He served as a backbench supporter of Prime Minister Pierre Trudeau's government until the 1979 election, when he was defeated, coming in third behind winning Progressive Conservative Lenard Gustafson and Knight.

Goodale ran on a platform of fiscal responsibility in this election, arguing that both the Progressive Conservative and New Democratic parties favoured excessive spending policies, typified by their proposals for a Keynesian-style stimulation of the provincial economy through subsidized home improvement and renovation schemes.

He has the prenominal "the Honourable" and the postnominal "PC" for life by virtue of being made a member of the Queen's Privy Council for Canada on November 4, 1993.

In May 2002, he was named Minister of Public Works and Government Services, a few weeks after the Auditor General Sheila Fraser issued a report accusing the department of inappropriate contracting practices.

[citation needed] On December 28, 2005, a letter surfaced from Royal Canadian Mounted Police (RCMP) Commissioner Giuliano Zaccardelli confirming the force was launching a criminal investigation into whether details regarding government tax policies relating to income trust funds were leaked from the Finance Minister's office.

[13] Goodale was re-elected to the House of Commons in the general election on January 23, 2006, but the Conservatives won government and he lost his cabinet position.

One month later, in November 2008, the Liberals and their fellow opposition parties in the Canadian parliament, the NDP and Bloc Québécois, indicated their intention to defeat Stephen Harper's Conservative government in a motion of no confidence, and expressed their desire for Governor General Michaëlle Jean to ask a member of the opposition to form a new government.

[19] In the end, at Prime Minister Harper's request, Jean prorogued Parliament before a confidence vote could be put to the House.

The NDP surpassed the Liberals in number of seats, becoming the official opposition, resulted in priority in choosing parliamentary offices.

[13] The Liberals won a majority government in the 2015 federal election, and Goodale was re-elected to a ninth term in the House of Commons, once again representing Regina—Wascana as a consequence of redistricting.

Goodale sought re-election in the 2019 federal election, but lost his bid to Conservative Party candidate Michael Kram in a rematch of the 2015 race.

[23] On March 31, 2020, Prime Minister Justin Trudeau announced the appointment of Goodale as Special Advisor to the Government of Canada's response to Ukraine International Airlines Flight 752 crash.

[28] Goodale's priorities in the position will include "working with the U.K. on climate change and the recovery from the COVID-19 pandemic" as well as replacing the "transitional trade agreement with a permanent deal in the wake of Brexit".

[29] The appointment drew praise from Saskatchewan premier Scott Moe, who called the appointment "well deserved" and stating Goodale will be "a real advocate and a great representative for the nation and Canada, but he’ll also be, in many ways, a great representative for the province of Saskatchewan", as well as Conservative foreign affairs critic Michael Chong, who said Goodale "brings a lot of experience to the job".