A new report from the Parliamentary Budget Officer projects Canada’s Disaster Financial Assistance Arrangements (DFAA) program will cost $1.8 billion annually from 2025 to 2034—double the average of the previous decade. Floods are expected to drive most costs, followed by wildfires and storms. With climate-related disasters increasing in frequency and severity, the report highlights the urgency of risk reduction, resilient rebuilding, and long-term preparedness. The updated DFAA structure will also expand support for mitigation and pre-disaster resilience efforts.