Ottawa’s building Budget: $280B for projects over five years

Key Takeaways:

• $280B: Total five-year capital-relevant envelopes (accrual basis).
• $450B: Five-year capital total on a cash basis (Budget definition).
• $115B: Infrastructure envelope (5-yr).
• $110B: Productivity & Competitiveness envelope (5-yr).
• $30B: Defence & Security envelope (5-yr).
• $25B: Housing envelope (5-yr).
• Buy Canadian: Federal default to Canadian suppliers “wherever possible.”
• Build Canada Homes: New federal housing delivery agency.
• GST removed: First-time buyers on homes ≤ $1M.

The Whole Story:

Canada’s 2025 federal budget puts capital spending at the centre of economic strategy, committing about $280 billion over five years to project work that ranges from trade corridors to clean grids and housing. The plan’s build-focused architecture sets aside $115B for infrastructure, $110B for productivity and competitiveness, $30B for defence and security, and $25B for housing (five-year horizons, accrual basis).

Capital first

The budget explicitly reframes fiscal planning to prioritize long-lived capital—projects that “change the capacity of the economy”—over day-to-day program spend. It positions construction activity as the delivery arm of Ottawa’s growth, affordability and security agenda, with an emphasis on faster regulatory pathways and crowding in private capital.

Housing and approvals

Ottawa introduces Build Canada Homes, a new federal agency tasked with driving investment and public-private cooperation to accelerate supply. The document also spotlights eliminating GST for first-time buyers on homes at or under $1 million, and sets expectations for mainstreaming advanced construction methods—targeting shorter build timelines and lower costs and emissions.

Infrastructure pipeline

The $115B infrastructure envelope is framed around nation-building assets: trade gateways (ports, airports, rail), clean-power grids/transmission, and critical-minerals-enabling infrastructure. The government underscores fast-tracking “nation-building projects” via streamlined approvals and structured financing in partnership with provinces, territories, Indigenous partners and private investors.

Clean power and industrial buildout

Budget language highlights clean and conventional energy build-out—from nuclear to renewables and hydrogen—paired with grid modernization and transmission. The intent is this: enable large EPC packages and associated civil, electrical and manufacturing work as Canada seeks to become an energy superpower while decarbonizing.

Productivity and costs

A Productivity Super-Deduction appears as a flagship measure within the $110B productivity and competitiveness track, alongside R&D/innovation supports. The goal is to unlock equipment upgrades, factory investment and industrial efficiency—areas with direct implications for construction suppliers, off-site manufacturing and heavy equipment fleets.

Buy Canadian

A new Buy Canadian Policy commits the federal government to select Canadian suppliers by default, wherever possible, using public dollars to strengthen domestic supply chains and scale homegrown innovation. A complementary Defence Industrial Strategy aims to expand domestic defence manufacturing capacity—creating steady workloads for industrial contractors and fabricators.

Labour and training

Defence-side language calls out personnel, training and infrastructure for the Canadian Armed Forces, while the economic narrative emphasizes mobilizing talent “from the skilled trades to advanced technology.” Expect workforce programs to align with the larger capital push, though programmatic details for construction apprenticeships are not elaborated in this summary document.

“The global uncertainty we are facing demands bold action to secure Canada’s future. Budget 2025 is an investment budget. We are making generational investments to meet the moment and ensure our country doesn’t just weather this moment but thrives in it,” François-Philippe Champagne, Minister of Finance and National Revenue. “This is our moment to build Canada Strong and our plan is clear – we will build our economy, protect our country, and empower you to get ahead. When we play to our strengths, we can create more for ourselves than can ever be taken away.”