While Grants Office has reported on key winners in the most recent federal budget – including clean energy, innovation, and housing – but there are several more programs discussed during April’s budget release. This article is meant to outline additional programs. The major themes found within the budget include clean
energy, innovation, infrastructure, and housing. In addition, investments made by the federal government range from cyber security and small and medium-sized enterprises to health care and economic development.
INNOVATION
In the 2022-2023 budget, the government of Canada is allocating $750 million to the Canada Global Innovation clusters to continue funding innovation across the country. There are five superclusters in Canada (Digital Technology, Protein Industries, Advanced Manufacturing, Scale AI, and Ocean) and they are accepting members from industry, academia, Indigenous groups, and non-profit organizations. They focus on technology innovation in the areas where Canada has a significant competitive advantage and are designed to help businesses innovate, create jobs and grow Canada’s economy.
Budget 2022 proposes to provide up to $1 billion over six years on a cash basis, starting in 2024-25, to Innovation, Science and Economic Development Canada for the Strategic Innovation Fund. Combined with $500 million drawn from existing program funding, this will provide $1.5 billion in targeted support towards critical minerals projects, with prioritization given to manufacturing, processing, and recycling applications. Support for innovative projects through the Strategic Innovation Fund will complement other proposed investments in the sector, including a proposed $1.5 billion investment in infrastructure.
The Natural Resources Canada and the National Research Council will receive up to $ 144.4 million over five years, starting in 2022-2023, to support research, development, and the deployment of technologies and materials to support critical mineral value chains.
Innovation, Science and Economic Development Canada will receive $45 million over four years, starting in 2022-23 to engage with stakeholders, conduct market analysis, and support projects that will strengthen Canada’s semiconductor industry.
The Canadian Agricultural Partnership provides $600 million each year through its programs, to support agricultural innovation, sustainability, competitiveness, and market development. This program is offered by the federal, provincial, and territorial governments. Additionally, the budget proposes $35 million over five years, starting in 2022-23, to Global Affairs Canada for the CanExport program to help Canadian businesses secure their intellectual
property in foreign markets.
INFRASTRUCTURE
There’s plenty of infrastructure-related activities included within the budget. To improve supply chain infrastructure, Canada has made $603.2 million over five years available to Transport Canada to support supply chain projects through the National Trade Corridors Fund ($450 million) and to develop industry-driven solutions to use data that make Canada’s supply chains more efficient ($136.3 million). The goal of these investments is to help lower prices, make supply chains stronger, improve Canadian businesses’ ability to export their goods and better deliver essential goods to communities near and far.
To date, the Investing in Canada Infrastructure Program has approved more than $20 billion (of $33.5 billion) for over 4,500 projects in communities across the country. Many of the funded projects, however, are reporting construction delays due to the pandemic. Budget 2022 signals the government’s intention to accelerate the deadline for provinces to fully commit their remaining funding under the Investing in Canada Infrastructure Program to priority projects to March 31, 2023. As a measure of fiscal prudence, any uncommitted funds after this date will be reallocated to other priorities.
Territories will still have a March 31, 2025 deadline. Budget 2022 has extended the construction deadline for the Investing in Canada Infrastructure Program (from October 2027 to October 2033). To support this extension, Budget 2022 proposes to adjust the program’s funding profile so that funding is available
when needed. This extension recognizes delays caused by the pandemic and will ensure that provinces and territories can fund priority projects.
High frequency rail has been discussed as a potential to offer climate-friendly transportation and faster, more regular, and more reliable passenger rail service between Toronto and Quebec City—Canada’s busiest travel corridor. The federal government is making use of the expertise of private sector companies for the potential project’s planning and design. Budget 2022 proposes to provide $396.8 million over two years, starting in 2022-23, to Transport Canada and Infrastructure Canada for planning and design steps in support of high frequency rail between Toronto and Quebec City.
The Canada Infrastructure Bank (CIB) was created in 2017 to attract private capital to major infrastructure projects and help build more of the infrastructure that we need across the country.
In 2020, the CIB announced its three-year, $10 billion Growth Plan, which included a goal of helping Canada achieve its emissions reduction targets. Since then, the CIB has identified opportunities to work with private sector and institutional investors to do even more to help Canada reach a net-zero emissions future.
To increase the CIB’s impact, Budget 2022 announces a broadened role for the CIB to invest in private sector-led infrastructure projects that will accelerate Canada’s transition to a low-carbon economy. This will allow the CIB to invest in small modular reactors; clean fuel production; hydrogen production, transportation and distribution; and carbon capture, utilization and storage. These new areas fall under the CIB’s existing clean power and green infrastructure investment areas. The CIB will continue to invest in its public transit, broadband, and trade and transportation investment areas. To accelerate progress to end long-term drinking water advisories and continue addressing critical infrastructure gaps in First Nations communities on reserve. Budget 2022 proposes to provide $398 million over two years, starting in 2022- 23, to Indigenous Services Canada to support community infrastructure on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure.
Budget 2022 proposes to provide Indigenous Services Canada with $173.2 million over ten years, starting in 2022-23, to support the transfer of water and wastewater services in 17 communities to the Atlantic First Nations Water Authority. By putting service delivery into the hands of communities themselves, this first-of-its-kind, First Nations-led initiative will help chart the path to self-determination, while strengthening the management of water and wastewater infrastructure on reserves.
CYBER SECURITY
The Canadian government would like to address cyber security threats. That’s why they will provide $875.2 million over five years. These measures will include:
- $263.9 million over five years, starting in 2022-23, and $96.5 million ongoing to enhance the Communications Security Establishment (CSE) abilities to launch cyber operations to prevent and defend against cyber attacks;
- $180.3 million over five years, starting in 2022-23, and $40.6 million ongoing to enhance CSE’s abilities to prevent and respond to cyber attacks on critical infrastructure;
- $178.7 million over five years, starting in 2022-23, and $39.5 million ongoing to expand cyber security protection for small departments, agencies, and Crown corporations;
- $252.3 million over five years, starting in 2022-23, and $61.7 million ongoing for CSE to make critical government systems more resilient to cyber incidents.
Additionally, the budget proposes to provide $17.7 million over five years, starting in 2022-23, and $5.5 million thereafter until 2031-32 for the Communications Security Establishment (CSE) activities.
The budget proposes $125 million over five years, starting in 2022-23, and 25 million ongoing, for the Research Support Fund to build capacity within post- secondary institutions to identify, assess, and mitigate potential risks to research security.
Budget 2022 proposes a total of more than $8 billion in new funding over five years to strengthen Canada’s contributions to its core alliances: bolster the capabilities of the Canadian Armed Forces, continue to support culture change and a safe and healthy working environment in the Canadian Armed Forces, and reinforce Canada’s cyber security.
SMALL AND MEDIUM-SIZED ENTERPRISES
There are several initiatives for SMEs to explore within the budget. Some key ongoing programs that the budget highlights include Strategic Innovation Fund; the Canada Digital Adoption Program; the Universal Broadband Fund and Jobs and Growth Fund.
Some industries that the budget touches on include mining; semiconductor; health-focused SMEs; agriculture; innovation clusters and climate-focused initiatives. Some initiatives are included below; others are included in other blog posts on our website.
The Coordinated Accessible National Health Network (CAN Health Network) brings together hospital networks and health authorities in nine provinces to procure innovative health care solutions, including investing in made-in Canada technologies. This model shows potential to help deliver better care to
Canadians, help our health technology businesses grow and create good middle class jobs across the country.
Budget 2022 proposes to provide $30 million over four years, starting in 2022-23, to build upon the success of the CAN Health Network, and expand sit nationally to Quebec, the territories, and Indigenous communities.
Budget 2022 proposes to provide up to $30 million over two years, starting in 2022-23, to Environment and Climate Change Canada to administer direct payments to support emissionintensive, trade-exposed small and medium-sized enterprises in Alberta, Saskatchewan, Manitoba, and Ontario (Climate Action Incentive Fund).
HEALTH CARE
Canada has focused on providing dental care for all Canadians, increasing loan forgiveness for doctors and nurses in rural and remote communities and increasing the Canada Health Transfer (which provides cash transfers to provinces and territories to support health care). In addition to those initiatives, there have been several funds established that could be of interest, with a focus on mental health, innovation, and the opioid crisis.
Budget 2022 proposes to provide $30 million over three years, starting in 2022-23, to the Public Health Agency of Canada, for the Centre for Aging and Brain Health Innovation to help accelerate innovations in brain health and aging.
Budget 2022 proposes to provide $20 million over five years, starting in 2022-23, for the Canadian Institutes of Health Research to support additional research on the long-term effects of COVID-19 infections on Canadians, as well as the wider impacts of COVID-19 on health and health care systems.
Budget 2022 proposes to provide $140 million over two years, starting in 2022-23, to Health Canada for the Wellness Together Canada portal so it can continue to provide Canadians with tools and services to support their mental health and wellbeing. The Wellness Together Canada portal complements PocketWell, a free app launched in January 2022 that helps Canadians access free and confidential sessions with social workers, psychologists, and other professionals, as well as other mental health and substance use prevention services from their phone.
Budget 2022 proposes to provide $100 million over three years, starting in 2022-23 to Health Canada for the Substance Use and Addictions Program to support harm reduction, treatment, and prevention at the community level.
ECONOMIC DEVELOPMENT
Right now, there are seven regional development agencies in Canada (Pacific Economic Development Canada; Prairies Economic Development Canada; Canadian Northern Economic Development Agency; Economic Development Agency of Canada for the Regions of Quebec; Atlantic Canada Opportunities Agency, Federal Economic Development Agency for Southern Ontario, and Federal Economic Development for Northern Ontario) and their goal is to help businesses and individuals in their regions by offering customized programs, services, knowledge and expertise.
In the 2022-2023 budget, the Atlantic Canada Opportunities Agency will receive $16 million over two years, starting in 2022- 2023, through the Jobs and Growth Fund to support longterm investments and help stabilize the potato sector and supply chain in Prince Edward Island.
The budget proposes to provide the regional development agencies with $1.5 billion to support Canada’s economic recovery through programs like the Jobs and Growth Fund and the Canada Community Revitalization Fund. The Jobs and Growth Fund will help job creators and the organizations that support them future-proof their businesses, build resiliency and prepare for growth. The Canada Community Revitalization Fund is a national infrastructure program to revitalize communities across Canada. Not-for-profit organizations, municipalities, and other public institutions, and Indigenous communities can apply for funding through this program.
The regional development agencies will receive $2 billion for the Regional Relief and Recovery Fund, which has supported local businesses through Regional Development Agencies during the pandemic.
To help the Indigenous tourism industry recover from the pandemic and position itself for long-term, sustainable growth, the budget 2022 proposes to provide $20 million over two years, starting in 2022-23, in support of a new Indigenous Tourism Fund.
