Taxpayer watchdog granted leave to intervene in N.L. equalization court battle
The Canadian Taxpayers Federation argues that equalization was not “designed to let provincial governments sue the federal government for bigger equalization handouts.”
The Canadian Taxpayers Federation (CTF) has been granted leave to intervene in a Newfoundland and Labrador Supreme Court case that could reshape how billions in federal equalization dollars are distributed across Canada.
The case pits the Newfoundland and Labrador government against Ottawa, with the province arguing it deserves a larger share of equalization transfers.
Newfoundland and Labrador received more than $110 million under the program this year but claims it is entitled to more to fund public services “reasonably comparable” to those in other provinces.
Equalization already costs taxpayers $25 billion a year — and now the Newfoundland and Labrador government wants even more.
— Devin Drover (@DevinDrover) October 22, 2025
The CTF has been granted leave to intervene to make sure taxpayers’ voices are heard in COURT.
RELEASE:https://t.co/n6QvA0D87m
The CTF says that argument misses the point — and the constitutional limits:
“Equalization is bad for taxpayers in regions that pay for the program and get nothing in return, but it’s even worse for the provinces that collect the cheques that essentially incentivize bad policies,” said Devin Drover, CTF General Counsel. “Canada’s Constitution was never designed to let provincial governments sue the federal government for bigger equalization handouts.”
Drover said the decision allowing the taxpayers’ group to intervene is “an important win for taxpayers” because it ensures their voices will be heard in a case that could cost billions nationwide.
The federal equalization program redistributes roughly $25 billion each year to so-called “have-not” provinces — including Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
The money is paid for primarily by taxpayers in British Columbia, Alberta, and Saskatchewan.
“Taxpayers across the country shouldn’t be forced to bankroll whatever new spending provincial politicians dream up,” Drover added. “Equalization already costs $25 billion a year and taxpayers can’t afford to pay an even higher bill.”
A trial date has not yet been set.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.
Featured Stories
COMMENTS
-
Bruce Atchison commented 2025-10-22 22:15:34 -0400Redistribution is so unfair. The “equalization” payment scheme is like taking the average scores of student tests and giving the same mark to the entire class. Lazy students benefit and industrious students are harmed. Socialism is based on greed and covetousness. It steals from the makers to give to the takers and then lies about it. I feel sorry for people who are too stupid to see that NOTHING is free and that the government gets its money from productive taxpayers.
