What to know
- The federal government has committed $60 million over four years to renew the 2SLGBTQI+ Action Plan, alongside $15 million in ongoing annual funding, beginning in 2027-28.
- The investment follows months of advocacy by more than 40 Queer and Trans-serving organizations, which called for $450 million over five years to strengthen community services.
- Organizations welcome the renewed commitment but say the combined $25.9 million in ongoing annual funding remains below their $90-million annual target.
- Advocates are calling for greater investment in mental health services, affordable housing, grassroots organizations, refugee support and international 2SLGBTQIA+ human rights initiatives.
Following a strong advocacy campaign by Queer and Trans serving organizations across the country, the federal government has committed $60 million over four years to renew the 2SLGBTQI+ Action Plan, alongside $15 million in ongoing annual funding. But Queer and Trans advocates say there is still more work to be done to address the needs of their communities.
Announced as part of the federal government’s 2026 budget, the funding will support community-based projects, public awareness initiatives, research and the 2SLGBTQI+ Secretariat. The new investment will begin in 2027-28, extending federal support beyond the Action Plan’s original March 2027 end date.
The announcement follows months of advocacy from organizations across Canada, which gathered on Parliament Hill in October for what organizers called the largest Queer Day of Action in Canadian history. The movement saw more than 40 organizations, including Queer Momentum, The 519, Rainbow Railroad, Dignity Network Canada and Pride at Work, call on the federal government to invest $450 million over five years to strengthen 2SLGBTQIA+ organizations and services.
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For Fae Johnstone, executive director of Queer Momentum, the budget announcement represents a significant outcome of that collective organizing.
“I’m thrilled. Our ecosystem came together in unity when the deck was stacked against us,” Johnstone told Queer & Now.
“When we were being told that renewal of the action plan was unlikely, if not impossible, in this budget, we organized anyway. We organized, and we won,” she continued, describing the investment as a historic moment giving 2SLGBTQIA+ ecosystems a degree of stability that they have never before experienced.
A significant investment, but not the full amount advocates wanted
The new $60-million commitment is separate from the $54.6 million announced in Budget 2025, which included $10.9 million in ongoing annual funding to build the capacity of 2SLGBTQI+ community organizations and networks and support Pride safety. Combined, the two budget commitments represent $25.9 million in ongoing annual federal funding for 2SLGBTQI+ communities.
Johnstone says that while the new funding provides organizations with greater stability and predictability, it remains considerably below what advocates had asked the government to invest. The coalition had called for $90 million annually, arguing that increased funding is needed to respond to rising hate, economic pressures and the growing demands placed on community organizations.
“I keep saying we’re celebrating in context, and that context is key,” Johnstone said. “We know that the financial landscape is rough right now, and in that context, we perceived the announcement as a historic victory for our movements. But of course, it is far from enough.”
Johnstone explained that the $25.9 million in combined ongoing funding provides a foundation, but doesn’t address the full range of needs within 2SLGBTQIA+ communities.
“Until we see that $90 million a year investment that includes support for Queer and Trans refugees, for Queer and Trans workers, entrepreneurs, and small businesses, for Queer and Trans people living with HIV, until we see that response at scale, we will be unsatisfied,” she said.
Complex needs unmet, mental health support needed
Several organizations are welcoming the budget commitment, while calling for the federal government’s investment to be accompanied by a broader commitment to supporting 2SLGBTQIA+ people, both in Canada and internationally.
The 519, a Toronto-based organization serving the Queer and Trans communities, says that it sees promise in the budget’s investments in affordable and non-market housing, supportive and transitional housing, and homelessness prevention, calling them essential investments for our communities. The organization said that while these commitments deserve recognition, they do not fully address the complex needs of our communities.
The 519 explained that every day their team sees 2SLGBTQIA+ community members facing overlapping pressures related to poverty, discrimination, housing insecurity and displacement.
“Investments in our communities must be able to reach people facing the most significant barriers, and community organizations must have the sustained resources to support them,” The 519 told Queer & Now.
It also expressed that all commitments made by the government require clear implementation plans, timely funding, and accountability for who benefits.
“We call for firm agreements at all levels of government to deliver affordable homes and sustain the services attached to them, with 2SLGBTQ+ communities involved in their design,” the organization shared, adding that homes must be accessible at all income levels, and services must be safe and accessible for 2SLGBTQ+ people.
“Funding construction must be matched by reliable funding for operations, and the supporting people need to remain housed,” The 519 continued. “Community organizations need accessible, multi-year funding to cover the cost of delivering services, including core operations, as well as funding that can reach smaller grassroots groups.”
Meanwhile, LGBT YouthLine executive director Lauren Pragg says their organization welcomes the investment, but hopes to see annual funding reach $90 million in the future. As a provider of frontline mental health support, Pragg also stressed the need for greater investment in mental health services for Queer and Trans youth.
“Overall, we want to see a holistic approach to support for our communities throughout all governmental departments,” Pragg told Queer & Now. “2SLGBTQIA+ people live whole lives and engage with the government on many levels, including immigration, housing, employment, education, and healthcare.”
“Mental health across the country is still chronically underfunded and needs serious investment to avoid larger and more serious social and material impacts in the future. We look forward to partnering with the government to continue supporting 2SLGBTQIA+ youth for years to come.”
Organizations say gaps remain for Queer and Trans newcomers, international communities
Several organizations are also raising concerns about a lack of funding for Queer and Trans newcomers and international communities. Rainbow Railroad, an organization which has worked to support 2SLGBTQIA+ people facing persecution around the world for 20 years, welcomed the budget announcement, but raised concerns about the absence of restored international assistance funding.
In a statement posted on its website, Rainbow Railroad highlighted that the international assistance funding cut in Budget 2025 was not replenished in the latest budget, despite growing threats to 2SLGBTQIA+ communities around the world. It also pointed to concerns about federal immigration legislation and changes to Canada’s refugee resettlement targets, arguing that the government needs to do more to ensure people fleeing persecution can find safety in Canada.
“Long-term sustained investment is an important first step towards advancing 2SLGBTQIA+ rights, but it is only the first step,” Rainbow Railroad said.
The concerns raised by Rainbow Railroad are also echoed by The 519.
“We have significant concerns about the failure to restore and strengthen international assistance. For Queer and Trans people facing persecution, humanitarian assistance and support for local human rights organizations can be a lifeline,” The 519 shared.
“Canada’s commitment to equality must include people living in places where their identities put their freedom and their lives at risk.”
The organization added that the federal government has a responsibility to fund protection abroad, provide meaningful pathways to resettlement, and to ensure people can seek asylum and access support in Canada.
“These responsibilities are all interconnected. The people affected are members of our communities, including the families, partners and loved ones of people already in Canada.”
While both organizations voiced optimism at the budget, they are calling for several supports for Queer and Trans newcomers and refugees. Rainbow Railroad’s call includes reversing cuts to refugee resettlement and support programs, doubling the Government-Assisted Refugee Partnership for LGBTQI+ people to meet the growing demand for safety, and increasing support to the Rainbow Refugee Assistance Partnership. Additionally, they are calling for an increase to the LGBTQI+ International Assistance Program to $20 million per year over five years, and to continue to expand the Federal 2SLGBTQIA+ Action Plan.
Meanwhile, The 519 is also calling for Canada to reverse reductions in assistance, and on an international scale strengthen support for organizations supporting 2SLGBTQI+ people facing persecution, and expand safe pathways to protection.
“People seeking refuge also need access to housing, health care, legal assistance, and settlement support once they arrive,” The 519 shared. “While we welcome the renewed action plan, and the signal of support for 2SLGBTQ+ communities, the measure of this budget will be whether people can find safety and build a future – and whether the organizations they turn to have the resources to stand alongside them.”
Similar concerns are also being highlighted by Ten Oaks Project, which facilitates camp programming for 2SLGBTQIA+ youth geared around support, acceptance, and empowering opportunities for self-expression. Executive Director Kymani Montgomery called on Canada to step up to represent hope during these trying times for Queer and Trans people worldwide.
“We need the federal government to make more commitments regarding global issues for 2SLGBTQIA+ people; Canada needs to be a beacon for hope,” Montgomery shared. “Our communities, our families, and our kids are suffering across the globe, and many are looking to Canada as an example for leadership.”
Turning the commitment into action
The 519 also emphasized the need for sustained operational funding for community organizations, arguing that short-term project grants are not enough to maintain essential services.
“Essential services require experienced staff, accessible space, and stable operations through long-term funding support,” The 519 said, calling for funding to reach smaller grassroots groups and for 2SLGBTQ+ communities to be involved in designing the support services intended to serve them.
The Enchanté Network, Canada’s national network of 2SLGBTQI+ organizations, also welcomed the government’s commitment, describing the consecutive budget investments as an opportunity to move away from cycles of short-term funding and financial uncertainty. However, executive director Tyler Boyce says the next phase of the Action Plan needs to give community organizations greater influence over how funding is distributed and how solutions are developed.
That includes reducing barriers for smaller and historically underfunded organizations, moving beyond consultation toward meaningful partnerships with community groups, and ensuring funding builds long-term organizational capacity. Boyce also echoed concerns about Canada’s international human rights leadership, saying the latest announcement did not explicitly address the country’s role in supporting Queer and Trans communities abroad.
Ultimately, he says, the success of the renewed Action Plan should be measured by its impact on the organizations and people it is intended to support.
“The measure of success is not simply how much the government invests, but how much stronger, more independent and more empowered our communities become as a result,” Boyce said.
For Johnstone, the budget fight has also demonstrated what can happen when organizations across the country organize around a shared demand.
She described the coalition’s efforts as a proof of concept for future advocacy, saying she had never seen the movement come together with such coordination and unity.
“I think that we have a coalition now that can secure future victories for our communities in the years and indeed the decades ahead,” she said.
While the renewed funding provides a degree of certainty beyond the Action Plan’s original expiry date, advocates say their work is far from over. The next challenge will be ensuring the money reaches the communities and organizations that need it, while continuing to push the federal government toward the larger investment they say is necessary.
