Each year, the Government of Canada prepares a budget that determines how federal funds are allocated across all areas of public life, including arts and culture. The Canadian Crafts Federation/Fédération canadienne des métiers d’art (CCF/FCMA) participates in pre-budget consultations annually, submitting our formal recommendations to the Minister of Finance on behalf of the Canadian craft sector. 

Our pre-budget submission highlights the unique challenges currently facing craftspeople and arts service organizations across the country, while offering practical solutions to strengthen the sector. These recommendations aim to provide financial stability for artists, ensure fair access to federal support, and recognize the significant role craft plays in Canada’s economy and culture.

Here are our key recommendations for the 2026 federal budget:

1. Review Federal Funding Programs

Many federal funding programs are not tailored to the craft sector. Fast-paced application processes, restrictions on sole proprietorships, and the need to stack multiple levels of government funding often leave craftspeople and not-for-profit organizations at a disadvantage.

At Canadian Heritage, for example, there are currently no funding opportunities dedicated specifically to visual arts and craft. While other disciplines receive targeted support through funds such as the Canada Media Fund or the Canada Book Fund, craftspeople must compete for limited, broad-based project funding.

We recommend a comprehensive review of funding timelines and eligibility criteria, along with the creation of two new streams dedicated to visual arts and craft:

• Operational funding for organizations that advance, promote, and innovate in craft and visual arts.
• Mentorship and marketing funding for sole proprietors, who are currently excluded from many opportunities.

2. Increase Core Funding for Arts Service Organizations (ASOs)

Arts service organizations (ASOs), including provincial and territorial craft councils, play a crucial role in supporting artists and communities. Yet many struggle with unstable, project-based funding that leads to staff turnover and reduced capacity. Increased core funding would allow ASOs to retain staff and continue serving their members effectively.

3. Implement an Employment Insurance Program for Arts Workers

Self-employed artists often lack access to social protections. The Strengthening the Status of the Artist in Canada report by the Standing Committee on Canadian Heritage (2023) highlighted the need for fair remuneration for artists. We propose a tailored Employment Insurance programme for arts and culture workers, modelled on existing provisions for self-employed workers in other fields, to provide greater financial stability during periods of inactivity.

4. Establish a Federal Basic Income Guarantee

Financial precarity is a pressing issue in the arts. A Basic Income Guarantee, modelled on the Canada Emergency Response Benefit, would reduce poverty, stabilize incomes, and simplify access to support.

5. Invest at Least 1% of Federal Spending in Arts, Culture, and Heritage

We support the Canadian Arts Coalition’s recommendation that the Government of Canada allocate at least 1% of its overall spending to arts, culture, and heritage. For 2026, this means a permanent increase of $270 million, including:

• $140 million for the Canada Council for the Arts
• $130 million for the Department of Canadian Heritage

6. Remove Trade Barriers for Craft

Craft-based businesses are disproportionately affected by tariffs and trade costs. We recommend removing tariffs on handmade, low-volume Canadian visual art and craft objects, exempting small businesses from retaliatory raw material duties, and investing in targeted business development and export programmes.

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Why It Matters

In 2023, the craft sector contributed approximately $2.77 B to Canada’s GDP and supported 29,991 jobs. In 2021, craft accounted for $4.53 B in cultural exports. According to Statistics Canada’s 2024 National Culture Indicators, visual arts products generated $12.4 B in revenue, with craft dominating at $9.4 B (76% of the total), or about one-third of all arts product revenues. These figures highlight the significant economic and cultural role of craft in Canada.

By implementing these recommendations, the Government of Canada can ensure the sustainability of the craft sector, strengthen support for arts workers, and invest in the future of Canadian culture.