Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Canada, education falls under the exclusive jurisdiction of the 13 provinces and territories, as established by the 1867 Constitution and its amendments through 2011. Each province and territory operates an independent Ministry of Education responsible for the governance of education within its jurisdiction. Canada has no national or federal ministry of education. Provinces and territories share information and discuss matters of common interest through the Council of Ministers of Education, Canada (CMEC).
Under section 93 of the Constitution, the federal government directly funds education for First Nations communities. First Nations education is controlled by First Nations and funded by Indigenous Services Canada (ISC).
The federal government supports provincial capacity to provide services, including education, through transfer programmes outlined in section 1.
School funding methods vary across jurisdictions. Historically, most schools were financed through local property taxes. Over time, all provincial governments, except Manitoba, transitioned to funding education from provincial revenues. Each province determines its annual education budget and transfers funds to municipal school districts, which manage the distribution and administration of these finances. Federal, provincial, and municipal governments obtain revenue from taxes, social contributions, grants, and other sources, which may be used to finance education.
1. Education resources to subnational governments
Canada Health Transfer and Canada Social Transfer
The Canada Health Transfer provides long-term, predictable funding for health care. The Canada Social Transfer supports post-secondary education, social assistance, social services, early childhood development, and early learning and childcare. This transfer is allocated on an equal per capita cash basis and is legislated to grow by 3% annually.
Total Equalisation transfers aim to address fiscal disparities among provinces. Established in 1957, the programme ensures provincial governments have sufficient revenues to provide comparable levels of public services at comparable levels of taxation. Funding grows in line with a three-year moving average of nominal gross domestic product. The Government of Canada funds Equalisation from general revenues, primarily federal taxes. Provinces receive unconditional payments based on a legislated formula, made twice monthly in 24 equal instalments during the fiscal year.
Territorial Formula Financing helps the three territorial governments fund essential services in recognition of higher costs in the north. Separate from Equalisation, the territories do not receive Equalisation funds. The programme is annual and unconditional, supporting essential public services such as hospitals, schools, infrastructure, and social services. Each territory receives funds calculated using a unique gap-filling formula, considering yearly expenditure needs and revenue-generating capacity. Payments are made monthly.
Fiscal Stabilisation allows the federal government to provide financial assistance to provinces experiencing a significant year-over-year decline in revenues. Payments are determined by the Minister of Finance using a legislated formula and calculated on a per-person basis. Every province in Canada has benefited from this programme at some point.
Other Transfer Arrangements
Certain provinces benefit from specific agreements that provide offset payments or tax reductions, including the Nova Scotia Offshore Agreements, the Newfoundland and Labrador Offshore Arrangements, and the Quebec Abatement. Territorial governments can also borrow funds up to specified limits: $3.1 billion for the Northwest Territories, $1.2 billion for Yukon, and $1.05 billion for Nunavut.
Indigenous Services Canada (ISC) implements a formula-based regional funding model for elementary and secondary education. ISC works with First Nations to refine and update the model annually to address students’ needs. ISC has collaborated with First Nations to develop treaty-based, regional, and/or local education agreements.
Provincial Level Grants
Ontario: Legislative Grants and Core Education Funding
Under Ontario’s 1990 Education Act, payments to school districts are made through legislative grants. The province’s 72 district school boards and 10 school authorities are primarily funded through core education funding, which accounts for approximately 90% of a school board’s total operating revenue. Funding calculations consider factors such as student enrolment, class size, the number of schools in the board, student and school needs, school location, demographic profile, and teacher experience and qualifications. Ontario prioritises funding for key areas including students with special education needs, student mental health and wellness, student safety and well-being, and Indigenous education. Core education funding comprises six funds: the classroom staffing fund, learning resources fund, special education fund, school facilities fund, student board administration fund, and student transportation fund.
In addition, the province may allocate Responsive Education Programs (REP) funding to support temporary special projects and activities. Capital funding programmes are also provided for the construction and improvement of school buildings.
Quebec: Ministry Grants and Subsidies
In Quebec, the Ministère de l'Éducation manages financial resources in the education system, overseeing budget planning and authorising loans and subsidies to educational institutions. Funds are distributed equitably to school service centres and school boards through Ministry grants, calculated as follows: Basic amount per school service centre or board + [Amount per student × School enrolment weighted].
For 2023/24, the basic amount was CAD 260,589 per school service centre or board. The amount per student was CAD 868.61 for schools with more than 1,000 students and CAD 1,129.93 for smaller schools. Subsidies are provided to boards unable to meet their needs through an equalisation grant. Additional funds support students with disabilities, and small schools in remote or small communities.
British Columbia: Formula-Based Grants
In British Columbia, the province determines the total grant funding for public education annually and allocates it to 60 Boards of Education using a funding formula, which is revised each year. Funds are primarily distributed through operating grants (75%), with additional allocations for “unique students” (18%) and “unique districts” (7%). “Unique districts” take into account community size, enrolment rate, rural and climate factors, sparseness, student location, and salary differentials. “Unique students” include students with disabilities, English language learners, French language learners, adult education participants, and Indigenous students. The province also targets additional funding to support programmes such as school meals and trauma counselling.
2. Education resources to schools
Each province and territory uses distinct mechanisms to allocate resources to schools. Typically, the province distributes funds to a smaller government unit, such as a municipality or school district, which then allocates the funds to individual schools.
Alberta: School boards are primarily funded by provincial transfers and the provincial education property tax fund. Property taxes are collected at the municipal level, centralised, and redistributed provincially. Funding amounts are determined using a formula.
British-Colombia: Provincial transfers fund school districts, which then distribute funds to schools. A portion of provincial transfer funds comes from a dedicated provincial property tax (the school tax), levied by municipalities but centralised at the provincial level.
Manitoba: Provincial transfers are directed to municipalities, which then distribute funds to school boards. The province levies a property tax specifically dedicated to education (Education Support Levy – ESL). Amounts collected by municipalities are paid directly to the school boards.
New-Brunswick: Provincial transfers fund school districts, which distribute funds to schools. The province levies a provincial property tax that is not dedicated to education. Funds are distributed according to a formula.
Newfoundland and Labrador: School boards are funded through provincial transfers. There are no school property taxes in the province.
Northwest Territories: School funding primarily comes from the federal government. Funds are allocated to regional education bodies according to a formula that considers student numbers, the northern cost index (location factor), consumer price increases, and targeted funding. Schools also receive additional funds for special education, Indigenous languages and education, and school meals.
Nova Scotia: Education is funded through provincial transfers and a provincial property tax (Mandatory Education Tax). The property tax is imposed by municipalities and distributed directly to school boards using a formula.
Ontario: School board districts are responsible for distributing funds to schools. School property taxes are uniform across the province, collected by municipalities, and paid to the school boards. Schools may receive additional funding for special education, French as a first and second language, mental health programmes, and higher amounts for outlying and rural schools.
Prince Edward Island (PEI): Provincial transfers fund school administrative entities, which then distribute funds to schools. PEI levies a provincial property tax, which is not dedicated to schools.
Quebec: Education is primarily financed through provincial transfers. School boards may supplement funding via a school property tax, subject to equalisation by the Quebec government. Expenses are categorised as operating expenses or capital expenditures. Funds are distributed equitably to schools, with consideration for each school’s needs.
Saskatchewan: Provincial transfers and property taxes fund district school boards. Municipalities collect property taxes and transfer them to school boards, which then allocate funds to schools.
Indigenous Education Funding
The base funding programme administered by Indigenous Services Canada (ISC) considers remoteness, school size, language, and socio-economic conditions. In some cases, ISC delivers funds and services directly to federal schools. Schools receive $1,500 per student per year to support language and culture programming. Additional targeted funds are available, including the High-Cost Special Education Programme, which provides resources for personnel, adaptive materials, and other support services, as well as funding for menstrual products for eligible students. The base funding programme for First Nations kindergarten to grade 12 education started on April 1, 2019. This initiative was announced on January 21, 2019, and introduced formula-based regional funding models that account for factors like remoteness, school size, language, and socio-economic conditions, replacing previous proposal-based programs.
3. Education resources to students and families
Several provinces and territories provide annual resources or one-time payments to support students and families with learning and related expenses.
In Ontario, families received a one-time Catch Up Payment to address learning gaps caused by COVID-19. Each student from kindergarten to Grade 12 was granted CAD 200, while students with special education needs received CAD 250, up to age 21.
In British Columbia, parents were eligible for a one-time CAD 250 tax credit in 2017, administered by the provincial Ministry of Education. Prince Edward Island offered free school supplies to all students in kindergarten through Grade 9 in the public school system for the 2022–23 school year, provided by the Department of Education and Early Years.
In Yukon, students participating in the home education programme may apply for reimbursement of up to CAD 1,200 for instructional materials, including resource materials, workbooks, equipment, entrance fees for field trips, and other related costs.
4. Social policies and family support programmes
At a national level, the Pathways to Education programme helps provide mentorship, tutoring, and social support to at-risk high school students across the nation. The programme is partnered with four provinces and the government of Canada. 67% of its funds come from government sources, including grants from Employment and Social Development Canada. Support also includes short- and long-term financial help, including lunch vouchers and transit passes.
Federal Child Benefit Programmes
At the federal level, the Canada Revenue Agency (CRA) administers the Canada Child Benefit (CCB), a tax-free monthly payment to eligible families to help cover the cost of raising children under 18. It was adopted in 2016. The amount received depends on the number and age of children and the family’s adjusted family net income (AFNI). Families with an AFNI below CAD 36,502 receive the maximum payment of CAD 7,787 per year for children under 6 and CAD 6,570 per year for children aged 6 to 17. The CCB may also include the Child Disability Benefit (CDB) and related provincial or territorial programmes. The CDB provides up to CAD 3,322 per year for each child eligible for the Disability Tax Credit (DTC).
The Canada Child Benefit (CCB) was introduced in July 2016 to replace the existing Canada Child Tax Benefit (including the National Child Benefit Supplement) and the Universal Child Care Benefit with a single, larger, tax‑free, income‑tested monthly payment for families with children under 18. This reform simplified the federal child benefit system by combining an income‑tested program and a universal but taxable payment into one consolidated support aimed more heavily at low‑ and middle‑income families.
Provincial and Territorial Child Benefits
Provincial and territorial governments provide additional child benefit programmes, often administered by the CRA. Eligibility is determined automatically based on CCB information, and payments are added to the federal benefit. These programmes are fully funded by the respective provinces and territories and include benefits such as the Alberta Child and Family Benefit, BC Family Benefit, New Brunswick Child Tax Benefit, Newfoundland and Labrador Child Benefit, Northwest Territories Child Benefit, Nova Scotia Child Benefit, Nunavut Child Benefit, Ontario Child Benefit, Prince Edward Island Child Benefit, and Yukon Child Benefit.
Within these programmes, some territories and provinces provide additional supports. In the Northwest Territories, the Northwest Territories Child Benefit (NTCB) and the Northwest Territories Cost of Living Offset provide families with a small additional amount on top of the CCB. For example, a family with a low AFNI and one child aged 6 to 17 receives an additional CAD 54.33 per month.
In Ontario, the Ontario Child Benefit (OCB) is provided to low- to moderate-income families to assist with child-rearing costs. Families receive up to CAD 140 per month for each child, in addition to the federal CCB.
In Québec, eligible families automatically receive the Family Allowance, administered by Retraite Québec. The amount of payments is determined by the number of children, family income, and conjugal status. Families with children aged 4 to 16 receive an annual school supplies supplement; for the 2025–26 school year, this amounted to CAD 124. Families with children with disabilities may also qualify for the Supplement for Handicapped Children or the Supplement for Handicapped Children Requiring Exceptional Care, receiving CAD 236 per month for the first child and either CAD 1,191 or CAD 792 per month for the second, depending on the child’s condition.
Other provinces and territories provide school-related supplements, which are not funded by the Ministry of Education. In New Brunswick, families receive a school supplement added to the New Brunswick Child Tax Benefit (NBCTB). In British Columbia, the School Start-up Supplement is provided through the BC Employment and Assistance (BCEA) Program, administered by the Ministry of Social Development and Poverty Reduction. This supplement is available to recipients of income assistance, disability assistance, and hardship assistance. Children aged 5 to 11 receive CAD 120 per year, while those aged 12 to 18 receive CAD 210 per year.
5. School meal programmes
School meal programmes are developed at the provincial and territorial level and implemented at district and municipal levels. In a few remote schools across the three territories, meals are provided year-round. Most programmes are “universally accessible,” meaning all students are welcome, but they are not necessarily “universal participation,” as not all students take part. In some provinces, such as Prince Edward Island, lunch programmes operate on a “pay-what-you-can” (PWYC) model. Nutritionists and dietitians provide menu support for these programmes.
The National School Food Policy promotes the availability of nutritious foods in an inclusive, non-stigmatising environment. The programme helps schools connect with local food organisations, and all food served aligns with the national Canada Food Guide, which provides healthy eating recommendations. The policy aims to support students in developing healthful food-related behaviours, attitudes, knowledge, and skills. Its long-term goal is universal access; in the meantime, the programme focuses on expanding existing school food initiatives while prioritising communities and populations most affected by food insecurity.
In Quebec, le Collectif québécois pour une saine alimentation scolaire is a coalition of member organisations that share school food information and resources, collaborating on advocacy, research, and pilot projects.
In the Northwest Territories, the Healthy Food for Learning programme provides children and youth with healthy and nutritious food to support their physical, emotional, and social development and wellbeing. Funding for schools is adjusted based on school location and student numbers.
Nova Scotia's pay-what-you-can School Lunch Programme stands out as the most significant in terms of provincial spending and beneficiaries, with an $80 million annual budget in 2025-26 serving over 104,000 students across 334 elementary, middle, and junior high schools—representing the highest per capita investment at $3.30 per student daily among provinces. This policy addresses child food insecurity through flexible payments (full $6.50, partial, or none), improved menus, and expansion funded partly by federal support, prioritising access for low-income families while enhancing learning readiness. It started in the 2024-25 school year, with initial lunches served from early October 2024 across phase-one schools. Quebec's programme follows closely with $65.1 million provincially in 2024-25 benefiting 711,315 students in 2,232 schools, plus $65.2 million federal aid.
This profile was reviewed by Christian Belzil, Research Professor at École Polytechnique (France) and Professor of Econometrics at ENSAE.
