Department of Finance Canada said the federal government had introduced legislation to create the Canada Groceries and Essentials Benefit.
The proposed benefit would build on the existing Goods and Services Tax Credit. It would be indexed to inflation and would provide $11.7 billion in additional support over six years.
The immediate part of the proposal is a one-time top-up payment for people who already receive the GST Credit. That payment would provide $3.1 billion in assistance and would be paid as early as possible in the spring of 2026, subject to Royal Assent, and no later than June 2026.
The broader increase would raise GST-credit-related support by 25% starting in July 2026. That part of the measure would provide $8.6 billion from 2026-27 to 2030-31 and reach about 500,000 additional individuals and families.
The release said the benefit was intended for more than 12 million low- and modest-income Canadians, including about 280,000 people in New Brunswick.
The announcement also included food-affordability measures for businesses. A $500 million allocation from the Strategic Response Fund would be set aside to help businesses manage supply-chain disruption costs, and a $150 million Food Security Fund would support small and medium-sized enterprises and related organizations.
The main tax-benefit channel is the GST Credit system. The proposal would not be a general grocery price control; it would increase CRA-administered payments for eligible low- and modest-income households once the legislation is enacted.