Ottawa Report – October 2026

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

Latest News

Federal Budget Expected November 5

On November 5, the federal government will table its second budget under Prime Minister Mark Carney, a fiscal plan titled Master of Our Own Destiny. The budget is expected to emphasize economic growth, competitiveness, and long-term productivity through measures aimed at supporting businesses, accelerating major infrastructure projects, and strengthening Canada’s industrial base.

The budget is also expected to build on recent policy announcements, including the Canada-Ontario partnership framework, the proposed Productivity Mega Tax Deduction, and significant investments in artificial intelligence (AI) and digital infrastructure. Together, these initiatives signal a government strategy focused on attracting private investment, improving productivity, and positioning Canada to compete more effectively in key sectors such as advanced manufacturing, clean technology, and the digital economy.

With economic sovereignty emerging as a central theme, the budget is likely to frame these measures as part of a broader effort to enhance Canada’s resilience, create high-value jobs, and ensure the country is better positioned to navigate an increasingly uncertain global economic environment.

Pacific Link Listed as a Project of National Interest

The federal government has listed Pacific Link as a project of national interest under the Building Canada Act. Canada and Alberta plan to share equal ownership, while Indigenous communities will be offered at least a 10 percent ownership interest supported by federal and provincial loan guarantee programs. Trans Mountain Corporation is leading project development with support from Pembina Pipeline Corporation. The listing starts a single federal review led by the Major Projects Office and supported by the Canada Energy Regulator. Project conditions, consultations, route work, and other development activities are to continue through September 2027.

Parliamentary Business

Government Responds to Committee Report on Extreme Weather Events

The government of Canada’s response to the environment committees report on Protecting Canadian Residents from Extreme Weather Events emphasizes that climate change is already creating significant risks for communities, infrastructure, and public safety, and that adaptation must become a core part of how governments plan and invest. The document highlights the implementation of Canada’s National Adaptation Strategy as the primary framework for building resilience to floods, wildfires, extreme heat, and other climate hazards. From a municipal infrastructure perspective, the government signals that climate resilience is increasingly being integrated into federal funding programs, meaning municipalities will be expected to assess climate risks and incorporate adaptation measures into infrastructure projects.

The response points to significant investments through programs such as the Disaster Mitigation and Adaptation Fund and the Build Communities Strong Fund to support resilient infrastructure. There is also a strong focus on improving flood mapping, strengthening building codes and engineering standards, and ensuring assets are designed for future climate conditions rather than historical weather patterns. The government further promotes nature-based solutions, such as wetlands and natural flood protection systems, alongside traditional infrastructure. Overall, the key message is that climate resilience is no longer a standalone environmental objective but an essential requirement for municipal planning, infrastructure development, and access to federal funding.

Government Funding

Canada Commits up to One Billion Dollars for Ring of Fire Roads

A new Canada-Ontario action plan includes a federal commitment of up to $1 billion over three years for essential road infrastructure supporting critical-mineral development in Northern Ontario’s Ring of Fire. Canada and Ontario will establish a coordinated permitting process intended to reduce duplication while respecting both jurisdictions. The governments will also identify priority projects that could draw on federal critical-minerals and infrastructure programs and create a joint working group on Indigenous consultation and engagement. The announcement establishes a funding commitment and delivery framework; individual road projects will still require project-specific planning, consultation, and approvals.

Green Municipal Fund Supports 162 Housing and Retrofit Projects

Canada and the Federation of Canadian Municipalities announced $66.3 million for 162 projects through the Green Municipal Fund’s Community Efficiency Financing and Sustainable Affordable Housing initiatives. Municipalities and local delivery partners will use the funding for residential retrofit financing, feasibility studies, program design, affordable housing planning, and low-carbon capital projects. Supported measures include insulation, air sealing, high-efficiency windows, and heat pumps. Projects span every region, with Sustainable Affordable Housing work identified in Ottawa, Toronto, Montréal, Winnipeg, Vancouver, Halifax, Fredericton, and other communities, as well as a northern project in Nunavut.

Newfoundland and Labrador Water Projects Receive $23 Million Dollars

Canada, Newfoundland and Labrador, and participating municipalities announced more than $23 million for 10 water, wastewater, stormwater, and solid waste projects across the province. The federal share is approximately $10.1 million, the province is contributing about $9.5 million, and municipalities are providing about $4.1 million. Major projects include water, sewer, and stormwater replacement on Holden Street in Mount Pearl, a new water tower in Twillingate, and water and wastewater renewal in Stephenville. The combined portfolio is expected to enable up to 1,800 housing units while improving the reliability of essential municipal services.

Windsor and Tecumseh Receive Conditional Infrastructure Funding

Canada and Ontario announced up to $84.4 million for Windsor and Tecumseh through the Development Charge Reduction Program. Subject to agreements, Windsor would receive up to $77.6 million for stormwater management, road widening and extensions, and related infrastructure. Tecumseh would receive up to $6.8 million for a new trunk sanitary sewer. The municipalities have committed to temporary reductions in residential development charges. The governments estimate that the charge reductions and infrastructure work could help unlock 19,263 homes, although project funding and final approvals remain conditional.

Belleville Receives $2.8 Million Dollars for Rural Transit

The federal government is investing $2.8 million through the Rural Transit Solutions Fund to modernize Belleville’s rural transit fleet. The city will contribute approximately $1.14 million and purchase two accessible hybrid buses and three accessible minibuses to replace aging vehicles. The project is intended to improve reliable and accessible service in Belleville and surrounding communities. It complements more than $4.5 million in baseline federal transit funding allocated to Belleville over 10 years for upgrading, replacing, and maintaining public transit infrastructure. Federal funding remains conditional on a contribution agreement.

Canada and New Brunswick Fund Saint John Aquatic Centre Renovation

Canada and New Brunswick are investing a combined $18.6 million to renovate the Canada Games Aquatic Centre in Saint John, with each government contributing more than $9.3 million. Upgrades will prepare the 1985 facility for the 2029 Canada Summer Games and extend its useful life. Planned work includes universal barrier-free access, replacement of the main electrical and lighting systems, new heating, ventilation and air conditioning equipment, expansion of the leisure pool, gender-inclusive changing areas, and amenities for adaptive sport participants. Federal support is being provided through the Provincial and Territorial stream of the Build Communities Strong Fund.

L’Île-Perrot Community Centre Receives $8.4 Million Dollars

The federal government is investing more than $8.4 million through the Green and Inclusive Community Buildings program to renovate the Paul-Émile-Lépine Community Centre in L’Île-Perrot, Quebec. Work includes a complete roof overhaul, replacement of exterior doors and windows, wall and attic insulation, washroom renovations, repairs to exterior cladding, replacement heating systems, a new French drain, and foundation waterproofing. The project will also add universal access features for people with limited mobility and visual impairments. The upgrades are intended to improve energy performance, accessibility, and the building’s capacity to support community services.

Northern New Brunswick Harbours Receive Construction and Renewal Work

Fisheries and Oceans Canada announced major work at Pointe-Verte and other northern New Brunswick harbours. The Pointe-Verte project includes advanced planning, rock protection over four existing wharf structures, new floating docks, and reconstruction of the slipway. Updates were also provided for Sainte-Marie-sur-Mer, Le Goulet, Miller Brook, and Grande-Anse. The Sainte-Marie-sur-Mer wharf reconstruction and shoreline protection contract is valued at $12 million, while completed dredging and floating dock work at Grande-Anse was valued at $863,000. The projects draw on the federal commitment of nearly $1 billion over five years for safer, more resilient small craft harbours.