Prime Minister Justin Trudeau says Canadians who need it can access the Canadian Emergency Response Benefit for an additional eight weeks.
The program, introduced in early April, was first intended to give eligible Canadians $2,000 for a maximum of 16 weeks. The extension will mean millions of people can continue to rely on it until the end of the summer.
A total of 8.4 million Canadians have applied for and received payments, costing the federal government approximately $43.5 billion. In recent weeks, 1.2 million people have left the program as the economy reopens in many jurisdictions across the country.
Since the beginning of its launch, there have been concerns some Canadians will collect the benefit fraudulently. Over the weekend, the Liberals proposed stiff penalties for those who knowingly scam the system, including fines and possible jail time.
The New Democrats, who have been supportive of Liberal COVID-19 policy so far, have said they will not support the penalties but pushed for the extension. The Liberals need the NDP's support for a confidence vote Wednesday on its $87 billion COVID-19 response. Failure to pass the legislation could trigger an early election.
Trudeau also confirmed reports the U.S. Canada border would remain closed until at least July 21. Only essential travel has been allowed over the border since March 21 to limit the spread of COVID-19 between the two countries.
According to John Hopkins University, the U.S. had more than 2.1 million COVID-19 cases and 116,250 deaths. In comparison, Canada has 99,147 cases, and 8,175 people have died.
The prime minister also met with the Black Parliamentary Caucus, which consists of black MPs and senators. It recommended several measures Trudeau's government could take to end systemic racism in Canada.
Trudeau did not make any commitments but admitted his government is considering changes, including an end to all mandatory minimum sentences. The sentences are said to target visible minorities unfairly.
The caucus is also recommending economic support for black-owned businesses and black entrepreneurs.