A Canada Post employee drives a mail truck at a delivery depot in Vancouver, B.C., Tuesday, Dec. 17, 2024. Canada Post trucks, conveyors and mail carriers are moving again after a month-long strike by more than 55,000 postal workers left letters and parcels in limbo.

The federal government will lend $1 billion to Canada Post for the 2025-26 fiscal year so that it can continue operating while dealing with "significant financial challenges," the postal service said Friday.