Canada Boosts Investments to Strengthen Industry

Federal Economic Development Agency for Southern Ontario

The Government of Canada is building the strongest economy in the G7 - an economy rooted in Canadian workers, Canadian materials, and Canadian innovation. As global trade becomes more uncertain, we are choosing to build our strength at home.

In September, the Prime Minister, Mark Carney, announced a new Buy Canadian Policy, moving the federal government from "best efforts" to a clear objective to buy Canadian. The policy will ensure that government procurement focuses on made-in-Canada products, strengthens domestic supply chains, supports local jobs, and keeps public investment circulating in our economy.

Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) outlined nearly $186 million in new funding from Budget 2025 to fully implement the Buy Canadian Policy. The funding will ensure the policy delivers lasting results for Canadian businesses and workers - building capacity and increasing competition at home, streamlining processes, and better supporting small and medium Canadian businesses to help them access opportunities more easily.

Through Budget 2025, the government proposes to:

  • Provide $98.2 million over five years, starting in 2026-27, and $9.8 million ongoing, to Public Services and Procurement Canada, as well as $7.7 million over three years to the Treasury Board Secretariat, to implement the Buy Canadian Policy across all federal departments, agencies, and Crown corporations - such as VIA Rail and Alto, which is responsible for Canada's new high-speed railway between Toronto and Québec City.
  • Provide $79.9 million over five years, starting in 2026-27, to Innovation, Science and Economic Development Canada to support the previously announced Small and Medium Business Procurement Program. The program will create dedicated procurement streams and navigation support for Canadian small and medium-sized enterprises (SMEs) so they can access federal contracts and compete on a level playing field.

The policy will enter into force this month and initially apply to defence, construction, and other strategic procurements, with full implementation by spring 2026. It will extend to infrastructure spending and other federal funding streams, ensuring that as much as $70 billion in additional public investment supports Canadian-made products and services.

The government is on a mission to build Canada strong through major infrastructure projects, a modern defence industry, and millions more homes. Through the new Buy Canadian Policy, we are making government a force for nation-building - becoming our own best customer, protecting Canadian businesses, and empowering our workers with high-paying careers that build prosperity at home.

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