Cooperation Canada’s Reaction to the 2026 Spring Economic Update

Canada’s Finance Minister François-Philippe Champagne tabled the Spring Economic Update 2026 on April 28, against a backdrop of growing global instability and fragmentation.

While critical elements of international assistance remain absent in the Update, Cooperation Canada welcomes Canada’s renewed and increased commitment to climate finance, demonstrating Canadian leadership on climate action. This includes $3 billion over five years to Global Affairs Canada and $2.732 billion to FinDev over 3 years starting in 2028-29, with a goal of delivering over $13 billion in climate-related support to developing countries over the next five years. Important details on the source and composition of this financing still need to be clarified, and Cooperation Canada stands with partners, including the Climate Action Network, in calling for this investment to include substantial and accessible grant-based finance for Global South partners.

This follows Budget 2025’s $2.7 billion in cuts to international assistance over four years, and ongoing uncertainty on the direction and priorities of Canadian international assistance in a fast-shifting global landscape. Cooperation Canada is concerned that Canada is not fully leveraging international cooperation as a strategic foreign policy tool, despite evidence that investments in poverty reduction, human rights, and inclusive growth strengthen global security and support Canada’s long-term interests. Canada continues to position itself as a global leader, however meaningful ambition must be matched by clear commitments on international cooperation. Budget 2026 will offer an opportunity for this.

The Update also recognizes the important role that the charitable sector and non-governmental organizations play in Canada and makes a commitment modernizing tax rules for charities. Cooperation Canada looks forward to actively participating — alongside others — in this process to modernize the tax framework for the charitable sector.

“The 2026 Spring Economic Update brings renewal and increase to Canada’s climate finance commitments, which we very much welcome, but leaves key questions unanswered on the role of international cooperation in Canada’s foreign policy,” said Kate Higgins, CEO of Cooperation Canada. “This creates opportunities for engagement, and we look forward to working with the government to ensure that international cooperation is positioned as a core pillar of Canada’s global engagement and delivers impact in a more complex world.”

Notes to Editors

Cooperation Canada is the national voice for Canadian international development and humanitarian organizations. Representing over 100 organizations, we convene, coordinate and advocate for effective, inclusive and accountable international cooperation that contributes to a fairer, safer and more sustainable world.