Budget sets $176.3M to launch online safety commission

Budget 2026 proposes $176.3 million over five years, starting in 2026-27, and $29.3 million a year after that to set up the Digital Safety and Data Protection Commission of Canada, the federal budget document says.

The money goes to Canadian Heritage. The budget says the commission would enforce the Safe Social Media Act, ensure compliance and work toward “a safer online space for Canadians.” Averaged over the five years, the funding works out to about $35 million a year before it settles at the lower ongoing amount.

The act would require social media services to assess and mitigate risks tied to seven categories of harmful content, label synthetically generated content and give users tools to flag harmful content and block other users. The budget says AI chatbot services would face specific requirements aimed at reducing harmful content and behaviour, and at making reporting thresholds in crisis situations more transparent.

BetaKit reported Friday that the commission would also oversee private-sector privacy rules under the government’s privacy bill, taking that role from the Office of the Privacy Commissioner. The outlet said AI Minister Evan Solomon has described it as “a regulator with teeth,” able to issue binding orders, compel audits and fine companies up to $10 million or three per cent of global revenue, whichever is higher.

The budget gives no timeline for when the commission would start work. BetaKit said the budget indicated funding would begin flowing this year and next. The government has previously said it could take up to 18 months to get the commission running.

The budget also frames the spending as a measure for young people. It cites a 2022 Statistics Canada survey that found 74 per cent of youth reported seeing several types of harmful content online at least once in the past year, compared with 51 per cent of the overall population.

The legislation has not passed. BetaKit said parts of the tech community and academia have criticized its broad mandate, its ability to deliver on age verification and youth safety, and its potential to increase surveillance and affect privacy rights.

The commission follows the bill that would bar children under 16 from holding social media accounts, which we covered in Bill C-34 would ban under-16s from social media accounts. Culture Minister Marc Miller has also said he is open to extending the rules to gaming platforms, as we reported in Miller open to covering gaming platforms in Bill C-34. For the wider budget picture, see our Budget 2026 explainer, and for privacy-related legislation see Privacy watchdog urges Senate to amend lawful access bill.

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Sources: Budget 2026, chapter 5; BetaKit.