Mr. Speaker, our government has been relentlessly focused on bringing down costs for Canadians. Broadly speaking, we are doing this in two ways. Through budget 2025 we laid the groundwork to unlock generational investments in Canadian businesses, workers and resources to build a stronger and more resilient Canadian economy. While we implement those long-term and strategic initiatives, we are also putting more money in the pockets of Canadians through targeted and common-sense initiatives.
By ensuring that Canadian workers and families keep more of their hard-earned money, we are empowering Canadians to better support their families, invest in their communities and build the future they want. Just yesterday, for example, the Prime Minister and the Minister of Finance announced new measures to make groceries and other essentials more affordable.
In order to bring down these costs for Canadians, Canada's new government is introducing the Canada groceries and essentials benefit. Formerly known as the GST credit, we are increasing its amount by 25% over the next five years, beginning in July 2026. On top of that we are providing a one-time payment equivalent to a 50% increase this year. Combined, this means that a family of four will receive up to $1,890 this year and about $1,400 a year in the next four years. A single person will receive up to $950 this year and about $700 a year for the next four years. I am proud to say that the new Canada groceries and essentials benefit will provide additional significant support for more than 12 million Canadians.
What is more, the government is also setting aside $500 million from the strategic response fund to help businesses address the cost of supply chain disruptions without passing those costs on to Canadians at the checkout line. For the same reason, we will create a $150-million food security fund under the existing regional tariff response initiative for small and medium-sized enterprises and the organizations that support them.
Thanks to budget 2025, we are doing so much more to make life more affordable for Canadians. Budget 2025 builds on the many actions we have already taken to support Canadian families at a time of significant economic uncertainty and affordability challenges. Here are some key examples of how we have been delivering for Canadians.
Let me begin with the high cost of housing, which has been a focal point of our government's work to restore affordability. Canada is facing a steep housing supply gap, one that threatens affordability, opportunity and the ability for Canadians to build a life and a future here. Put simply, our country needs to build many more homes. We are eliminating the GST for first-time homebuyers on homes at or under $1 million and reducing the GST for first-time homebuyers on new homes between $1 million and $1.5 million.
We will build faster and smarter thanks to the launch of Build Canada Homes, a new federal agency that will drive investment and public-private co-operation. Federal dollars invested in Build Canada Homes will be leveraged to attract private capital, investors and builders to expand the housing supply. These measures will make housing attainable, cities more vibrant and communities stronger.
We are doing so much more. Let us also look at other major cuts. Since July 1, 2025, Canadians have been paying less tax after the government announced lowering the first marginal personal income tax rate from 15% to 14%. The rate reduction, which is currently before Parliament as part of Bill C-4, would apply to taxable income up to—