Your Guide to the Government's 2025-2026 Plan
A look at federal spending, procurement, and major projects on the horizon.
We're diving into the official 2025-2026 Departmental Plan for Public Services and Procurement Canada (PSPC). Think of this department as the government's central manager—it handles everything from buying goods and services and managing federal buildings to administering pay and pensions. Here’s a summary of their key plans for the upcoming fiscal year, straight from the source.
The Minister's Vision
The plan is introduced by The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement. He outlines the department's broad role and priorities for the year.
As the central purchaser for the Government of Canada, the department will continue to modernize and simplify its procurement processes while upholding a commitment to ethics and sustainability. In addition, PSPC (Public Services and Procurement Canada) will continue to strengthen efforts to detect fraud and address wrongdoing within the federal procurement system.
💰 Payments, Pay Stubs, and the Dental Plan
A huge part of the department's job is managing money—issuing payments, collecting revenue, and administering pay and pensions for federal employees. Here’s what’s planned:
Canadian Dental Care Plan: Important work will continue with partners to implement the Canadian Dental Care Plan, with participation expected to expand in 2025 as all eligible Canadians will have an opportunity to be added.
Public Service Pay System: Addressing the pay issues for public servants remains a top priority. The department will continue efforts to reduce the backlog of outstanding pay transactions and will advance the testing of a new, next-generation HR and Pay system.
The target for 2025-2026 is to have at most 88,000 employees facing potential pay inaccuracies at the Pay Centre, down from 112,273 in 2023-2024.
Federal Pensions: The department, which provides services to over 1 million members of 8 different federal public sector pension plans, plans to advance web renewal initiatives to give members more online access to services.
🛒 Buying for Canada: Goods and Services
As the government's central purchasing agent, PSPC manages billions in contracts. The plan focuses on modernizing this process and using its purchasing power to support Canadian policy goals.
The department has a planned spending of $187,050,746 for this area in 2025-2026.
The department will collaborate with other departments and agencies to improve oversight measures, particularly in documenting requirements and decision-making for the procurement of professional services.
Key Goals for 2025-2026:
Supporting Canadian Businesses:
Small and Medium-Sized Enterprises (SMEs): A key goal is to award at least 25% of the dollar value of its contracts to SMEs.
Indigenous Businesses: The government has a mandatory minimum target to award 5% of the total value of contracts to Indigenous businesses. The plan for 2025-2026 is to meet this 5% target.
Women-Owned Businesses: The target is for at least 15% of procurement processes to have participation from suppliers who are women.
National Shipbuilding Strategy: The department will continue to manage this key program to provide the Royal Canadian Navy and Canadian Coast Guard with modern vessels.
Green Procurement: At least 45% of contracts, standing offers, and supply arrangements are targeted to include "green" goods and services. The department also plans to support the purchase of zero-emission and hybrid vehicles for federal departments.
🏢 Property and Infrastructure: Buildings, Bridges, and Labs
PSPC is also the country's largest landlord, managing federal office buildings, Parliament, bridges, dams, and science labs.
Planned spending for property and infrastructure in 2025-2026 is $5,384,718,661.
Key Projects and Plans:
Reducing the Office Portfolio: The department will continue its plan to reduce the federal office portfolio by up to 50% over 10 years by accelerating lease terminations and disposing of underused properties.
Parliament Hill: Work continues on the major rehabilitation of the Parliament buildings. For the Centre Block, the goal is to complete designs by Fall 2025 and begin structural work and restoration.
Interprovincial Bridges: The plan includes advancing the replacement of the Alexandra Bridge and initiating planning for an additional bridge in the eastern National Capital Region.
Greening Buildings: The department has a target to reduce greenhouse gas emissions in its Crown-owned building portfolio by at least 63% from 2005 levels by March 31, 2026.
Improving Accessibility: A new program has been launched to improve the accessibility of federal buildings, aiming to exceed new standards.
Which of these planned initiatives are you most interested in following? Share your thoughts in the comments below. 🇨🇦