and recruitment crisis across the country and we are troubled that there is no mention of the program expansion. The CTF/FCE will continue to seek answers on this.
- Increase to Mental Health Support - The federal government did mention increasing funding for healthcare infrastructure. We think that's a great investment, and this once again shows that the federal government recognizes that sometimes they need to take decisive action to address issues within jurisdictions we traditionally think are "provincial or territorial". We are discouraged, however, that there is no mention of the much-needed increases for mental health support.
- Overseas Development Assistance (ODA) - The federal government has decided to return to pre-pandemic levels when it comes to ODA. The CTF/FCE is concerned by this move to diminish support for our neighbours, partners, and allies at a time when the United States has taken pride in defunding foreign aid. The CTF/FCE has signed a joint letter with international development partners that condemns this decision by the federal government - read that here.
The 2025 federal budget really calls into question who this government envisions itself working for - Canadians or corporations? While it contains huge investments in infrastructure, artificial intelligence (AI), the military, and corporate tax cuts to spur innovation and growth, there is little to support everyday working-class Canadians and educators. The only mention of schools was the acknowledgement that unprecedented rates of immigration has put pressure on them; here, we again call upon the federal government to provide the necessary supports for additional language education to ease this burden.
The CTF/FCE recognizes the need to have a pathway to long-term financial prosperity, but the steps ahead need to be taken in a measured way. The Prime Minister said that Canadians need to be prepared to sacrifice during this time of uncertainty. However, the CTF/FCE feels that this budget leaves little by way of hope or excitement for what Canada can do for Canadians to continue making this the best country in the world to call home or to raise a family. We do appreciate and take note of the fact that many of the programs that the federal government has in place, will remain. Great things such as childcare, dental care, and the National School Food Program.
Still, we are concerned that significant cuts to the federal public service will hurt Canadians in the services that they need and access. The budget is unclear about which departments or who would be impacted, but a 10% reduction in the federal public service will hurt families. This arbitrary target is concerning. If our debt-to-GDP ratio is so competitive and if our credit ratings really are as strong as they can be, the federal government should be able to work towards fostering transformative investment from the private sector while providing transformative services to people living in Canada.
We will continue to advocate for teachers, education workers, and their families and that means the Canadian Teachers' Federation will continue to call for supports, programming, and investments into people.
