Ottawa proposes $2.6 billion for operations and mailbox conversions while asking letter-mail users to pay more from 2027

OTTAWA — National News Service – A single domestic stamp would rise to $2 in 2027 and annual increases of seven per cent would follow under the federal government’s latest effort to stabilize Canada Post.

Budget 2026 proposes $1.4 billion over two years to support the Crown corporation’s operations and $1.2 billion over seven years to convert more urban door-to-door delivery to community mailboxes. The government estimates the mailbox program will save about $2.2 billion over 10 years.

A single stamp for a standard domestic letter currently costs $1.44, or $1.24 when bought in a booklet. Permanent stamps would remain valid after the price increase because they cover the current domestic rate whenever they are used.

Four million addresses in line for change

Canada Post says nearly four million addresses that still receive door delivery will move to community mailboxes over several years. About three-quarters of Canadian addresses already use centralized delivery, apartment boxes or post-office boxes.

The corporation has published community and postal-code schedules for some conversions in late 2026 and 2027. It says customers with functional limits can apply for free delivery accommodations, which may include changes to mailbox access or another delivery arrangement based on individual needs.

The federal budget also proposes higher annual funding for library-material rates and expanded postal inspections, especially in Indigenous, northern and remote communities.

Losses drive the overhaul

Canada Post reported a $277-million loss before tax in the second quarter of 2026 and a $482-million loss for the first half. Letter-mail revenue fell 9.1 per cent from the same quarter a year earlier as Canadians continued to send fewer letters.

The corporation says centralized delivery will lower costs and improve security. Postal workers have argued in earlier disputes that service cuts can weaken the public network and reduce jobs. No new union response to the budget measures was located before the research cutoff.

The budget proposals still require parliamentary approval and operational decisions by Canada Post. Readers should watch for a firm 2027 stamp-rate date, the treatment of booklet prices, updated conversion schedules and details of the accommodation program.