Bill C-32 Appropriation Act No. 2 2026-27
C-32 An Act for Granting to His Majesty Certain Sums of Money for the Federal Public Administration for the Fiscal Year Ending March 31, 2027
Short Title: Appropriation Act No. 2, 2026-27
Bill Type: House Government Appropriation Bill
Bill Sponsor: President of the Treasury Board
Status: 2nd Reading in the Senate — First Reading in the Senate on June 9, 2026. This Bill has not passed yet.
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What is this Bill For?
Bill C-32 is this Federal government's main spending approval for the 2026–27 fiscal year. It authorizes the Government to withdraw $144,032,017,964 from the Consolidated Revenue Fund — money that was not already approved through other Legislation — to pay for the day-to-day operations, programs, grants, contributions and capital projects of Federal departments, agencies and Crown corporations from April 1, 2026 to March 31, 2027.
This is a routine Appropriation Bill. Parliament must pass it for the Government to legally spend money that was outlined in the Main Estimates.
WHO GAINS POWER
The Treasury Board gains significant flexibility through several open-ended authorities built into the Bill:
- Up to $1,000,000,000 in Government Contingencies — the Treasury Board can redirect this money to any department for urgent or unforeseen needs, including creating new grants and contributions, without returning to Parliament for approval.
- Up to $1,000,000,000 in Defence and Security Initiatives — same broad authority, directed at national defence and security spending.
- Up to $3,000,000,000 in Operating Budget Carry Forward and $750,000,000 in Capital Budget Carry Forward — unspent money from last year can be rolled into this year's budgets.
- Up to $600,000,000 in Paylist Requirements — covers pay adjustments, parental leave and severance without itemized approval.
- Up to $32,594,649 for Government-wide Initiatives — Treasury Board can top up any department's Budget to support strategic management priorities it defines.
The Minister of Finance gains authority to issue loan guarantees and direct payments to international financial institutions totaling potentially over $2,000,000,000 CAD equivalent, including guarantees for loans to Ukraine through the World Bank (up to US$1,000,000,000 over 25 years) and guarantees for Naftogaz through the European Bank for Reconstruction and Development (up to €200,000,000 over five years).
⚠️ Contingency and Defense Blanket Authorities — The $1,000,000,000 Government Contingencies vote and the $1,000,000,000 Defense and Security Initiatives vote allow the Treasury Board to create entirely new grants and contributions or increase existing ones without a separate vote in Parliament. The definition of what qualifies as "urgent," "unforeseen" or related to "national security" is not defined in the Bill.
⚠️ Multi-Year Loan Guarantees — The Finance Minister's authority to guarantee loans to Ukraine through the World Bank runs until fiscal year 2051–52 — a 25-year commitment authorized by a single Appropriation Bill. Future Parliaments will be bound by this guarantee without a separate vote.
WHO LOSES POWER
Parliament's ability to scrutinize individual spending decisions is reduced by the broad Treasury Board authorities described above. Once this Bill passes, the Treasury Board can move up to $5,382,594,649 across departments and into new programs without returning to the House of Commons for approval.
WHO GAINS MONEY
The largest single recipients of new funding in this Bill include:
- Department of Indigenous Services — $23,925,397,438 (grants, contributions, capital and operating)
- Department of Crown-Indigenous Relations and Northern Affairs — $11,860,882,306
- Department of Employment and Social Development — $13,624,908,780
- Department of National Defense — $48,369,033,041 (operating, capital, grants and insurance)
- Department of Health — $10,426,872,847
- Department of Housing, Infrastructure and Communities — $7,957,383,559
- Department of Foreign Affairs, Trade and Development — $6,834,581,877
- Department of Veterans Affairs — $8,120,847,465
- Canada Mortgage and Housing Corporation — $6,128,083,371
- Treasury Board Secretariat (including contingency and carry-forward pools) — $11,793,163,535
- Canada Revenue Agency (Schedule 2, multi-year) — $4,847,878,484
- Atomic Energy of Canada Limited — $1,704,470,844
- Canadian Broadcasting Corporation — $1,383,252,311
- Public Health Agency of Canada — $1,462,263,070
- VIA Rail Canada Inc. — $1,152,590,245
- VIA HFR - VIA TGF Inc. — $710,159,448
WHO LOSES MONEY
Canadian taxpayers. This Bill authorizes $144,032,017,964 in federal spending for one fiscal year, drawn from the Consolidated Revenue Fund, which is funded through taxes, fees and borrowing.
THE CATCH
The Bill is structured as a standard appropriation — it does not create new programs or change existing law. However, the broad Treasury Board contingency and carry-forward authorities mean that a significant portion of the total ($5+ billion) can be redirected without further parliamentary approval. The purposes, terms and conditions for each spending item are set by the Estimates documents, not by the Bill itself — meaning the detail is in a separate document that most Canadians will never read.
⚠️ Contingency and Defence Blanket Authorities — The $1,000,000,000 Government Contingencies vote and the $1,000,000,000 Defence and Security Initiatives vote allow the Treasury Board to create entirely new grants and contributions or increase existing ones without a separate vote in Parliament. The definition of what qualifies as "urgent," "unforeseen" or related to "national security" is not defined in the Bill.
⚠️ Multi-Year Loan Guarantees — The Finance Minister's authority to guarantee loans to Ukraine through the World Bank runs until fiscal year 2051–52 — a 25-year commitment authorized by a routine annual spending Bill. Future Parliaments will be bound by this guarantee without a separate vote.