Federal government gives Canada Post $1.01B loan as postal service continues to struggle

The federal government is providing Canada Post more than $1 billion in a repayable loan to help the troubled Crown corporation remain financially healthy and keep its services running.

The $1.01 billion will be provided as needed and is described as a short-term financial bridge.

The new amount is in addition to the $1.03 billion from Ottawa announced in January 2025.

“Although Canada Post is required by legislative mandate to be financially self-sufficient, the corporation has accrued significant losses in recent years, making it clear that maintaining the status quo is not an option and a clear plan is needed to restore long-term sustainability,” Public Services and Procurement Canada said in a statement announcing the assistance Thursday.

In November, the Crown corporation said it would need another bailout in the short term because the January 2025 funds that were expected to be carried over to the end of the financial year in March will be used up by the end of 2025.

At the time, Canada Post said it needed access to short-term financing for the next 12 months.

The federal government said the latest temporary support is to ensure the service remains in place while the organization begins reforms to make it viable in the long term.

Canada Post said in an emailed statement Saturday that it is dealing with “significant financial challenges” and has submitted its proposed transition plan to the federal government and is working to finalize it.

“The plan details the decisive actions we are prepared to take to provide essential services to Canadians in a fiscally sustainable manner,” Canada Post said.