Question Period Note: Arctic Infrastructure Fund

Arctic Infrastructure Fund

• Reliable transportation infrastructure in the Arctic is essential to community well-being, economic development, emergency response and national defense.

• Budget 2025 included targeted investments to strengthen trade and transportation corridors, expand access to global markets, and support the goal of doubling non-U.S. exports over the next decade.

• Central to this effort is the Government of Canada's new $1 billion Arctic Infrastructure Fund, which will invest in ports, runways, roads, and other trade-enabling assets across the Arctic and North.

• These investments will improve community resupply reliability, unlock economic opportunities, and strengthen Canada’s Arctic presence, resilience and security while delivering both civilian and strategic military benefits.

• The fund will prioritize investments in dual-use infrastructure that support defence priorities, contribute to NATO defence spending commitments, improve connectivity, and access to domestic and foreign trade routes between Arctic regions, southern Canada, and other countries.

• By investing in resilient, modern infrastructure, Canada will fuel sustainable growth, unlock our country’s long-term economic potential, foster sovereignty, and secure prosperity for generations to come.

The Arctic Infrastructure Fund (AIF) was announced through Budget 2025 with a plan to invest $1 billion over four years (2025-26 to 2028-29) in projects that build and expand strategic dual-use- civilian/defence transportation infrastructure in Canada’s Arctic.

By addressing gaps and current constraints facing transportation, investments will help improve affordability for Northern and remote communities and increase access to healthcare and services. AIF investments will reflect priorities identified by Northerners. These investments represent strategic commitments to Canada's long-term economic resilience helping build prosperity, independence, and opportunities for Northerners.

The fund will support projects of all scales, including deep-water ports, sealift infrastructure, airstrips, runways, all-season roads, highways, and bridges that directly support dual-use capabilities for defence and civilian/industry purposes.

Supporting Facts and Figures

A trade corridor is a geographically defined route or network that facilitates the efficient and resilient movement of goods, services and people between production areas, domestic markets and international trade markets.

Canada’s transportation supply chains are a mix of public and private sector owned and operated assets, which form a complex and highly integrated network. Within this system, key trade corridors that operate with distinct regional, operational and market dynamics, which include the Pacific, Prairies, Quebec-Windsor and Great Lakes and St. Lawrence Seaway, Atlantic, and the North.

• The North is considered an emerging trade corridor.
• The AIF was launched on March 4, 2026, with applications for Stream 1 due on May 22, 2026 and Stream 2 on June 5, 2026.
• On March 12, 2026, the Prime Minister announced two Arctic projects to be supported through the AIF: the Rankin Inlet Airfield Rehabilitation Project, and the Inuvik Airport Runway and Access Road Work Upgrades, both of which will provide dual use capabilities.