Spring Economic Update 2026: Key Initiatives for the Infrastructure Industry

On April 28, 2026, the Department of Finance Canada published the Spring Economic Update 2026 (Economic Update). The Economic Update is issued against a backdrop of global uncertainty tempered by national resilience. It provides an overview of the Canadian economy’s current state and outlines the country’s economic policy priorities.

Building on the framework set out in the 2025 Budget, the Economic Update prioritizes once again the federal government’s goal of strengthening Canada’s global competitiveness and building a strong, resilient economy through strategic investments in projects and infrastructure that support economic growth, productivity and investment.

This bulletin provides an overview of the key initiatives affecting the infrastructure sector outlined in the Economic Update. 

Key Initiatives

Canada Strong Fund

The government is establishing the Canada Strong Fund (the Fund), Canada’s first sovereign wealth fund. The Fund’s mission is to invest in Canadian companies and strategic projects in order to generate commercial returns and foster wealth creation for the country. The Fund will be established with an initial endowment of C$25-billion over three years, on a cash basis. The Fund is designed to grow over time through returns generated by its investments and through the transfer of other federal assets.  

The Fund’s strategy is based primarily on equity investments in key sectors such as infrastructure, advanced manufacturing, energy and mining. In all the relevant sectors, the Fund intends to co-invest with the private sector, with a focus on minority stakes. In addition, the government intends to offer individuals the opportunity to invest directly in the Fund through a retail investment product. A Transition Office will be established to conduct targeted consultations with market participants and regulators and to determine the investment mandate, governance framework and characteristics of the retail investment product.

To ensure professional management that promotes transparency, credibility and long-term performance, the Fund will be established as an independent Crown corporation operating at arm’s length from the government. The Economic Update does not yet include enabling legislation, which will be introduced at a later date.

The Fund complements existing federal financing tools. The Economic Update highlights the risk of overlap and calls for comprehensive mandate reviews of each organization in the federal financing ecosystem. Existing entities that will continue to operate alongside the Fund include the Canada Infrastructure Bank, Export Development Canada, the Canada Growth Fund, the Business Development Bank of Canada, the Canada Indigenous Loan Guarantee Corporation and Farm Credit Canada. The Fund differs from these entities in that it invests in equity securities on a strictly commercial basis, whereas the other instruments generally take the form of loans, guarantees or grants.

Major Projects Office

The Major Projects Office (MPO), launched on August 29, 2025, is at the core of the government’s strategy to sustain Canada’s growth. The MPO’s mandate is to promote the swift and responsible advancement of projects of national interest, in order to unify the country’s economy, diversify its industries and trade, and create well-paying jobs for future generations, while protecting the environment and respecting the rights of Indigenous Peoples.

To date, the MPO has announced 15 major projects representing over C$125-billion in new investments. On March 12, 2026, the government announced that it was submitting four new projects to the MPO stemming from the former Arctic Economic and Security Corridor strategy. In addition to the major projects, the MPO is currently working on six transformative strategies. Together, these projects and strategies are expected to create more than 60,000 jobs.

Presented to the MPO on May 14, 2026, the Transmission InterConnect Investment Strategy is the latest in a series of transformation strategies. It aims to identify high-priority transmission interconnect projects, as well as financing solutions likely to make their implementation easier. It is part of the new National Electricity Strategy, which aims to double the capacity of Canada’s electricity grid by 2050 and deliver clean, reliable and affordable energy across the country.

The government is also developing legislation aimed at reducing the federal decision-making timeline for major projects from five years to a maximum of two years. The government is still endeavouring to implement the "one project, one review" approach by entering into agreements with provinces and territories so that each project is subject to only one review process. Agreements have been signed with Ontario, New Brunswick, Prince Edward Island, Alberta, Manitoba and Nova Scotia.

For additional information on the second tranche of projects referred to the MPO, see our Blakes Bulletin: Second Tranche of Projects Referred to Canada’s Major Projects Office.

Build Communities Strong Fund

Launched on April 7, 2026, the Build Communities Strong Fund (BCSF) aims to invest in a range of infrastructure projects to support economic prosperity, housing, education, health, public transit and climate change adaptation. The BCSF is expected to invest C$51-billion over 10 years starting in 2026–2027, and C$3-billion per year thereafter, to support the construction and renovation of public infrastructure. Among the expected benefits, the government estimates that projects supported by the BCSF will create an average of 42,000 jobs per year.

The BCSF will provide financing through three streams: 

• The provincial and territorial stream, which will provide C$17.2-billion over 10 years, starting in 2026–2027, to support provincial and territorial priorities and infrastructure projects in housing, post-secondary education and healthcare
• The direct delivery stream, which will provide C$6-billion over 10 years, starting in 2026–2027, to support regionally significant projects, climate adaptation and community infrastructure
• The community stream, formerly known as the Canada Community-Building Fund, which will provide C$27.8-billion over 10 years, starting in 2026–2027, to support local infrastructure priorities in 19 project categories, including roads, bridges, public transit, water, wastewater and community centres

Trade Infrastructure Strategy

The government has committed C$6-billion to support the development of infrastructure linking Canada to global markets. The funding is part of the government’s Trade Infrastructure Strategy and contributes toward achieving its goal of doubling Canadian exports to countries outside the United States over the next decade.

The key components of the strategy are as follows:

• The C$5-billion Trade Diversification Corridors Fund, which will be used to build and modernize ports, railways, airports, bridges and highways to help Canadian products reach foreign markets by increasing the capacity and efficiency of the transportation infrastructure that facilitates trade across the country
• The C$1-billion Arctic Infrastructure Fund, which will support critical Arctic transportation infrastructure with civilian and military applications, helping secure Canada’s sovereignty in the region 

Buy Canadian Policy

The government’s Buy Canadian Policy, which came into force on December 16, 2025, aims to prioritize Canadian content, materials, suppliers and workers in federal procurement. While the federal government purchases about C$37-billion in goods and services each year, the policy, since its implementation in mid-April 2026, has expanded into a portfolio of solicitations valued at around C$3.6-billion, which to date have resulted in the award of contracts totalling C$527.9-billion.

This policy covers all federal funding, including grants and contributions. For instance, in Toronto, new subway trains for Line 2 will be built with at least 55% Canadian content. The government will launch a new Small and Medium Business Procurement Program later this spring to help Canadian firms compete for and secure federal procurement opportunities. 

For additional information on the Buy Canadian Policy, see our Blakes Bulletin: Federal Government Rolls Out its Buy Canadian Policy.

Team Canada Strong

The availability of skilled labour is often a key constraint on project scheduling. The Team Canada Strong initiative addresses this issue. This initiative aims to recruit, train and hire 80,000 to 100,000 new skilled trades workers by 2030–2031. The government is prepared to invest up to C$6-billion over five years in this initiative.

Future Initiatives

Airport Reform

The government is considering reforms to modernize airport authority governance, update the airport rent framework and expand airport capacity to support economic development and reinvestment in airport infrastructure. The government also intends to examine, in consultation with airport authorities and airlines, opportunities to unlock the full value of airports, including through alternative ownership models.

The Economic Update states the government’s intention to introduce legislation to obtain the information needed to better evaluate potential airport reforms within the industry.

Supply Chains

The government is considering various options to strengthen Canada’s supply chains and improve their efficiency and reliability. Options under consideration include improving the planning and governance of trade corridors, accelerating the delivery of trade-enabling transportation infrastructure, reducing regulatory burdens on businesses and modernizing trade processes. Nouveau Monde Graphite’s Matawinie mine project in Saint-Michel-des-Saints, Quebec, which broke ground on May 19, is one of the initiatives that the government believes will help strengthen supply chains.

Canadian Investment Summit

In September 2026, the government will hold a major investment summit aimed at mobilizing C$500-billion in private investment over five years in priority sectors, including energy, critical minerals, defence and infrastructure.

For additional information on the initiatives planned in the Economic Update regarding the infrastructure industry, please contact the authors or any other member of our Infrastructure group.