The Government of Saskatchewan has applied for intervenor status in Newfoundland and Labrador's legal challenge against the federal equalization formula, citing concerns over fairness in how funds are distributed among provinces. Saskatchewan’s application was submitted on January 23, 2025.
Newfoundland and Labrador originally launched its case on June 21, 2024, filing a statement of claim with the Supreme Court of Newfoundland and Labrador. Saskatchewan now seeks to support the challenge, arguing that the current equalization model disproportionately disadvantages provinces with strong natural resource sectors.
"The equalization formula has consistently failed in its intended goal to create fairness for all Canadians," said Saskatchewan Justice Minister and Attorney General Tim McLeod. "Like Newfoundland and Labrador, we have serious concerns with the current formula, which has repeatedly punished provinces with strong natural resource sectors like Saskatchewan."
Saskatchewan argues that the equalization system does not properly account for the structural costs of delivering public services in different provinces. Additionally, the government claims the formula unfairly redistributes surplus payments to recipient provinces while excluding others.
McLeod emphasized the financial disparity created by the formula.
"Under the current equalization formula, Saskatchewan has not received payments for the last 18 years," he said. "Meanwhile, four other provinces will receive nearly $3,000 per resident in 2025-26, while Saskatchewan, Alberta, and British Columbia receive nothing. This hardly seems equitable, even by the most basic standards."
Saskatchewan taxpayers contribute significantly to the program through federal taxes, including income tax and GST. The province estimates that every Canadian pays an average of $634 per year into the $26-billion equalization fund, with Saskatchewan taxpayers collectively contributing $786 million annually.
The Supreme Court of Newfoundland and Labrador is set to hear Saskatchewan’s intervention application on October 20, 2025.