Federal energy minister highlights $22B in affordability measures during Medicine Hat visit

Hodgson said more than 12 million low- and modest-income Canadians will receive a one-time 50 per cent increase in their annual benefit this winter.

That could mean up to $339 for a single person without children and up to $679 for a couple with two children in the first quarter of 2027.

The minister said approximately 30,000 Medicine Hat residents could benefit from the enhanced payment.

The budget also includes $3.2 billion through a National Food Security Strategy aimed at strengthening competition across food production, processing and supply chains.

On housing, Hodgson pointed to measures intended to increase supply and reduce construction costs, including changes to the GST on new homes that could help first-time buyers save up to $50,000.

The federal government is also investing $11.2 billion toward a 10-year plan to end homelessness.

For energy costs, the budget supports one million home retrofits, with households expected to save an estimated $1,400 annually on energy bills.

The government is also pointing to the removal of the consumer carbon price and suspension of the federal fuel excise tax as measures to lower costs at the pump.

Additional measures include making the Canada caregiver credit fully refundable, backed by an $845-million investment, and $2.1 billion to refocus the Canada Workers Benefit, which Hodgson said will support more than three million workers.

An expanded automated federal benefits program is also expected to reach an additional 150,000 Canadians with payments they are entitled to receive.

Hodgson said the measures build on existing federal programs, including the Canada Child Benefit, the Canadian Dental Care Plan and Old Age Security.

He said the affordability investments are intended to help Canadians facing financial pressures as the government works to strengthen the country’s economy.

“None of us asked for a trade war. None of us asked for the two global hegemons battling it out and us being caught in the middle of it,” Hodgson said during Thursday’s media availability.

“But again, the message in this budget is we can’t control what goes on outside of Canada. We can control what happens in Canada. We have a plan to build.”

Hodgson also pointed to investments in major infrastructure and energy projects, including the proposed Pacific Link to move Alberta oil to the West Coast, expanding liquefied natural gas exports and supporting the development of Alberta’s nuclear industry.

He said the budget also includes funding for electricity interties connecting Alberta’s power grid with British Columbia and Saskatchewan.

When asked why Medicine Hat was selected for Thursday’s announcement, Hodgson said he wanted to visit communities outside Canada’s major centres.

He said his family has connections to several Prairie communities and that he has travelled through Medicine Hat throughout his life.

During the media availability, Hodgson was also asked about Canadians who may earn too much to qualify for the enhanced grocery benefit but are still struggling with household expenses.

He acknowledged that rising costs are affecting people across different income levels, adding that the government’s longer-term approach includes creating well-paying jobs and bringing down the cost of food, housing and energy.

“Everyone’s feeling the pinch. We understand that,” Hodgson said.

“There are no magic solutions.”

Hodgson said the federal government is focused on creating opportunities for Canadians while providing additional support to those who need it most.

He also addressed ongoing trade tensions with the United States, saying Canada remains open to reaching an agreement but will not sign a deal that does not serve Canadian interests.

The minister said the government wants an agreement that allows Canadian industries to thrive while protecting the country’s sovereignty and ability to make its own trade decisions.

Hodgson was also scheduled to deliver a keynote address and participate in a fireside chat hosted by the Southeast Alberta Chamber of Commerce to discuss the federal budget late Thursday morning.

He had also attended an event at The Cypress Club in Medicine Hat on Wednesday.

by Jesse Gill