Canada's 2026 Budget: Sport and Recreation Highlights
Updated: 10h
Another year, another federal budget. Canada’s 2026 budget was released on November 5th. There are a few wins in this budget for sport, physical activity and recreation. This budget may actually start to view the sport, physical activity and recreation sector as critical to community well-being, cultural celebration, and national identity, but unfortunately misses the mark when it comes to its importance on affordability and the economy.
We will talk first about the wins in this budget, and then we will talk about the misses.
First, the messaging and symbolism of sport within the budget indicates that this government gets what sport can be about. Which is the first win. When we are trying to talk to a group that understands the basic value of what you bring to the table it is easier to talk to them about it and expand upon it.
There appeared to be a shift in tone in the language and symbolism that the budget uses in terms of sport and recreation:
Language used treats sport and recreation as essential public goods rather than optional amenities.
“Budget 2026 provides unprecedented support to Canadian culture and recreation— more than five times last budget’s record levels.” pg 4
“More fundamentally, it means giving Canadians access by making the Canada Strong Pass permanent so people can visit our museums and national parks for free and by making the greatest works of Canadian literature freely available for all Canadians. It means record investment in our national parks, recreational facilities, sportsplexes and hockey rinks. It means supporting our local festivals and performing arts events to celebrate Canada’s 160th anniversary.” pg 5
“Arenas, ice rinks, and recreational facilities are at the heart of many communities across Canada. They are where so many Canadians first learn to skate, where young Canadians gather after school and adults lace up after work, and where families and friends huddle in the stands for the sports they love. But many of these facilities are aging and need significant investment to remain safe, accessible, and ready to serve their communities for years to come.” pg 227
“Delivering for Canadians” since Spring 2026 timeline (pg 10) included Canada’s role as co-host of the FIFA World Cup (June 11-July 19). It can be debated how much this actually “delivered” for Canadians as the impact was very limited to the two cities in which they were hosted, and even then the economic impact was muted, but the symbolic gesture underscores the government’s willingness to associate itself with major sporting events as a tool for national unity and global engagement.
Symbolic images of sport throughout the budget document to instill a sense of national pride and identity and talk about the importance of sports to Canadian culture.
Besides the shift in how sport is spoken about and displayed there were a few really great funding announcements related to sport, physical activity and recreation.
Wins for the sport system:
$32 Million Over Four Years:
$16 million for Indigenous Youth Sport Programming:
Targeted at the Sport for Social Development in Indigenous Communities program, this funding aligns with reconciliation and community well-being goals.
$16 million for Safe Sport Initiatives:
Renewed support for the Canadian Safe Sport Program to combat maltreatment and foster safe environments.
Note: No large sport system funding announcements were expected in this budget because the significantly increased funding for the sport system was announced in the 2026 Spring Economic Update. It proposed to provide $755 million over five years starting Fiscal Year (FY) 2026-27 and $118 million ongoing to support Canada’s sport system. This includes:
Hosting and competing: $50 million over five years to bring more world-class sporting events to Canada. Funding specifically tied to legacy-building projects that deliver lasting benefits well beyond the events themselves.
Supporting high-performance athletes: $45 million over five years and $8 million ongoing to support athletes train, compete and perform.
Supporting governance structures: $660 million over five years and $110 million ongoing for sport organisations so that they can invest in a strong and safe sport system to grow participation nationwide.
Wins for broader physical activity and recreation sector:
The Canada Strong Pass was renewed for 2027.
This means free entry to our national parks, and discounted overnight camping: decreasing the barriers to entry to access outdoor recreation such as hiking, skiing, kayaking, canoeing, swimming, etc.
Free entry to national parks may have been part of a 13% increase in visits in FY 2025-26, while a park pass may not be a huge expense, it does create a barrier for some. We do need to figure out how to deal with the impacts of overtourism.
$3.6 billion over 10 years for Parks Canada to manage and maintain 20,000 assets. This follows the $520 million allocated in 2026 to rebuild Jasper National Park after the 2024 wildfires.
This is likely partly to address the gap in funding for Parks Canada due to decreased revenue due to the Canada Strong Pass: based on data found for National Parks located in Alberta, about 45% of visits (3.5 million out of 7.8 million) in Fiscal Year 2025-26 occurred while the Canada Strong Pass was valid (June 20-September 2 2025 and December 12 2025 - January 15, 2026). Applying this 45% nationally, 11.7 million visits of the total 26.2 million, would have occurred during the Canada Strong Pass months. This would have resulted in roughly $96.2 million in loss funding in FY 2025-26 for Parks Canada, and this is not even including the 25% discounted overnight camping rates (assuming that the 11.7 million visits averaged into groups of 3, this would be roughly 3.9 million groups, multiplied by the $24.50 for a group day pass = $96.2 million). When looking at how the $3.9 billion is divided up over the next four years: $49 million in Fiscal Year (FY) 2027-28, $64 million in FY 2028-29, $71 million in FY 2029-30, $95 million in FY 2030-31. This $3.9 billion doesn’t seem to cover the annual revenue for Parks Canada lost due to the Canada Strong Pass. Now, due to increased visitation Parks Canada may be bringing in more revenue from parking fees, so perhaps it evens out.
$300 million for the new Canada 160 Fund.
An initiative to celebrate Canada’s 160th anniversary, with a focus on:
Experiences – it specifically names the Trans Canada Trail- the world’s longest hiking network spanning over 30,000 kilometres. It does not say how much is going towards the trans Canada trail specifically, but this is a recognition that it is an important experience and an important piece of Canada’s national unity that is really great. And obviously this is a one time fund, it recognises the importance of recreation to Canada. And there is a possibility that other recreation infrastructure will be included as part of this fund.
Community spaces (via the Build Communities Strong Fund).
$1.5 Billion Over Nine Years to revitalizing Recreational Facilities and Ice Rinks through the Build Communities Strong Fund:
$750 million for ice rinks and $750 million for other recreational facilities (e.g., arenas, community centers). Many facilities are aging and in disrepair, limiting access to sport and physical activity, especially in rural and Indigenous communities. We all know that there is a huge deficit in aging infrastructure in Canada. This investment could modernize spaces, making them more accessible, energy-efficient, and inclusive. This split may be missing the mark: Canada is so much more than hockey and this divide is a disservice to other sports. If we look at the Canadian Tire Jumpstart State of Play report for 2025, the top 5 sports that youth play are soccer 50%, swimming 46%, basketball 41%, biking 38% and badminton 28%. Even the top 5 organised sports that youth play, soccer at 39%, basketball at 31%, swimming at 21%, hockey at 17%, and volleyball at 17%. Do these numbers support sending half of this money to ice rinks?
Overall, I think I am generally happy with the messaging and the announcements made. Especially with the 1.5 billion in infrastructure spending, as this is really critical. But I do think that there are some misses in this budget.
Does this funding contribute to the achievement of Canada’s Sport Policy 2025-2035?
Canada’s Sport Policy outlines the following objectives for Governments to help achieve the outcomes of the policy:
Governments ensure organizations are resourced and held to appropriate standards to effectively perform their safety functions. (Healthy and Safe / Responsibility and Accountability)
Governments ensure resources are provided to organizations, initiatives, and agencies focused on ensuring that sport is safe. (Fairness and Integrity)
Governments ensure support is provided to initiatives that welcome newcomers, underrepresented, and Indigenous Peoples to sport. (Inclusion and Accessibility / Diversity)
Governments provide resources so that all Canadians can access and participate in physical education, sport, and physical activity. (Inclusion and Accessibility / Fairness and Integrity)
Governments support initiatives and events that deliver benefits to communities and support Calls to Action 87-91 of the Truth and Reconciliation Commission of Canada (2015). (Community-Building / Inclusion and Accessibility / Fairness and Integrity)
Governments collaborate closely with counterparts in physical activity and recreation sectors to maximize the health outcomes of sport. (Healthy and Safe)
I do think largely these objectives are being met through this budget. There was an increase in funding for sport organisation (2026 Spring Economic Update), there was an increase to safe sport funding (Budget 2026), there was an increase in funding to Indigenous sport (Budget 2026), and there was an increase to infrastructure spending, the Canada Strong Pass and funding to Trans Canada Trail - which will help provide resources so all Canadians can access and participate in physical activity.
Where I think this budget falls a little short for the sport system, is how this funding is going to change the culture of sport. That’s not necessarily a budget-specific issue and maybe more in the funding agreements made with National Sport Organisations (NSOs), but I think this still remains a big question for me. NSOs don’t run sport programming, so I am curious to see how that funding is supposed to increase participation. How are we actually going to increase participation in sport and change the culture of sport?
Missing: Taking action on broader goals to create active environments
My main criticism of this budget is the miss on creating active environments. If the government is supposed to provide resources so that all Canadians can access and participate in physical education, sport and physical activity, then I think that is where this budget fails the most. We talk a lot about creating active environments on this podcast. And this goes beyond what we typically think of as the sport sector, but includes all physical activity and recreational activities in this country. For example, we have explored bike sharing programs, active transit, urban agriculture projects, all essential parts of building an active environment where being physically active isn’t something you have to build into your day, it is just naturally part of it. And that, for me, is where this budget falls short. It doesn’t really have much of a focus on creating active environments.
Creating active environments is important for several reasons. We will focus on a few areas, specifically affordability, health, tackling climate change, productivity and economic growth. Active living is vital to reducing obesity, improving mental health, lowering carbon emissions, lowering health care costs and addressing the root causes of the affordability crisis.
What can help address the above?
Active Transportation Fund was not renewed.
The Active Transportation Fund was introduced in 2021 in support of Canada’s National Active Transportation Strategy which invested $400 million over five years to support the expansion and enhancement of active transportation infrastructure.
Side note: I have benefitted from this fund, as the bike lane installed on my street was supported by this fund. And I use it all the time, it's great.
No specific commitments to public transit expansion in Canada.
Studies have shown that people who take public transit get more physical activity than those who drive, simply from having to walk or bike to and from the bus or train stop.
No specific commitments to community-focused urban farming initiatives
There is funding here to support the achievement of the National Food Security Strategy, one that is supposed to focus on food security across the country. But none of these announcements are targeted interventions on being able to grow our own food in our communities, whether in community gardens, rooftop gardens, hydroponics, or school gardens, by residents.
Why creating active environments matters:
Health & Wellbeing:
Physical inactivity costs Canada an estimated $3.9 billion annually in healthcare expenses in 2022.
Reduces noise and air pollution in cities, air pollution from tires and exhaust increase respiratory diseases for residents and noise pollution from the sound of cars can increase anxiety and decrease quality of sleep for example.
Current public transit use in Canada produces an estimated $137 million in annual health care savings specific to respiratory conditions.
Urban green spaces and trails improve mental health and social cohesion.
Affordability:
Car ownership is a major expense for Canadians, especially in cities where parking, insurance, and maintenance costs add up (typically around $10,000 a year).
Urban sprawl and car dependency drive up housing prices and other related costs by increasing infrastructure demands (roads, parking, utilities), and increased property taxes which are needed to pay to maintain roads and other services.
Community gardens can reduce food costs, improve nutritional outcomes, and build resilience in food deserts. Local food systems are less vulnerable to global supply chain disruptions (e.g., climate change, geopolitical conflicts, rising gas prices).
Climate Change:
Reduces carbon emissions, in 2024 roughly 22% of Canada’s national emissions come from the transport sector, and about half of that comes from personal cars and light trucks.
Public transit use in Canada reduces annual greenhouse gas emissions by an estimated 4.7 million tonnes (est. $207 million).
It is estimated that if 1% of private car users switch to active transportation, the greenhouse gas emission savings would be approximately $564 million in savings per year, if 5% switched it would result in approximately $2.82 billion in savings per year.
There are some measures in the budget to help reach net-zero by 2050, but not nearly close enough to where it needs to be, and they do nothing to increase physical activity rates. For example:
National Heat Pump Rebate to support up to 820,000 households to install an electric heat pump and proposed funding to install up to 55,000 EV chargers through the Zero-Emission Vehicle Infrastructure Program
Economic Growth
Economic growth through creating active environments is a combination of all of the above through improving health outcomes which reduce the required health care expenditures by governments, reduces the cost of living (through a combination of decreased car spending and lower taxes) for citizens so that they have more disposable income to spend on other things, and lowering our carbon footprint which makes it easier for governments to take climate action and reduces required spending both on preventative actions and post-weather events. These actions all allow governments and citizens to spend their money on other priorities, increasing economic growth.
Studies have also shown that people who walk and bike spend more at businesses than those who drive.
Addressing physical inactivity will also aid productivity in this country:
Healthy people take less sick days.
Taxes can be more efficiently directed to services that actually improve quality of life rather than just trying to keep things afloat.
Finally, this budget does not recognize the economic powerhouse that sport, physical activity and recreation are to the nation. This budget almost entirely focuses on natural resources like forestry, mining and oil and gas as the only way to grow our economy. But we do have other natural resources that are economic powerhouses that are not recognized in this budget: our oceans, rivers, lakes, forests, plains, and our mountains. These natural resources power our economy and this is undervalued in budgets time and time again.
I want to draw our attention to a report in 2024 from Protect Our Winters Canada on the outdoor recreation sector. This report found that outdoor recreation contributes about $101.6 billion in economic activity, the second largest behind oil and gas which was at $131.1 billion. However, outdoor recreation supports 1.1 million jobs FTEs, this is the largest in their comparison table, the second largest was forestry with 830,000 jobs.
Beyond the outdoor recreation sector, The Price of Inactivity report by Canadian Fitness and Lifestyle Research Institute (CFLRI) and Canadian Parks and Recreation Association (CPRA) estimated the economic impact generated by sport, physical activity and recreation to be at $37.2 billion on an average annual basis. This value reflects the annual contribution to Canada’s gross domestic product from sport, physical activity, recreation and retail sales.
Now there would be some overlap in the two reports in what they are including, but this would still be over $130 billion, which based on my calculation passes the oil and gas sector as the largest sector.
This is a larger problem. The way we talk about arts, recreation and culture in general are often “nice to haves” when these are the things that make life worth living, these are what makes being human, human. And they are much more than that, arts, culture and recreation provide a lot of economic activity in this country.
So, this budget does not do a lot to recognise the economic value of sport, physical activity and recreation and creating active environments. It does not really recognize the impact, importance or potential for growth either. There are some positives, there are some announcements about investing and conserving our oceans:
$1.2 billion over four years to better protect our oceans and the life they sustain:
$740 million over four years to ensure Canada can support increasing economic activity on its coasts while protecting the marine environment.
$136 million over four years, to support marine conservation efforts through the Pacific Salmon Strategy Initiative, the Whales Initiative, and funding for Southern Resident Killer Whales.
$186 million over four years to strengthen Indigenous partnership and conservation efforts for the Northern Shelf Bioregion Reconciliation Framework Agreement.
Conserving 30% of its marine and coastal areas by 2030. To make further progress toward this conservation target, Budget 2026 announces new investments to establish additional National Marine Conservation Areas:
$282.7 million over 11 years and $18 million ongoing to Parks Canada to establish and operate two new National Marine Conservation Areas.
$9.2 million over four years to Parks Canada, and $10.5 million over four years to Fisheries and Oceans Canada, to support feasibility assessments for up to three additional National Marine Conservation Areas in the North.
Canada will also continue to explore new conservation agreements in the Arctic, drawing on long-term financing models such as Project Finance for Permanence.
This funding for ocean protection isn’t exactly equivalent to building a mutli-billion dollar pipeline to support the oil and gas sector, which likely has a lot more profits than the outdoor recreation sector. There is a lot more public investment in that sector than in the outdoor recreation sector. I think this is a really big mistake. Because, at the same time as we expand oil and gas, the outdoor recreation sector suffers: in the summer due to wildfires and then in the winter when there's no snow. It will also increase costs to rebuild after wildfires, for example the $520 million I already mentioned to rebuild Jasper National park infrastructure.
So there are really good things in this budget, and a few misses. We need to start focusing and talking about the economic impact of sport, physical activity and sport more because it should not, and can’t be dismissed. Without actually making changes to our lifestyles through creating active environments, we will fundamentally not address the issues that plague our health care systems, our carbon emissions, our lagging productivity, or have smart economic growth. What does this mean? It means we need to designate the sport, physical activity and recreation as a project of national interest, increase funding for active transportation, increase funding for public transit, increase funding for climate action, increasing funding for conservation, increase funding to Parks Canada to deal with the impacts of overtourism, increase funding for creating active spaces in the form of urban agriculture initiatives. To this government’s credit though, I think that right now the governance of the sport system is set. With the huge increase in funding for NSOs from the 2026 Spring Economic Update I think the sport system is in good shape. Although, I am curious to see how this will actually filter down to changes in the culture of sport in Canada, and how this funding will impact things for local clubs and sport programming on the ground. We shall see. But, this funding has fixed a huge problem.
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