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Policy Shifts and Fiscal Tightening: Impacts for Non-Profits in BC
By Tyler Arnold, Policy and Advocacy Specialist at Vantage Point
The BC government faces a continuing trade war, tariffs, a tightening federal government, and an unstable economy. All these factors create uncertainty for the province, and we can expect Premier David Eby and his team to maintain their current approach for the near future.
The July Cabinet shuffle indicated where Premier Eby wants to see more leadership and is a signal to the province of the issues his government are taking most seriously – the biggest changes were new Ministers for the Housing, Public Safety, and Jobs and Economic Growth portfolios. The updated Cabinet directly reflects the public’s current top concerns. These updated priorities also come after a constrained BC Budget from this spring, as well as Mandate Letters for every Minister to review all their programs with an eye to efficient spending. Fiscal tightening continues at all levels of government.
Vantage Point and the BCNN are pleased that our advocacy was reflected in the BC Finance Committee’s official report on the Budget 2026 Consultation process, released on August 12. Our submission is available here. The Committee’s recommendations were specifically to provide stable, multi-year funding for non-profits, and to update contract and funding formulas to reflect operational realities non-profits face – both of which our submission directly advocated for.
Given the long tenure of the BCNDP and the uncertainty faced, non-profits should not expect big swings policy-wise, new programs, or renewed focus on social issues – expect Premier Eby to show the electorate that their government’s hand is steady at the wheel and focused on kitchen-table issues. We will continue to engage with the government on our sector’s issues – especially given the financial constraints felt by all.
Federal
On the federal political scene, non-profits can expect continued fiscal tightness. The government faces significant headwinds – the continuing trade war and tariff threats being the largest of them, and this economic uncertainty is leading governments across the country to try to rein in spending and preserve fiscal flexibility. Tighter budgets enable governments to retain a degree of flexibility to respond to unpredictable, emergent issues, and the tariff threat from down south is anything but predictable.
Additionally, spending on housing and the military is expected to increase, even as cuts are expected. According to the CBC, the federal government is currently conducting an operational spending review, and has target cuts: 7.5% for 2026-2027, rising to 15% by 2028-2029. Prime Minister Carney has publicly said health and social programs, pensions, OAS, and other programs like childcare, pharmacare and dental care, will all be spared (source), but it remains that the federal government is going to get leaner in the next few years. Additionally, a definition or list of “health and social programs” has not been given, and it is not currently clear what will and will not be protected. A fall Budget is anticipated, and it will be a strong indicator for the types of spending the federal government is likely to prioritize going forward.
The federal government is, dollar for dollar, the largest source of funding for the charitable and non-profit sector in the country – especially considering how many federal dollars make their way into provincial coffers, and from there into funder organizations, or cities, etc. While the newcomer and refugee non-profit subsector has experienced deep cuts due to the federal government slashing planned immigration numbers over the next few years, the Prime Minister has also indicated a few areas listed above in which cuts are unlikely – though specifics remain murky. For all subsectors, we can expect a tighter fiscal environment.
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