On November 4, 2025, Finance Minister François-Philippe Champagne tabled the Government of Canada’s 2025 federal budget, titled Canada Strong.[1] As the first federal budget tabled under Prime Minister Mark Carney, Canada Strong reflects a strategic shift toward infrastructure-led economic development and investment-driven growth.
With a projected deficit of CA$78.3 billion for 2025–26, the government describes Canada Strong as an “investment budget,” supported by a five-year, CA$280 billion capital plan, which provides a number of infrastructure-related initiatives, outlined below.
Major capital investments
Within each area of investment, the five-year capital plan highlights large-scale initiatives expected to shape Canada’s infrastructure and economic development. Key infrastructure investments include:
- CA$5 billion over seven years — Trade Diversification Corridors Fund
Designed to enhance access to international markets, this fund will finance infrastructure projects that strengthen supply chains and support the efficient movement of goods across Canada and abroad. Projects of all sizes will be eligible, with particular focus on developing and modernizing ports, airports and rail networks nationwide.
- CA$51 billion over ten years — Build Communities Strong Fund
Launched to address the infrastructure priorities of local Canadian communities, this program provides funding to provincial and territorial governments for a diverse array of projects. Investments will prioritize housing-enabling infrastructure, including water and wastewater systems and roads, as well as health facilities and improvements to post-secondary campuses. This fund will also support large-scale projects developing climate-resilient infrastructure, large building retrofits and community infrastructure.
- CA$55.2 million over four years — Airports Capital Assistance Program
Aimed at strengthening the long-term sustainability and competitiveness of Canada’s airports, this program will support safety-related infrastructure projects and facility upgrades. Administered by Transport Canada, it will include initiatives at the local and regional airports, such as the runway extension at Les Îles-de-la-Madeleine Airport.
- CA$25 billion over five years — Home Building Initiatives
Designed to reduce the current housing supply gap, the government’s investment in homebuilding initiatives is allocated across multiple channels, including targeted tax measures, an initial CA$13 billion to establish the new federal agency Build Canada Homes and CA$16 billion directed to existing housing programs. Build Canada Homes will advance the development of affordable housing, including co-operative housing, by leveraging public land, providing flexible financial incentives, attracting private capital, enabling large-scale portfolio projects and working manufacturers to deliver housing at scale.
- CA$1 billion over four years — Arctic Infrastructure Fund
Created to protect sovereignty in the North while improving connectivity between Northern communities and domestic and international markets, this initiative will support the development and expansion of critical transportation infrastructure. Administered by Transport Canada, it will fund projects such as deep-water ports, sealift facilities, airstrips and all-season roads. The funded projects will be designed for dual-use, serving both civilian and military purposes.
Support for Major Projects Office and additional policy measures
Canada Strong further underscores the federal government’s commitment to advancing infrastructure delivery by streamlining regulatory processes and expanding access to project financing.
Building on the previously announced creation of the Major Projects Office (MPO), Canada Strong allocates CA$213.8 million over five years to establish the Office as the single point of contact for nation-building projects. The MPO’s funding and mandate will expedite the delivery of major infrastructure initiatives, such as the Contrecoeur Terminal Container Project and the Alto High-Speed Rail Project, by coordinating federal approvals and aligning funding sources.
The MPO will also play a coordinating role in project financing, bringing together resources from the private sector, provincial and territorial governments and federal entities, including the Canada Infrastructure Bank, the Canada Growth Fund and the Canada Indigenous Loan Guarantee Corporation.
To support this integrated approach, the federal government intends to amend the Canada Infrastructure Bank Act. The proposed amendments would:
- Increase the statutory capital envelope for the Canada Infrastructure Bank from CA$35 billion to CA$45 billion and
- Broaden the Bank’s investment mandate to permit investment in any nation-building initiative referred by the MPO, regardless of sector or asset class.
Conclusion
Canada Strong reflects a clear commitment to long-term investment in infrastructure, housing and national defence and associated measures to enhance productivity. The government’s emphasis on capital spending presents both opportunities and challenges for the private sector.
By expanding infrastructure financing tools and advancing major project delivery, Canada Strong is poised to create a more dynamic environment for public and private investment across Canada’s infrastructure sector.
Should you have any questions about the federal budget or other issues related to public infrastructure, please do not hesitate to contact Lampros Stougiannos, Ali Amadee, Anoosh Loertscher or any member of Dentons’ Infrastructure and Public-Private Partnerships group.
The authors would like to thank Lauren McAuley, Dentons articling student in Montréal, for her contributions to this insight.
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Lampros Stougiannos is a partner in the Corporate group in Dentons’ Ottawa office. His practice focuses on infrastructure, public-private partnerships and renewable energy, as well as on government contracting and procurement law.
Ali Amadee is a partner in the Corporate group in Dentons’ Montréal office. His practice focuses on infrastructure, public-private partnerships, corporate and commercial law, mergers and acquisitions, project finance, venture capital, as well as technology and emerging growth
Anoosh Loertscher is an associate in the Corporate group in Dentons' Montréal office. He works with private and public sector clients on a wide range of corporate and commercial matters, with a focus on infrastructure and public-private partnerships.