Federal budget delivers $1B Arctic Infrastructure Fund, though future of some social programs unclear

A new Arctic Infrastructure Fund is one of the big-ticket items for northerners in the 2025 federal budget, though the 493-page document provides few details on the future of some northern social programs.

Finance Minister François-Philippe Champagne presented his first budget Tuesday in Ottawa. It calls for some $141 billion in new federal spending over the next five years, which will partially be offset by some $51.2 billion in cuts and other savings.

The government is proposing $1 billion over four years for Transport Canada to invest in major transportation projects in the North, including airports, seaports, all-season roads, and highways, and they'll be for both civilian and military use. 

“Dual use infrastructure investments in the North will reliably meet both military and local needs, and the government recognizes that Inuit, First Nations, and other communities are best placed to identify community needs,” the budget document reads.

Crown-Indigenous Relations and Northern Affairs Canada and the Canadian Northern Economic Development Agency will also receive more than $67 million to help speed up regulatory processes, which includes consultations with Indigenous governments and organizations.

Shortly after delivering the budget, Champagne stated inside the House of Commons the Arctic Infrastructure Fund will expand possibilities and opportunities in the North "like never before".

"We're going to make historic investments in Canada's North. This is a great moment for the country," he said.

The budget also includes a list of policy actions the government has taken since its 2024 fall economic statement, which shows funding commitments until 2030.

There are several programs listed in the budget that northerners may benefit from, including funds for northern food security, maintaining access to justice in the North, and funding for the Northern Projects Management Office. The document also takes note of the continued support for Jordan’s Principle and the Inuit Child First Initiative.

Those programs have funding for the 2025-2026 year, though it’s unclear how much money – if any – they will receive beyond that date. 

However, it is clear that some Indigenous programs across the country will face some cuts. Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada will both face a two-per-cent budget cut — translating to a total cut of almost $2.3 billion by spring 2030.

To improve health-care, the budget notes an "intention" for a comprehensive assessment of the needs in the North, with the goal of identifying ways to increase accessibility and reduce medical travel costs. However, it is also unclear what funds will be committed to this.

Prime Minister Mark Carney has touted a new “climate competitiveness strategy,” though the goal to plant two billion trees by 2031 nationally is not part of that plan anymore and is now being axed.

That will affect the N.W.T. and Yukon, which in 2022 and 2023 respectively, signed agreements in principle with the federal government to be part of that program.