On November 5, 2026, the Government of Canada tabled its 2026 federal budget, titled Masters of our destiny (Budget 2026). Budget 2026 is supported by CA$403.9 billion in projected federal capital investments from 2025-26 to 2030-31, which provide for a number of infrastructure-related initiatives, outlined below.
Major capital investments
Budget 2026 highlights a number of large-scale initiatives expected to shape Canada’s infrastructure and economic development. Key infrastructure investments include:
- National Electricity Strategy: over CA$50 billion
Aimed at doubling the capacity of Canada’s grid by 2050, the Strategy is supported by nearly CA$4 billion over ten years, starting in 2027-28, for electricity infrastructure expansion, renewable energy and priority projects, CA$37 million in 2027-28 for cost-benefit analysis of interprovincial interties, and CA$1.6 billion over ten years to improve energy reliability in the North, including the Mayo Hydro Facility and Atlin Hydro Expansion projects. The government also intends to work with interested provinces and territories on new approaches to financing the largest electricity sector projects across the infrastructure lifecycle.
- First Nations housing and infrastructure: CA$32 billion over ten years
This long-term commitment is designed to provide greater certainty, accelerate construction and transform the way First Nations projects are financed. It includes CA$18.5 billion over ten years, starting in 2027-28, for a new First Nations On-Reserve Infrastructure Program supporting the construction of roads, bridges, schools, health facilities and water and wastewater infrastructure. It also includes CA$500 million over ten years for a Monetisation Pilot that will use federal funding to secure upfront project financing through the First Nations Financial Authority, with support from the First Nations Infrastructure Institute, giving First Nations a financing tool currently used by municipalities for infrastructure projects.
- Transportation
Budget 2026 proposes to fully fund the construction and certain maintenance costs of the approximately 800 km Mackenzie Valley Highway in the Northwest Territories. The project, which is under consideration for listing as a project of national interest by the Major Projects Office, will connect isolated communities and support an expanding Canadian military presence in the North. Budget 2026 proposes CA$1.3 billion over eight years to renew the Ferry Services Contribution Program and CA$1.2 billion over three years for VIA Rail operations and maintenance. Legislation will also be introduced to accelerate construction of Alto High-Speed Rail by streamlining expropriation and enabling early preconstruction work.
- Zero-Emission Vehicle Infrastructure Program: CA$587 million over five years
Renewed funding to Environment and Climate Change Canada will support the installation of over 55,000 additional electric vehicle chargers, more than doubling the number of federally supported chargers to date.
- Airport privatization: CA$37.6 million over three years
As the government is seeking private investment through long-term operating concessions for Canada’s four largest airports, it is allocating CA$37.6 million to support due diligence, development of the concession framework and a competitive process to select the operator(s) by early 2029. Legislation will also be introduced to implement the model. Concession proceeds will be reinvested across the air transportation system, and eligibility for the Airports Capital Assistance Program will be expanded to include smaller airports in the National Airports System.
Support for major projects and additional policy measures
To accelerate project delivery, Budget 2026 allocates CA$187.4 million over five years, beginning in 2026-27, and CA$24.2 million in future years to establish a major projects management entity that would complement the Major Projects Office by providing the expertise to keep approved projects on track, beginning with the Mackenzie Valley Highway and the Taltson Hydro Expansion project. In his remarks on Budget 2026, the Minister of Finance and National Revenue also announced that the government will propose amendments to the Impact Assessment Act to bring greater legal certainty and predictability to projects, consistent with the “one project, one decision, one year” approach already advanced under Bill C-39, the Building Canada Strong Act, while maintaining environmental protections and upholding Indigenous rights.[1]
Budget 2026 also proposes several measures affecting how infrastructure is financed and overseen, including to:
- Move responsibility for the Canada Infrastructure Bank (CIB) to the Minister of Finance, focus its mandate on providing loans and loan guarantees for major infrastructure investments, and consolidate the Indigenous Loan Guarantee Program within the CIB;
- Amend the Insurance Companies Act and the Investments in Permitted Infrastructure Entities Regulations to broaden the scope of permitted infrastructure investments by Canadian life insurers, unlocking additional long-term capital for transportation networks, energy infrastructure and other assets;
- Establish the CA$25 billion Canada Strong Fund as an arm’s-length, standalone Crown corporation and launch Canada Strong Notes in 2027, a principal-protected retail investment product linked to the Canada Strong Fund;
- Enable Canadian AI companies to access 500 MW of sovereign AI compute through new financial tools, such as backstops and offtake agreements, to mobilize private capital and expand compute capacity; and
- Consolidate oversight of federally owned bridges and crossings currently under the portfolio of Housing, Infrastructure and Communities Canada, including the Federal Bridge Corporation Limited, the Confederation Bridge and the Victoria Bridge, under the Minister of Housing and Infrastructure.
Conclusion
Budget 2026 reflects a continued commitment to long-term investment in infrastructure, energy, transportation and Indigenous communities. By pairing significant capital commitments with airport concessions, the Canada Strong Fund, a refocused CIB and a new major projects management entity, Budget 2026 aims to further strengthen the framework for public and private investment across Canada’s infrastructure sector. Market participants should monitor the implementing legislation and program details, many of which remain to be released.
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Lampros Stougiannos is a partner in Dentons Canada’s Infrastructure and PPP group. For more information about Lampros, please visit: https://www.dentons.com/en/lampros-stougiannos.
Anoosh Loertscher is a senior associate in Dentons Canada’s Corporate group. For more information about Anoosh, please visit: https://www.dentons.com/en/anoosh-loertscher.
The authors wish to thank Naomi Jauvin, an articling student in Dentons Canada’s Montréal office, for her contribution to this article.
[1] Canada, Department of Finance, “Remarks by the Minister of Finance and National Revenue” (5 November 2026).