Canada's 2025 Federal Budget Infrastructure and Development Funding

planned

Canada's 2025 federal budget allocates $450 billion toward new infrastructure and development projects over five years, marking a shift from operational spending to capital investment. Key initiatives include the Productivity Super-deduction tax incentive for commercial real estate developers, $13 billion for Build Canada Homes to double annual housing construction, expansion of the Canada Mortgage Bond program to $80 billion annually for multifamily construction, and the $51 billion Build Communities Strong Fund to address infrastructure bottlenecks in water, wastewater, roads, and transit. The budget also includes a $5 billion Trade Diversification Corridors Fund for port, rail, and airport infrastructure, and $6.6 billion for defence-related domestic production and procurement, focusing on industrial land, office clusters, and digital infrastructure.