No shit. There's a Facebook Page (Natch) to fight the changes:
On February 17, 2009, Canadian Heritage Minister James Moore announced in a speech he made in Montreal (see here) that the Canada Magazine Fund and Publishing Assistance Program will be merged to create the Canada Periodical Fund. Initiatives from this new body will come on stream in 2010.
Departing from his prepared remarks, James Moore indicated that eligibility for funding could potentially be restricted to those magazines with an annual circulation above 5000. With notable exceptions, the circulation of virtually every Canadian literary and arts magazine, large and small, is below 5000.
Lots of background, here for example, but the bottom line appears to be that the Tory government will de-fund Canada's literary magazines while continuing to shovel $2,500,000 per annum at Macleans so Kenneth Whyte can keep publishing slop that "resembles hate speech". Talk about Robin Hood in reverse.