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.
Today, while touring KF Aerospace's facility in Hamilton, Ontario, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, 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-sized Canadian businesses to help them access opportunities more easily.
This past September, the Right Honourable Mark Carney, Prime Minister of Canada, announced a new Buy Canadian Policy, moving the federal government from "best efforts" to a clear obligation 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.
The government is taking action to ensure federal spending supports Canadian jobs and industries such as aerospace. By prioritizing Canadian suppliers and products in federal spending, the government will reinforce Canada's industrial strength, ensuring Canada's economy continues to grow on a solid foundation. Requiring local content in federal procurements will benefit communities such as Hamilton, as having better access to these procurements will support Canadian workers and businesses across the country.
Through Budget 2025, the government proposes to do the following:
- Provide $98.2 million over five years, starting in 2026-2027, 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 the City of Québec.
- Provide $79.9 million over five years, starting in 2026-2027, to Innovation, Science and Economic Development Canada to support the previously announced Small and Medium Business Procurement Program. The implementation of the Buy Canadian Policy, coupled with this support, will spur domestic demand and create opportunities for economic growth in areas of strategic interest to the country. This will ensure that Canadian small and medium-sized enterprises (SMEs) 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 to come 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-making Canada its our own best customer, protecting Canadian businesses and empowering our workers with high-paying careers that build prosperity at home.
