Canada Post is poised to gain new authority to set its own postage rates without requiring specific Governor-in-Council (Cabinet) approval, under amendments included in the federal budget legislation tabled in November 2025.
Until now, the Canada Post Corporation Act required the Crown corporation to obtain Cabinet approval to change regulated letter-mail rates — a process Canada Post has long described as “lengthy and cumbersome.”
The new measure aims to modernize and speed up the rate-setting system while improving the postal service’s financial sustainability. Canada Post has recorded significant losses in recent years as letter-mail volumes continue to fall.
For most of its other services — including commercial pricing and parcel delivery — the corporation already had greater flexibility to adjust rates. Letter-mail, however, remains a core regulated product and a major source of revenue.
The change is part of a broader federal effort to transform Canada Post’s operations in response to the decline of traditional mail and the continued growth of e-commerce. Ottawa has also highlighted the need for the postal service to adapt its business model to remain financially viable while maintaining reliable service across the country.
Specific details of the new pricing framework are expected to appear in the Budget Implementation Act, 2025, which will amend the Canada Post Corporation Act and outline the parameters for future rate-setting authority.