Canada Plans $24 Billion in Spending Cuts, Targeting Indigenous Programs and Veterans – The Deep Dive
Jul 28, 2025
Canada’s federal government is preparing sweeping spending reductions totaling nearly $24 billion by 2028 that would slash funding for Indigenous services, veterans’ benefits, and international aid to help pay for increased military spending and tax cuts, according to a new analysis.
More than half the cuts would come from eliminating government transfers to other levels of government, nonprofits, and businesses rather than federal job reductions, finds economist David Macdonald at the Canadian Centre for Policy Alternatives, who analyzed leaked ministerial directives.
The deepest cuts would target Indigenous programs, with $4.5 billion in annual reductions by 2028 affecting First Nations education, health care, policing and community infrastructure. The cuts represent nearly one-fifth of the government’s total “savings” plan.
