Question Period Note: Overview — Tabling of the Supplementary Estimates (A) for Fiscal Year Ending March 31, 2027

About

Reference number:
PA-SUPPSA-202627-01
Date received:
May 28, 2026
Organization:
Employment and Social Development Canada
Name of Minister:
Hajdu, Patty (Hon.)
Title of Minister:
Minister of Jobs and Families

Issue/Question:

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (A) for fiscal year ending March 31, 2027?

Suggested Response:

ESDC is requesting adjustments for:
Table1: Voted Appropriations (in dollars)
A. Voted Appropriations Operating
Vote 1 Grants and Contributions
Vote 5 Total
1. Funding for the Union Training and Innovation Program under the Canadian Apprenticeship Strategy (Budget 2025) 0 25,000,000 25,000,000
2. Funding for the Pilimmaksarniq: Nunavut Inuit Employment and Training Survey 650,602 0 650,602
3. Funding for the Black Canadian Communities Program 2,754,500 23,700,000 26,454,500
4. Funding to administer supplemental payments to Canada Disability Benefit recipients 2,692,902 0 2,692,902
5. Funding for Migrant Worker Support Program 2,055,814 17,958,728 20,014,542
6. Funding for government advertising programs (horizontal item) 3,000,000 0 3,000,000
Sub-total Voted Appropriations 11,153,818 66,658,728 77,812,546
Table 2: Transfers (in dollars)
B. Transfers Operating
Vote 1 Grants and Contributions
Vote 5 Total
7. Internal reallocation of resources from contributions ($1,000,000) to the grant entitled Strategic Engagement and Research Program 0 -1,000,000
+1,000,000 0
Sub-total Transfers 0 0 0
Table 3: Budgetary Statutory Authorities (in dollars)
C. Budgetary Statutory Authorities Total
8. Old Age Security Program 492,000,000
9. Contributions to employee benefit plans 1,510,358
Sub-total Budgetary Statutory Authorities 493,510,358
Table 4: Summary of Total Budgetary Authorities (in dollars)
Budgetary Authorities
Transfers Adjustments Total
Vote 1 – Operating expenditures 0 11,153,818 11,153,818
Vote 5 – Grants and Contributions 0 66,658,728 66,658,728
Total Voted Appropriations 0 77,812,546 77,812,546
Statutory 0 493,510,358 493,510,358
Total Budgetary Authorities 0 571,322,904 571,322,904

Background:

A. Voted Appropriations
1. Funding for the Union Training and Innovation Program under the Canadian Apprenticeship Strategy (Budget 2025) - $25.0 million
Budget 2025 announced $75 million over three years, starting in 2026 to 2027, for Employment and Social Development Canada to expand the Union Training and Innovation Program (UTIP), which supports union-based apprenticeship training, innovation, and enhanced partnerships across Canada in the Red Seals trades.
This funding would be used to provide additional investments in union-based activities that is expected to benefit over 34,600 individuals.
ESDC is requesting authority to include $25,000,000 in Vote 5 (Grants and Contributions) for Funding for the Union Training and Innovation Program under the Canadian Apprenticeship Strategy as part of the 2026–27 Supplementary Estimates (A).
2. Funding for the Pilimmaksarniq: Nunavut Inuit Employment and Training Survey - $0.7 million
ESDC is seeking authority to access funding, totaling $1,482,097 over fiscal years 2026-27 to 2028-29, from the Section 35 Rights Funding Envelope, including $650,602 for fiscal year 2026-27.
This funding will enable ESDC to fulfill its obligations under Chapter 23 of the Nunavut Agreement and the 2024 Nunavut Implementation Contract by facilitating the collection of crucial data for the Nunavut Inuit Labour Force Analysis (NILFA). This data is essential for informing efforts to achieve a representative public sector in Nunavut. Additionally, in response to gaps created by the pause of the Indigenous Peoples Survey, ESDC is seeking extra funding to conduct a standalone survey in 2027, ensuring that time-sensitive obligations under the Nunavut Agreement and the Nunavut Implementation Contract are met.
ESDC is requesting authority to include $650,602 in Vote 1 (Operating expenditures) for the Pilimmaksarniq: Nunavut Inuit Employment and Training Survey as part of the 2026 27 Supplementary Estimates (A).
3. Funding for the Black Canadian Communities Program - $26.5 million
A 2025-26 off cycle funding decision committed to provide $135.7 million over five years and $27.1 million per year ongoing in support of the Black Canadian Communities Program.
This investment is an essential element that will enable the Government of Canada to address the significant and unique challenges Black communities face in Canada, with plans for dedicated funding to improve the socio-economic situations of Black populations.
ESDC is requesting authority to include $2,754,500 in Vote 1 (Operating expenditures) (excluding EBP costs of $594,629) and $23,700,000 in Vote 5 (Grants and Contributions) for the Black Canadian Communities Program as part of the 2026-27 Supplementary Estimates (A).
4. Funding to administer supplemental payments to Canada Disability Benefit recipients (Budget 2025) - $2.7 million
Budget 2025 announced a funding of $115.7 million over four years, and $10.1 million per year ongoing, for a one-time supplemental payment of $150 for Canada Disability Benefit (CDB) recipients who hold an approved Disability Tax Credit (DTC). This initiative aims to alleviate out-of-pocket medical practitioner fees associated with applying for or renewing the DTC certificate.
The funding will facilitate the administration and implementation of this supplemental payment through the existing Canada Disability Benefit system. Eligible CDB recipients will receive the supplemental payment for each DTC certification or recertification while they are enrolled in the CDB, helping to offset application costs and enhance access to the benefit.
ESDC is requesting authority to include $2,692,902 in Vote 1 (Operating expenditures) (excluding EBP costs of $492,911) to administer supplemental payments to Canada Disability Benefit recipients as part of the 2026 27 Supplementary Estimates (A).
5. Funding for the Migrant Worker Support Program - $20.0 million
A 2026 off-cycle decision from the Department of Finance earmarked in the fiscal framework $20.5 million (including EBP) to renew the Migrant Worker Support Program (MWSP) for 2026 to 2027.
This funding will enable ESDC to continue supporting the temporary foreign workers by empowering them to understand their rights and access essential services, fostering their integration into Canadian society, strengthening local economies, and building connections within communities, which will ultimately lead to improved outcomes and reduced turnover in the workforce.
ESDC is requesting authority to include $2,055,814 in Vote 1 (Operating expenditures) (excluding EBP costs of $422,818) and $17,958,728 in Vote 5 (Grants and Contributions) for the Migrant Worker Support Program as part of the 2026 27 Supplementary Estimates (A).
6. Funding for Government advertising programs (Horizontal item) - $3.0 million
In line with Budget 2025, one of the Government of Canada’s commitments is to reduce high youth unemployment and help youth build skills to gain employment.
The 2026 27 advertising campaigns aim to encourage youth to enter key-high-demand sectors like skilled trades and STEM while providing resources for employment pathways. The campaigns will also promote awareness of the Government’s economic protection plans and offer supporting information for those impacted by tariffs.
ESDC is requesting authority to include $3,000,000 in Vote 1 (Operating expenditures) for Government advertising programs as part of the 2026 27 Supplementary Estimates (A).
B. Transfers
7. Internal reallocation of resources from contributions to the grant entitled Strategic Engagement and Research Program – $1,0 million
The Strategic Engagement and Research Program (SERP) is a grant and contribution program that allows the department to fund research and research-related events (such as academic and policy conferences) that are aligned with the Department’s mandate and government priorities.
Funding of $0.6 million will support international research activities, such as the work undertaken by the Organization for Economic Co-operation and Development (OECD), the International Labour Organization (ILO), the International Energy Agency (IEA) and the Organization of American States (OAS). The remaining funding of $0.4 million will support domestic research activities and policy conferences, in line with the policy objectives and mission of the Department.
ESDC is requesting authority to include an internal reallocation of $1,000,000 in Vote 5 from contributions to grants for SERP as part of the Supplementary Estimates (A) 2026 27. This internal reallocation does not increase the department’s Vote 5 (Grants and Contributions) funding.
C. Statutory Budgetary Authorities
8. Old Age Security Program – increase of $492 million
It is estimated that approximately $89.3 billion in Old Age Security program benefits will be paid to eligible beneficiaries in 2026-2027.
The increase in the estimated expenditures for the Old Age Security program benefits is mainly due to:
• a higher estimated average monthly benefit for the Old Age Security pension under the Old Age Security program; and
• a decrease in the estimated amount recovered from higher-income seniors through the Old Age Security Recovery Tax.
The combined effect is an increase of $492.0 million – representing an increase of 0.6% – in estimated Old Age Security program benefits in comparison with the 2025 Budget.
Old Age Security Payments – Increase of $695.0 million
• an increase in the estimated average monthly benefit for the OAS pension from $755.34 to $759.03, accounting for an increase of $350.0 million.
• a decrease in the estimated amount of benefit repayment for the OAS pension under the OAS Recovery Tax from $3,783.0 million to $3,438.0 million, accounting for an increased expenditure of $345.0 million.
Guaranteed Income Supplement Payments – Decrease of $188.0 million
• a decrease in the estimated average monthly GIS benefit from $652.44 to $646.41, accounting for a decrease of $188.0 million.
Allowance Payments – Decrease of $15.0 million
• a decrease in the estimated average monthly Allowance benefits from $778.57 to $760.71, accounting for a decrease of $15.0 million.

  1. Contributions to employee benefit plans – Increase of $378.2 thousand
    Contributions to employee benefit plans include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.
    The increase of $1,510,358 is directly attributable to the Vote 1 (Operating expenditures) funding being requested through these Supplementary Estimates (A) for the voted appropriations item funding for:
    • Funding for the Black Canadian Communities Program ($594,629)
    • Funding to administer supplemental payments to Canada Disability Benefit recipients ($492,911)
    • Funding for Migrant Worker support Program ($422,818)

Additional Information:

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.
ESDC is requesting a total of $79,3 million in additional authorities through the Supplementary Estimates (A):
An increase of $11.2 million in Vote 1 Operating expenditure
An increase of $66.7 million in Vote 5 Grants and Contributions
An increase of $493.5 million in Statutory items