Feds launch pair of funds to strengthen trade corridors and Arctic sovereignty 

The Government of Canada announced the launch of the calls for proposals for both the $5 billion Trade Diversification Corridors Fund and the $1 billion Arctic Infrastructure Fund.

“A strong and connected Canada is essential for our prosperity, for the well-being of our communities, and for our national security. With the launch of the Trade Diversification Corridors Fund and the Arctic Infrastructure Fund, we are making the long-term, strategic investments that will strengthen supply chains, unlock access to global markets, grow our economy, and ensure communities in the North and across Canada have the infrastructure they need to thrive,” said Steven MacKinnon, Minister of Transport.

Trade Diversification Corridors Fund

The Government of Canada will make strategic investments from submitted proposals that align with the following objectives:

• Increase corridors’ systems-based trade and transportation infrastructure capacity to support the diversification of Canada’s international trade, including as it assists in diversifying trade to global markets, beyond the United States;
• Address costly congestion that is hindering Canada’s economic growth; and
• Address trade-enabling transportation infrastructure gaps where there are deficits impeding national or regional growth.

The Trade Diversification Corridors Fund features three funding streams, all of which are open:

Stream 1: Strengthening Canada’s Core Trade Corridors through a Systems-Based Approach (Invitation‑Based)

Targets high-impact projects that diversify trade through Canada’s core trade corridors. It will use a systems-based approach, which entails targeting opportunities where bundles of projects could be advanced as an integrated package to maximize trade diversification benefits.

Stream 2: Unlocking Opportunities and Connectivity Through Collaborative Trade Corridor Solutions (Targeted Call)

Targets collaborative, multi-stakeholder solutions to resolve specific issues that are inhibiting Canada’s ability to grow and diversify trade through key trade corridors. Applicants will be invited to submit proposals to address one or more of the following issues:

1. Enhancing intermodal capacity to increase trade with non-United States markets, including potentially through inland ports.
2. Optimizing existing transportation assets to enable trade diversification to the core trade corridors to support overseas exports.
3. Increasing transportation capacity for bulk commodity exports.

Stream 3: Supporting Regional Growth (Open Call)

Targets projects that address trade-enabling transportation infrastructure gaps that are impeding regional growth.

Arctic Infrastructure Fund

Eligible partners, including Arctic and northern communities, territorial and Indigenous governments and organizations, and industry, are invited to submit proposals for infrastructure initiatives that will:

• strengthen defence readiness and Canada’s ability to operate in the Arctic;
• improve transportation links that enable economic development and access to domestic and global markets; and
• enhance community connectivity, and access to essential goods, services, and emergency response.
• advance Indigenous reconciliation, including recognizing that First Nations, Inuit and Métis are best placed to identify their community needs.

The Arctic Infrastructure Fund features two funding streams, both of which are open:

Stream 1: Dual‑Use Transportation Infrastructure that Supports Defence and Community/Civilian Requirements in the Arctic (Invitation‑Based)

Supports large-scale, defence‑ and civilian‑serving projects that support two or more of the Arctic Infrastructure Fund objectives and that advance key transportation corridors to close longstanding northern transportation gaps, which will improve regional connectivity, promote economic development, and bolster defence operational readiness in the Arctic and Canada’s North.

Stream 2: Investing in Industry and Community‑Led Transportation Infrastructure with Dual-Use Benefits (Open Call)
Supports community or industry‑driven projects that address one or more of the Arctic Infrastructure Fund objectives and that seek to improve regional connectivity, strengthen supply chains, enhance safety, and support defence needs. Projects can serve as enabling links to larger corridor developments.

Eligible projects must be located in the Yukon, Northwest Territories, Nunavut, Nunavik, or Nunatsiavut.

Both programs will use a mix of non‑repayable, conditionally repayable, and unconditionally repayable contributions to stretch federal dollars further and leverage financing opportunities, including collaboration with the Canada Infrastructure Bank. Full program criteria, application guidance, and timelines are available on Transport Canada’s website.

“Investing in Arctic infrastructure is fundamental to building a secure, connected, and resilient North. Modern, reliable transportation networks reinforce Canada’s capacity to operate across the region, improve readiness, and support the Defence Team members who serve there,” said David J. McGuinty, Minister of National Defence. “These investments are about people, ensuring Northern and Indigenous communities have the infrastructure required to thrive and remain connected. By working in partnership with territorial governments, Indigenous governments and organizations, and industry, we are establishing a strong foundation for enduring prosperity and security in the Arctic for the benefit of all Canadians.”

Featured image: On March 3, 2026, Steven MacKinnon, Minister of Transport, announced the launch of the calls for proposals for both the $5 billion Trade Diversification Corridors Fund and the $1 billion Arctic Infrastructure Fund. (Transport Canada)