Health, housing, services form key budget priorities as B.C. juggles tariff impacts

Amid the overhanging threat of U.S President Donald Trump’s tariffs and the impact they could have on B.C.’s economy, the provincial government says it’s still focused on making core investments to support British Columbians on the issues that affect their day-to-day lives.

“When faced with big challenges, there are those who might say we should retreat and respond by cutting spending on the public services that people rely on,” Finance Minister Brenda Bailey said Tuesday.

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“But we know that this would only weaken the services we all need and drive up costs for people when they can least afford it. 

These challenging and uncertain times invite us to reflect on what matters most.”

Bailey said the province will focus on connecting more people with a family doctor; building more schools for children in B.C.; reducing costs for families; and making our communities safer.

Budget 2025 includes capital funding of $45.9 billion dollars over the next three years.

“This is anticipated to support 180,000 good-paying direct and indirect jobs over three years,” the province said.

That includes funding for new schools, including the long-awaited Olympic Village elementary school in downtown Vancouver, and other major infrastructure projects like the new hospital in Surrey.

However, Bailey cautioned that the province’s plans still hang in the balance of how Trump’s tariffs will actually manifest in reality.

B.C. is operating under the assumption that the current tariffs of 25 per cent on all goods except energy, which will be levied at 10 per cent, will be ongoing until 2029. 

But Bailey said that if the federal response changes, either in retaliatory measures or in supports, or if the U.S. decides to stack additional tariffs, our fiscal outlook could be significantly worse than currently projected.

And that will inevitably impact B.C.’s ability to make good on its commitments over the next few years.

Health

Budget 2025 sets aside $4.2 billion over the next three years to improve access to health care for British Columbians. 

Of the money set aside, $443 million of that is earmarked towards “strengthening primary care” and connecting more residents with family doctors and nurse practitioners.

There is capital funding to the tune of $15.5 billion to support the construction of new hospitals and the renovations of existing facilities.

The province says that includes the new hospital and cancer care centre in Surrey; the new St. Paul’s Hospital in Vancouver; hospital redevelopment projects in Richmond, Burnaby, and New Westminster; and projects to redevelop or replace long term care homes in about a dozen communities across the province.

The former Mental Health and Addictions Ministry has been amalgamated into the wider Ministry of Health, a change made after last year’s provincial election.

This year’s budget adds $500 million more over the fiscal plan to support ongoing addictions treatment and recovery programs that were established in previous budgets.

There are no new measures funded on the mental health and addictions file, including a promised move to involuntary care models for some people experiencing mental health or addictions who may pose a risk to others or themselves.

“The Province continues work to support people with concurrent mental-health and addiction challenges, including secure and dignified care for people under the Mental Health Act, as well as secure treatment within the BC Corrections system,” the provincial government said.

Education

The capital plan sets aside $6.6 billion over the next three years to build, renovate, and seismically upgrade schools and playgrounds. Some of the funded projects include the new Smith Secondary School in Langley, slated to be completed in 2027; the replacement of Mission Senior Secondary School, expected to be completed in 2028; and the new George Pringle Secondary School in the Central Okanagan School District.

There is $151 million set aside for the new Olympic Village elementary school in Vancouver. That’s a project the NDP has promised — and made an election issue — since at least the 2018 provincial election. Construction on the long-awaited school is expected to wrap up in 2029 and will have the capacity for 630 students.

Meanwhile, there is $370 million earmarked over the fiscal plan to “support Kindergarten to Grade 12 students”. That will include additional funding to the Classroom Enhancement Fund to support new teachers, including special education teachers and teacher psychologists and counsellors.

Housing

Starting Jan. 1, 2026, the NDP is raising the Speculation and Vacancy Tax to three per cent for foreign owners (up from two per cent) and one per cent for citizens and permanent residents (up from 0.5 per cent). 

The government says this is to ensure residential properties support homes for people rather than investment portfolios.

It expects to earn $47 million in revenue from this tax increase during the 2027-28 fiscal year; Bailey said those additional earnings will be reinvested back into housing in the 59 regions where the tax applies.

The province is putting another $318 million over the next three years into B.C. Builds, a program announced last year that provides low-cost financing to eligible construction projects providing housing for middle-income people.

The NDP says six projects under the program are already under construction, and another 11 are expected to get underway this year.

Those are expected to provide 1,400 homes in communities across the province.

There is another $375 million set aside to increase rental supplements through B.C. Housing. The province is raising the income threshold for the Rental Assistance Supplement from $40,000 a year to $60,000. Average supplements will go up from $400 to $700 monthly. 

Bailey says the increased threshold means the number of families eligible for the supplement will nearly double to about 6,000.

In the meantime, the province says an increase to the income threshold for the Shelter Aid for Elderly Renters program means an additional 1,600 seniors will benefit from that supplement. The average supplement is expected to increase from $261 to $337 monthly.

Public safety

The budget sets out funding to improve timely access to justice through virtual bail hearings in communities across B.C.

It also includes provisions to expand capacity at the B.C. Supreme Court, and to improve security in the face of concerns around safety at the Vancouver Provincial Court.

The province is introducing a new pilot program to target robbery, shoplifting, theft, and property-related concerns. Budget 2025 says the Community Safety and Targeted Enforcement Program pilot will provide police with “enhanced tools” to combat that sort of crime and tackle street disorder.

There’s also increased funding for the Justice Institute of B.C. to increase the capacity of its police training program.

Jobs

Unemployment in B.C. hit 6.0 per cent in January.

While Bailey said that’s among the lowest in Canada, provincial forecasts show the rate is expected to rise into next year to 6.7 per cent.

And the tariff situation means that it could be substantively worse than that.

The Budget 2025 tariff scenario suggests B.C. could lose 45,000 jobs by 2029 under the current tariffs. An earlier scenario calculated with higher tariffs on energy had suggested job losses could hit 124,000 by 2028 if no federal assistance was granted.

Bailey said they’re operating under the assumption that the revenue from federal counter-tariffs will in fact go towards supporting businesses affected by the trade war.

“With continued uncertainty from U.S. tariff threats, British Columbians are increasingly concerned about the security of their jobs and the economic sustainability of their communities,” the provincial government said.

The government plans to mitigate those concerns via investments in B.C. businesses totalling some $172 million.

It said it has expedited permit approvals in mining and found “efficiencies” in other permitting processes.

The province has accelerated 18 natural resource projects based in B.C. in response to the tariff threat.

Transportation

Budget 2025 includes $15.9 billion in capital funding over the next three years for transportation and transit projects, most of which are underway and set to be completed in the next few years.

That includes $6 billion for the Surrey Langley SkyTrain project; $4.2 billion for the George Massey Tunnel replacement; and $3 billion for the Broadway Subway project.

There is also $538 million set aside for repairs to critical road infrastructure in the Cariboo region that’s been damaged by landslides.

The budget presentation didn’t include direct mention of additional operative funding for TransLink. The TransLink mayors’ council has warned that without a significant cash injection, the transit agency will be forced to make service cuts beginning next year. 

Rebates, incentives, and tax measures

The province is increasing monthly payments for the Rental Assistance Supplement and Shelter Aid for Elderly Renters programs, along with increasing income thresholds to make more residents eligible.

In the meantime, the NDP is holding off on removing the provincial carbon tax until Ottawa removes the requirement for carbon pricing across Canada. Premier David Eby had indicated he would look at removing the tax during last year’s provincial election.

There’s a federally mandated increase to the tax scheduled for April 1.

Government says it plans to refund the increased revenue from that increase back to residents through the climate action tax credit.

There was no mention of the $1,000 grocery rebate in the budget, which the NDP had promised to send out to British Columbians as part of an election promise. Last month, the province said the threat of US tariffs had made it impossible to keep that promise.

However, Bailey said higher projected income for ICBC means the government will be able to provide a one-time rebate to personal and commercial drivers of $110.

That is set to cost the government $440 million this fiscal year, with payments expected to go out April. In a statement on Thursday, ICBC says CityNews the rebates will begin to go out mid-March through the end of May.