Overview

• Finance Minister François-Philippe Champagne directed all cabinet ministers in early July to identify 7.5% savings for the 2026-27 fiscal year, rising to 15% by 2028-29 under the government’s pay-as-you-go rules.
• Foreign Affairs Minister Anita Anand confirmed that Global Affairs Canada is included in the cuts and described the measure as necessary to eliminate red tape and inefficiencies.
• Departments must now submit detailed proposals showing how they will achieve their targets while aligning any new funding requests with mandate letter objectives.
• Former envoy Peter Boehm warned that reducing diplomatic staff could undermine Canada’s influence abroad and its capacity to protect Canadians overseas.
• The move parallels U.S. State Department actions, where more than 1,300 employees are being laid off as part of its own budget-cutting efforts.