Why the 2026 City Budget matters for affordability and food security

The City of Toronto is developing Budget 2026, a pivotal moment when key investment decisions will be made that affect affordability and residents’ well-being across the city.

On January 21, Daily Bread Food Bank CEO Neil Hetherington deputed to the City’s Budget Committee to highlight the urgent need for sustained action on hunger, housing, and affordability, and to share recommendations for how the 2026 Budget can address these challenges.

Food bank visits have reached a record 4.1 million, reflecting a crisis that is no longer temporary. As our Who’s Hungry 2025 survey shows, people are relying on food banks more often and for longer periods of time.

Food bank use is a visible symptom of deeper systemic issues: Inadequate income supports, insufficient wages, precarious employment, and unaffordable housing continue to drive hunger across Toronto.

The Budget presents a key opportunity to address the root causes of hunger and poverty through key investments and programs.

What the City is proposing

Overall, Budget 2026 takes important steps forward, with enhanced investments in several initiatives that are essential to improving affordability and well-being of Torontonians.

The City has proposed $6 million in Budget 2026 for the Student Nutrition Program, expanding its reach to an additional 155 school communities. With children now representing one in four food bank clients in Toronto, sustained investment in a Universal School Food Program is essential to ensuring every child has access to healthy meals at school.

The Budget also includes additional investments in renter protection programs — including the Rent Bank, Tenant Support Program, and RentSafeTO — which play a vital role in maintaining housing stability and safe, livable homes for lower-income renters.

Key recommendations for Budget 2026

We are pleased to see these investments, but it is important to build on them by taking the following actions:

• Protecting existing affordable housing: The City has made real progress in expanding affordable housing, but protecting existing stock is equally critical. Since 2021, the Multi-Unit Residential Acquisition (MURA) Program has enabled community housing providers to acquire roughly 34 properties. A significant and sustained increase to MURA’s annual budget—currently averaging $33 million—would enable larger, faster acquisitions, helping to preserve hundreds more affordable rental homes and avoid the far higher costs of replacing housing once it is lost.

• Expanding City-owned space for food programs: Community food programs play a vital role in ensuring Torontonians can access food. Growing demand, however, is placing significant strain on these programs, many of which operate from leased or rented spaces that are insufficient to meet need. The City should increase the availability and accessibility of municipally owned space for community-based food programs by offering longer-term, affordable space agreements; reducing associated City fees; simplifying permit processes and extending hours of operation; providing priority access to City-owned spaces for food security organizations; and leveraging community benefits agreements to secure additional space. 

• Continued and enhanced funding for renter protection programs: It is encouraging to see an additional $2.6 million allocated to the Rent Bank and the proposal to add more bylaw officers in Budget 2026. With renter households now representing nearly half of all Toronto households, a growing homelessness crisis, and an aging rental stock, the City must further increase investments in renter protections and eviction prevention programs. To ensure tenants have access to safe and habitable homes, the City should also continue strengthening the RentSafeTO program.

• Ensuring every child has access to a healthy meal at school: The City is advancing its vision of a Universal School Food Program, including plans to provide a morning meal in all Toronto schools by 2026–27 and a universal lunch program by 2030. The proposed additional $6 million in Budget 2026 will benefit approximately 62,000 more students. We also urge the City to continue advocating for increased federal and provincial investment to ensure every child has access to a nutritious meal at school.

The Mayor will release her proposed Budget on February 1, followed by a City Council meeting to consider the Budget on February 10.

Looking ahead to Budget 2026

Last year, City Council declared food insecurity an emergency, issuing a clear call to action to spur change, mobilize communities, and demand meaningful action from the provincial and federal governments. As the City finalizes Budget 2026, Daily Bread Food Bank will continue advocating at all levels of government, working alongside partners and decision-makers to build a Toronto where everyone can thrive and no one goes hungry.

Tell your elected officials to take action against hunger and poverty by sending them an email.