Ottawa Report – August 2026

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The next edition of the Ottawa Report is scheduled to be sent at the end of September.

Latest News

Canada-US Trade Dispute: Update and Outlook

Canada-US trade talks collapsed on August 21, triggering 50 percent US tariffs on a broad range of Canadian exports the next day. Public comments from President Trump, Prime Minister Carney, and Premier Ford suggest tensions may continue to rise in the coming months. A return to negotiations before the US midterm elections on November 3 appears unlikely, though the political environment could become more favourable to a deal afterward.

The negotiations broke down over several key issues, including Canada’s dairy import quotas, provincial restrictions on US alcohol sales, and Canadian countermeasures on imported vehicles. Canada sought meaningful discussions on US tariffs affecting steel, aluminum, and auto sectors, but the parties could not reach common ground. Prime Minister Carney argued that the final US demands were unfair and offered insufficient benefits to Canada.

In response to the US tariffs, Canada announced dollar-for-dollar retaliatory measures on approximately $27.6 billion worth of US imports, effective September 8. The federal government also unveiled roughly $7.5 billion in support for affected businesses and workers through financing, diversification programs, and enhanced worker assistance.

While many Canadians support the government’s hardline approach, the dispute marks a significant escalation in the Canada-US trade relationship and adds uncertainty for exporters and industries that rely on integrated North American supply chains. Further rhetoric and possible tariff escalation are likely through the fall as both governments face domestic pressure to remain firm.

Looking ahead, the most realistic opportunity for renewed negotiations may come after the US midterm elections, when economic and political pressures could create incentives for both sides to return to the table. Until then, businesses should expect continued uncertainty and a potentially volatile trade environment.

Evan Siddall named Chair of Build Canada Homes

The Government of Canada announced the appointment of Evan Siddall as the inaugural chair of Build Canada Homes, the new federal agency focused on increasing housing supply and affordability. Drawing on his experience as former CEO of CMHC and vice chair of BMO Capital Markets, Siddall will help guide the agency as it expands operations. Since its launch, Build Canada Homes has committed to nearly 17,000 housing units through 17 partnerships, with more than 1,900 homes already under construction, supporting affordable and nonmarket housing across Canada.

Canada Announces up to $10 Billion in Support for Labrador Clean Energy Projects

The federal government announced a package of up to $10 billion in financial support and investments for clean electricity generation and transmission in Labrador. The package covers upgrades and expansion at Churchill Falls, federal financing guarantees for the proposed 2,700-megawatt Gull Island hydroelectric project, more than 660 kilometres of transmission infrastructure, a new Labrador West transmission line, and enabling infrastructure for critical minerals development. The combined construction projects are valued at nearly $70 billion, which the federal backgrounder characterizes as the largest clean energy investment in North American history. Canada is also providing nearly $20 million for feasibility work on mining-enabling transportation and energy infrastructure through the First and Last Mile Fund.

Government Funding

Federal Government and Federation of Canadian Municipalities Support Municipal Climate Resilience Projects

Environment and Climate Change Canada and the Federation of Canadian Municipalities announced $34.2 million for 141 climate resilience projects in 128 communities through the Green Municipal Fund’s Local Leadership for Climate Adaptation initiative. The projects support adaptation plans, climate-focused asset management, risk assessments, financing studies and measures to reduce flooding, extreme heat, and other climate risks. Examples include $785,380 for cooling measures in Halifax parks, $789,600 for flood resilient infrastructure in Port Coquitlam, $649,870 for extreme heat mitigation in Waterloo Region housing, and $1 million for flood reduction measures on Kanesatake Lands.

Federal Government Invests in Six British Columbia Airports

Transport Canada is investing more than $23.5 million through the Airports Capital Assistance Program for safety and reliability improvements at six British Columbia airports. Masset will receive $10.85 million for pavement and drainage, Prince Rupert $3.76 million for airfield lighting, Smithers $3.62 million for airfield electrical equipment, Bella Coola $3.40 million for runway, taxiway, and apron rehabilitation, Kamloops $1.35 million for electrical infrastructure, and Northern Rockies Regional Airport in Fort Nelson $552,600 for runway approach lighting. The projects will renew aging infrastructure and support continued air access for local, rural, and remote communities.

Federal Funding Extends Antigonish Water and Wastewater Infrastructure

The federal government announced $566,644 through the direct delivery stream of the Build Communities Strong Fund for municipal infrastructure in Antigonish County. In partnership with the Antigonish Affordable Housing Society, the project will construct a new road and sidewalk and extend water, wastewater, and stormwater systems. The work is intended to enable 150 affordable housing units, including four units for people with intellectual disabilities, and 10 supportive housing units.

Canada and Nova Scotia Invest $10 Million in Rural Transit

The federal and Nova Scotia governments are investing $10 million to renew Tidal Transit service across western Nova Scotia. The federal government will provide $8 million through the Rural Transit Solutions Fund, while the province will contribute $2 million. The project will replace six aging buses with five conventional buses and one electric bus, install three charging stations, and upgrade the maintenance facility. Tidal Transit serves eight rural municipalities from Weymouth to Grand Pré. The investment is expected to improve service reliability and access to employment, healthcare, education, and social services across the Annapolis Valley and surrounding communities.

Federal Government Advances Inuvik Airport Modernization

The Government of Canada will provide up to $49.5 million through the Arctic Infrastructure Fund to upgrade the existing runway and access road at the Inuvik (Mike Zubko) Airport, with work expected to begin this fall in partnership with the Government of the Northwest Territories. The funding builds on a $230 million Department of National Defence investment to extend and modernize the runway. The projects will create a consistent paved runway surface and an asphalt access road capable of supporting heavier traffic and growing cargo volumes. The airport is a regional passenger, cargo, emergency-response, and community-resupply hub, as well as a Royal Canadian Air Force and NORAD Forward Operating Location.

Governments Complete More Than $11 Million in Sarnia Transit Improvements

Sarnia has completed transit projects supported by a combined investment of more than $11.2 million from the federal, Ontario, and municipal governments. The work modernized the transit garage, built a new terminal, and expanded the fleet with 20 conventional, electric, and specialized buses. The Government of Canada contributed $4,733,737 through the Public Transit Infrastructure stream of the Investing in Canada Infrastructure Program, Ontario provided $3,741,240 and the City of Sarnia contributed $2,749,866. The projects, completed through 2024 and 2025, are intended to improve safety, reliability, accessibility, and service capacity.

Canada, New Brunswick, and Moncton Invest More Than $25 Million in Housing-Enabling Infrastructure

The federal, New Brunswick, and Moncton governments announced a joint investment of more than $25 million through the Canada Housing Infrastructure Fund to expand sanitary sewer capacity and add stormwater infrastructure along part of Elmwood Drive. The underground work will enable future development of up to 1,300 housing units. The affected road section will also be rebuilt and widened to four lanes, with an integrated multi-purpose trail. The federal government is contributing $9.6 million, New Brunswick nearly $8 million, and the City of Moncton more than $7.5 million.

Canada and Ontario Invest in Housing in Bradford West Gwillimbury

The Town of Bradford West Gwillimbury will receive up to $94.8 million from Ontario and Canada through the Development Charge Reduction Program (DCRP) in exchange for reducing development charges by up to 76 percent between March 2026 and March 2029. The funding, delivered through the federal Build Communities Strong Fund (BCSF) and matched by Ontario, will support housing-enabling infrastructure and help accelerate new home construction. The development charge reductions are expected to save builders up to $36,500 per home, and when combined with expanded HST relief, homebuyers could save up to $166,500 on a new home. The town estimates these measures could help unlock more than 29,000 new homes, improving housing supply and affordability.

Canada and Ontario Invest in Housing in Hamilton

The City of Hamilton will receive $572 million through the Development Charge Reduction Program (DCRP), funded jointly by Ontario and Canada through the federal Build Communities Strong Fund (BCSF), in exchange for eliminating residential development charges from March 2026 to March 2029. The move is expected to reduce construction costs by up to $100,442 per home, and when combined with the removal of the HST on new homes, could save homebuyers up to $230,000. The funding will support housing-enabling infrastructure and is expected to help unlock more than 31,000 new homes, increasing housing supply and affordability across Hamilton.

Canada and Ontario Invest in Housing in Vaughan

The City of Vaughan will receive up to $697.2 million through the Development Charge Reduction Program (DCRP), funded jointly by Ontario and Canada through the federal Build Communities Strong Fund (BCSF). In return, Vaughan has reduced residential development charges by 50 percent from March 2026 to March 2029 and eliminated them entirely for certain qualifying residential projects between February 2026 and October 2027. These measures are expected to lower home construction costs by up to $98,056 per unit, and when combined with HST relief, could save homebuyers up to $230,000 on a new home. The city estimates the initiative and related infrastructure investments could help unlock more than 120,000 new housing units, while supporting major water, wastewater, transportation, and emergency services infrastructure projects across Vaughan.

Canada Invests in Mapleton Community Center

Through the federal Build Communities Strong Fund (BCSF), the Government of Canada is investing more than $4.7 million to expand and modernize the PMD Arena and Community Centre in Drayton, Township of Mapleton. The project will add new multi-sport and community space, improve accessibility, and upgrade building systems for greater energy efficiency, creating a more inclusive and versatile community hub to serve the township’s growing population.

Canada Invests in Fredericton Community Infrastructure

Through the federal Build Communities Strong Fund (BCSF), the Government of Canada is investing up to $6 million, alongside a $9 million municipal contribution, to retrofit the Fredericton Indoor Pool. The project will upgrade key building and pool systems, improve energy efficiency, and enhance accessibility and inclusion for seniors, youth, and people with disabilities, helping extend the facility’s lifespan and better serve the community.

The Federal Government Invests in Transportation for the Durham Region

The Government of Canada is investing more than $3.3 million in three active transportation projects across Durham Region. The funding will support new and improved multi-use trails in Ajax, planning work for the 30-kilometre Durham Meadoway corridor, and a new multi-use path in Oshawa. Together, these projects will enhance connectivity, improve safety and accessibility, and provide more opportunities for residents to walk, cycle, and enjoy outdoor recreation.

Canada Invests in Community Infrastructure in Dartmouth

Through the federal Build Communities Strong Fund (BCSF), the Government of Canada is investing up to $1.26 million to revitalize the Mic Mac Amateur Aquatic Club in Dartmouth, Nova Scotia. The project will improve energy efficiency, climate resilience, and accessibility through building upgrades, solar panel installation, accessible docks and pathways, expanded indoor facilities, and renovated gender-neutral washrooms. The enhancements will create a more inclusive, sustainable, and accessible recreational space for the community.

Federal Government Invests in Transit Services for Communities on the Sunshine Coast

The Government of Canada is investing more than $175,000 to support community transit services in Pender Harbour, British Columbia. The funding will help purchase an accessible mini-bus and storage shelter, increasing transportation capacity for seniors, people with disabilities, Indigenous residents, and other vulnerable community members. The project will improve access to healthcare, social services, and community activities while helping reduce social isolation in this rural region.

Canada Invests in Transportation Infrastructure in North Bay

The federal government is investing over $1.9 million in active transportation improvements in North Bay, including upgrades to the Trout Lake Road and Laurentian Avenue intersection, with new pedestrian and cycling infrastructure, enhanced crossings, and multi-use pathways. An additional $1.9 million through the Canada Public Transit Fund will support bus refurbishments, accessibility improvements, and new pedestrian crossings. The city is also preparing to open its new Recreation and Community Centre, a project supported by more than $35 million in federal funding through the Green and Inclusive Community Buildings Fund and the Build Communities Strong Fund (BCSF).

Federal Government Invests in Sanitary Pumping Station

Through the federal Build Communities Strong Fund (BCSF), the Government of Canada is investing up to $3.8 million in the William Street Sanitary Pumping Station Expansion project in North Middlesex, Ontario. The project will upgrade wastewater infrastructure serving Ailsa Craig and Nairn, increasing system capacity, supporting future residential growth, and ensuring reliable, environmentally compliant services for the growing communities.