The Canadian federal government has allocated over $1 billion to Canada Post in the form of a repayable loan to assist the struggling Crown corporation in maintaining its financial stability and operational continuity. This financial aid, amounting to $1.01 billion, is intended as a short-term financial bridge and supplements the $1.03 billion previously announced in January 2025.
Public Services and Procurement Canada emphasized the necessity for a clear plan to restore Canada Post’s long-term stability due to its recent financial losses, despite the corporation’s mandate to be financially self-sustaining. The government’s decision to provide additional financial support comes after Canada Post indicated the need for further assistance, as the previously allocated funds were projected to be depleted before the end of 2025.
The federal government aims to sustain Canada Post’s services while the organization implements reforms to ensure its viability in the future. Canada Post acknowledged the significant financial hurdles it faces and stated that it has presented a transformation plan to the government, outlining strategic measures to deliver essential services in a financially sustainable manner.