Focus on nation-building: how the 2026 Spring Economic Update advances Carney’s major projects agenda

Carney’s newly secured majority Liberal government delivered its first Spring Economic Update, Canada Strong for All, having re-calibrated the federal financial cycle last fall. Delivered on the anniversary of the federal election, the 2026 Spring Economic Update presents new spending in two parts, bolstering the nation-building agenda and introducing new affordability measures.

Aligning with Carney’s nation-building agenda, the balance of the update focuses on new measures and policy commitments to support advancing major projects and attracting investment. The update advances new spending and policy proposals focused on four main pillars: a new sovereign wealth fund, labour and skills training, housing affordability and community safety.

The show piece of the update being the new “Canada Strong Fund,” a sovereign wealth fund, making up $25 billion of the $37.5 billion in proposed new spending. Though scant on details, a new Crown corporation will be established to manage the fund, which will provide Canadians a vehicle to invest in Canadian projects and companies. A transition office will be stood up to navigate establishing the fund, with more details promised in the months ahead.

In support of the major projects’ agenda, the Spring Economic Update advances $6 billion in measures designed to bolster Canada’s skilled trades labour force. Dubbed Team Canada Strong, a new plan will be launched to recruit, train, and hire 80,000 to 100,000 new Red Seal skilled trades workers by 2030-31. This includes incentives for apprenticeships, income top ups during training, and apprenticeship completion bonuses.

While opposition parties are unified in their criticism of the economic update, the stakeholder response is mixed. The supports for skilled trades are being applauded by labour and training institutes while the limited measures on affordability and support for trade-impacted sectors are being couched as a missed opportunity.

Key measures in the Spring Economic Statement:

• Artificial Intelligence (AI) for All strategy: The update outlines that the forthcoming strategy will include the following six pillars: Protecting Canadians and Safeguarding our Democracy; Empowering Canadians; Powering AI Adoption for Shared Prosperity; Building the Canadian Sovereign AI Foundation; Scaling Canadian Champions; and, Building Trusted Partnerships and Global Alliances.
• NATO Defence Spending Commitment: Reiterates that Canada is on a path to meet the NATO Defence Investment Pledge of investing 5 per cent of GDP by 2035. Proposes $103.8 million over five years, and $22.3 million ongoing, to establish and operate the Defence Investment Agency as a stand-alone entity.
• Support for Ukraine: $2.0 billion over three years to support Operation UNIFIER.
• Financial crimes: $352.7 million over five years and $82.1 million ongoing to the Financial Crimes Agency; new Ministerial Directive powers to safeguard the integrity of the financial system and expand the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) ability to oversee Money Services Businesses.
• Sport System: $755 million over five years to Canada’s sport system, and $118 million ongoing, including $50 million to hosting, $45 million to support athletes ($8 million ongoing), and $660 million to National Sport Organizations ($110 million ongoing).
• Indigenous Services Canada: $601 million in 2026-27 to support culturally relevant elementary and secondary education on reserve that meets the needs of students. $700 million over six years to support Indigenous communities to implement their own solutions to protect children and families.
• Expanding the Carbon Capture Utilization and Storage Investment Tax Credit to include Enhanced Oil Recovery.
• Launching a Whole-of-Government Competition Plan to strengthen productivity by removing inefficient government policies.
• Homebuilding: $41.9 million over five years to improve the regulatory framework for factory-built housing and amending insurance rules for multi-unit residential properties.
• Homebuyers Plan: to support affordability, the update proposes to extend the payback period from 2 years to 5 years for the first-time Homebuyers Plan.
• CPP contributions: reduction in the contribution rate in the base CPP from 9.9 per cent to 9.5 per cent, effective January 1, 2027.
• Buy Canadian Policy: launch a new Small and Medium Business Procurement Program later this spring to make it easier for Canadian firms to compete and win in federal procurements.
• International climate financing: $3.0 billion + $167.9 million over five years for climate-related supports to vulnerable countries.

Despite new spending commitments, the update seeks to demonstrating the federal government’s economic progress since being elected, while maintaining alignment with Carney’s economic and policy agenda put forth in Budget 2025. That is, a focus on nation-building, infrastructure, bureaucratic operational efficiency, and economic productivity.

With the recently clinched majority mandate, this Spring Economic Update is expected to rapidly advance through the legislative process to passage, with an effort to reset the House of Commons committees to reflect the Liberal majority well underway. Committee control will be needed to enact the update, given strongly critical responses across all opposition parties.

Despite this newly secured political stability, with three-and-a-half years remaining in this mandate, the federal government will be exceptionally challenged to deliver progress on its agenda. Already, pressure is mounting to demonstrate gains—as evidenced by the significant portion of the Spring Economic Update dedicated to profiling achievements to date.

Even when aligned with the government’s agenda, engaging at this time requires focus and turn-key proposals along with deliberate, methodical government relations. Layering upon an ambitious agenda, the Spring Economic Update proposes new structures and processes that will add to the complexity—inside and outside of government.

NATIONAL’s team of pan-Canadian Public Affairs experts are ready to support companies navigating this environment with customized and integrated engagement plans to ensure you achieve your goals.