The next edition of the Ottawa Report is scheduled to be sent at the end of September.
Latest News
Poilievre to Return to Parliament as Carney Prepares for First Budget
After his defeat in his long-held riding of Carleton, Ontario in April, the Leader of the Conservative Party, Pierre Poilievre, has won a byelection in Battle River—Crowfoot, Alberta to return to the House of Commons on September 15, 2025. Despite his successful return to the House of Commons, Poilievre’s leadership will be tested at his party’s national convention in January 2026.
Preparations for the 2025 federal budget, the first under Prime Minister Mark Carney and Finance Minister François-Philippe Champagne, are underway. The budget, expected in October, is anticipated to prioritize defence, housing, and nation-building projects, expanding on the Building Canada Act’s focus on infrastructure and trade diversification.
Prime Minister Carney is expected to announce the first of Canada’s major projects under Bill C-5 in the coming weeks. While on a trade mission in Germany, Prime Minister Carney identified the Contrecoeur expansion of the Port of Montreal as something that might be one of the first projects approved under his government’s major projects bill.
Canada–US Trade Update
Despite the August 1 deadline that was set for Canada and the United States to finalize a renewed economic and security agreement, no deal has been made to date. President Trump issued an executive order raising tariffs on non-CUSMA-compliant Canadian goods from 25 to 35 percent. The administration justified the increase by citing Canada’s failure to adequately address fentanyl flows across the border, even though reports indicate Canada accounts for only one percent of the fentanyl entering the United States.
Following a call with President Trump and a meeting with his cabinet, Prime Minister Carney announced on August 22 that retaliatory tariffs on CUSMA-compliant goods will be lifted effective September 1, 2025. Carney noted that both countries are working toward a renewed economic security agreement, with this fall being the new target timeline for an agreement. Prime Minister Carney emphasized that his approach to US trade has secured Canada the strongest trade relationship with the US and positions the country well for upcoming review of CUSMA, with consultations set to begin next month. Canada’s retaliatory tariffs of 25 percent on steel, aluminum, and automotive products imported from the US will stay in place as the US maintains 50 percent tariffs on Canadian steel and aluminum and a 25 percent tariff on autos.
Update on Canadian Infrastructure Bank Spending
The Canada Infrastructure Bank (CIB), established in 2017, was designed to co-invest in infrastructure projects that would not otherwise be financially feasible for public and/or private investors alone. The CIB has a mandate to disburse $35 billion by 2027-28 across five priority sectors: public transit ($5B), green infrastructure ($10B), trade and transportation ($5B), broadband ($3B), and clean power ($10B). In addition, it committed $1B for Indigenous projects and $500M for project acceleration funding.
A recent Parliamentary Budget Officer (PBO) report finds the CIB is not on track to meet its overall $35B target. The CIB is projected to disburse only $14.9B by 2027-28 and $20.7B by 2029-30. Among the five priority sectors, only public transit is expected to meet its target, with broadband the closest behind. Green infrastructure, clean power, trade and transportation, and project acceleration are all significantly under target. Notably, the CIB has already surpassed its $1B Indigenous investment goal, with projected Indigenous investments reaching $3.1B by 2027-28 and $5.4B by 2029-30.
Federal Funding Awarded
Federal Government Supports Ontario Municipalities
The Government of Canada is providing over $748 million to Ontario and the Association of Municipalities of Ontario (AMO) this year through the Canada Community-Building Fund (CCBF) to strengthen local infrastructure and support community growth. This funding helps deliver essential projects such as public transit, water systems, and local roads and bridges, creating the conditions needed for more housing and vibrant communities. The Government of Ontario will also use this funding to improve rural road networks in unincorporated areas. By providing flexible, long-term funding, the CCBF allows municipalities to meet current and future infrastructure needs while supporting efforts to increase housing supply.
Canada Invests in Climate Support for Municipalities
The Government of Canada, in partnership with the Federation of Canadian Municipalities, is investing $5.2 million through the Green Municipal Fund’s Local Leadership for Climate Adaptation initiative to support 70 climate adaptation projects across the country. These projects will help municipalities strengthen climate resilience through adaptation planning, climate-focused asset management, and community-wide risk assessments. With communities already experiencing the impacts of flooding, severe storms, and wildfires, this funding will give local governments the tools and resources they need to plan proactively, protect homes and businesses, and build healthier, more sustainable communities. As part of Canada’s National Adaptation Strategy, the investment ensures municipalities can reduce risks from a changing climate and keep Canadians safer and more resilient for the future.
Canada Supports Wildfire Knowledge Sharing
MP Corey Hogan, Parliamentary Secretary to the Minister of Energy and Natural Resources, announced $45.7 million in federal funding for 30 projects through Natural Resources Canada’s Build and Mobilize Foundational Wildland Fire Knowledge program. The funding will advance science and demonstration projects that strengthen wildfire risk assessments, improve mitigation strategies, and support adaptive forestry practices. A key focus is on Indigenous leadership, with funding helping communities access tools for wildfire readiness and supporting Indigenous-led fire stewardship projects. As wildfire seasons grow longer and more severe, this investment underscores Canada’s commitment to advancing wildfire knowledge, fostering collaboration, and ensuring communities are better prepared to prevent, respond to, and recover from wildfires.
Canada Invests in Wildfire Training
The Government of Canada has announced $540,300 for two wildfire training projects in Saskatchewan and Manitoba through the Fighting and Managing Wildfires in a Changing Climate program. The Yorkton Tribal Council will receive $335,000 to train 35 members using traditional knowledge and cultural burning practices, while the Rural Municipality of Piney will receive $204,800 to train up to 60 people from Piney and Buffalo Point First Nation. These 95 new trainees bring Canada closer to training more than 2,800 wildland firefighters, well above the original target of 1,000.
Canada Invests in Resilient Infrastructure in Quebec
The Government of Canada is providing over $557.5 million to Quebec this year through the Canada Community-Building Fund, part of a $2.8 billion commitment by 2029. The Government of Quebec will add more than $1.7 billion to support local projects such as public transit, water systems, and roads. In total, over $4.5 billion will be invested by 2029 to help communities build stronger, more resilient infrastructure.
Canada Invests in Resilient Infrastructure in British Columbia
The federal government is providing over $326 million through the Canada Community-Building Fund to 188 local governments across British Columbia in 2025–2026. This funding supports essential infrastructure like transit, water systems, roads, and bridges, as well as recreational projects that strengthen communities. Administered in British Columbia by the Union of BC Municipalities, the fund gives communities stable and flexible resources to meet current and future needs, support housing growth, and build more connected communities.
North Bay Receives Federal Funding for Transport Initiatives
The Governments of Canada, Ontario, and the City of North Bay are investing over $20.6 million to modernize local transit. The funding will bring hybrid buses to the fleet, upgrade the transit terminal and fare system, and support new sidewalks and stormwater improvements. These improvements will make transit safer, cut emissions, create jobs, and make life more affordable for residents.
British Columbia Communities Receive Support to Reduce Flood Risk
The governments of Canada, British Columbia, and municipal partners are investing over $5.25 million to upgrade water infrastructure in North Cowichan and Sayward. Upgrades will support stormwater and drainage to reduce flooding risks, improve water quality, and support sustainable stormwater management. These projects will protect community health, enhance environmental safety, and build resilience to extreme weather.
Canada Invests in Renewable Energy Options in Saskatchewan
Canada is investing over $33 million in the Indigenous-owned Wicehtowak Solar Project near Regina, led by the George Gordon First Nation through Wicehtowak Solar Ltd. The solar farm, funded through the Smart Renewables and Electrification Pathways Program, will deliver clean power, create economic opportunities, and pioneer a first-of-its-kind agreement in Saskatchewan to supply electricity to K+S Potash Canada through SaskPower.
Canada Invests in Municipal Stormwater Management
The Governments of Canada, British Columbia, and White Rock are investing over $9.86 million in stormwater upgrades along Marine Drive to reduce flooding and improve water quality in Semiahmoo Bay. The project includes new stormwater pipes, a pump station, and the replacement of aging infrastructure, helping protect homes, businesses, and key routes while strengthening community resilience to climate change.
