The Canadian government has announced a significant financial intervention, providing Canada Post with a $1.01 billion repayable loan as the postal service grapples with ongoing financial burdens. This funding is part of a strategy to support the Crown corporation in maintaining its operations and solvency. The loan will be available as needed and is intended as a short-term bridge while Canada Post implements necessary reforms to achieve long-term viability.

This latest financial support comes in the wake of a previously announced $1.03 billion rescue package in January 2025, which Canada Post indicated would be insufficient to carry it through to the end of the fiscal year. As outlined by the corporation, continuous operational challenges necessitate access to short-term financing for the next twelve months, suggesting an urgent need for structural changes within the organization to restore its financial health.

The government emphasized that while Canada Post is required by law to be financially self-sustaining, it has incurred substantial deficits over recent years. By providing this funding, the government aims to ensure that postal services can continue without disruption, allowing the company to pursue reforms aimed at restoring its fiscal stability and operational efficiency in the future.