By Sid Aubeeluck, Grants Development Associate (Canada)
Introduction
Canada’s North continues to embody a place of resilience and determination, where communities are driving bold development, celebrating vibrant cultures, and forging a sustainable future.
Yet even with billions in federal funding invested over the years, communities across Nunavut, Yukon, and the Northwest Territories still face economic uncertainty, limited infrastructure, and persistent barriers to growth, raising a critical question: Is grant funding truly empowering these communities to build the sustainable future they are striving for?
A recent evaluation by the Canadian Northern Economic Development Agency (CanNor) sheds light on this debate. It reviews three flagship programs: IDEANorth, the Northern Business Relief Fund (NBRF), and the Northern Isolated Community Initiatives Fund (NICI), between 2019 and 2023. While the report highlights successes such as jobs retained during the pandemic and impressive leveraging of investment dollars, it also surfaces persistent challenges that limit the programs’ long-term effectiveness and overall impact.
This article will explore these 3 CanNor programs and investigate their outcomes, considering how grant funding can be better leveraged to further support a resilient and self-sustaining future for Canada’s North.
Understanding the North: Economic Realities and Regional Challenges
Canada’s northern territories (Nunavut, Yukon, and the Northwest Territories) are home to around 125,000 people, nearly half of whom are Indigenous, spread across more than 40% of Canada’s landmass. The region offers immense promise, with opportunities in sectors such as natural resource extraction, renewable energy, fisheries, and Indigenous tourism. It also boasts a young and increasingly skilled population, as well as a growing appetite for community-led innovation.
Yet the path to long-term prosperity remains difficult. The North continues to face structural barriers that limit economic diversification and community well-being. Vast distances, harsh climates, and low population density contribute to a significant infrastructure gap, leaving many communities without reliable transportation networks, broadband connectivity, or energy systems. The economy remains heavily reliant on resource extraction, making it vulnerable to global commodity swings and boom-and-bust cycles. High costs of living and doing business, limited access to capital, and a shortage of skilled labour further restrict growth. At the same time, food insecurity remains a serious and ongoing concern, particularly in remote and Indigenous communities where nutritious, affordable food is extremely difficult to access.
To help northern communities overcome these persistent challenges, the Canadian Northern Economic Development Agency (CanNor) has introduced three central grant programs: the Inclusive Diversification and Economic Advancement in the North (IDEANorth) program, the Northern Business Relief Fund (NBRF), and the Northern Isolated Community Initiatives Fund (NICI). Let us take some time to briefly explore what each program offers.
The IDEANorth Program
Launched in 2019-20, the IDEANorth program is CanNor’s main flagship and ongoing initiative to drive sustainable economic development across Nunavut, Yukon, and the Northwest Territories. Replacing the earlier Strategic Investments in Northern Economic Development (SINED) program, IDEANorth received a significant boost of $75 million over five years from Budget 2019, expanding CanNor’s ability to invest in foundational economic infrastructure, sector growth, and capacity building.
IDEANorth supports a wide range of projects, including business scale-up, innovation, small-scale infrastructure, and large economic infrastructure studies. Its goal is to position Northerners to fully participate in Canada’s innovation economy. The program is designed with flexibility in mind, offering both grants and repayable contributions tailored to the specific needs of each project and recipient.
Between 2019 and 2023, IDEANorth funded 235 projects, leveraging $2.59 from other sources for every dollar invested. Recipients reported growing their businesses, creating and maintaining jobs, and strengthening local partnerships. Notable initiatives include feasibility studies for hydroelectric power and broadband expansion that promise to enhance connectivity and economic viability in remote regions.
IDEANorth remains active and vital, with planned funding of over $30 million for the 2025-26 fiscal year. It continues to be a core tool for fostering economic diversification, innovation, and resilience, key to building a strong, sustainable future for Canada’s North.
| o Timing | o Description |
| o Short-term Outcomes | o Territorial economic growth and capacity are supported
o Gaps in territorial small-scale economic infrastructure are addressed o Increased readiness to address territorial foundational infrastructure gaps o Partnerships established with Northern governments and organizations o Businesses are supported to grow |
| o Medium-term Outcomes | o Investments to advance territorial economic growth and sector development contribute to increasing local or regional economic development activity
o Investments in small-scale economic infrastructure contribute to increasing local or regional economic development activity o Pre-construction readiness activities are used to advance foundational infrastructure projects |
| o Long-term Outcomes | o Foundational investments in key sectors of the territorial economies contribute to enhanced sectoral growth
o Strong, dynamic, diverse, innovative, and inclusive territorial economies for the benefit of Northerners and all Canadians |
[TABLE]
The Northern Business Relief Fund
The Northern Business Relief Fund (NBRF) was established as a swift and targeted response to support small and medium-sized businesses impacted by the COVID-19 pandemic across Canada’s northern territories.
Launched in 2020, the program provided over $20 million in emergency grant funding to help businesses manage operational costs, retain employees, and stabilize economic activity amid widespread disruptions caused by public health restrictions and supply chain challenges. The program covered a range of sectors, including retail, tourism, services, and Indigenous-owned enterprises, reflecting the diverse economic landscape of the North. By offering timely, accessible funding, NBRF played an essential role in maintaining jobs and preserving business continuity in remote and vulnerable communities where economic resilience is especially vital.
Overall, the Northern Business Relief Fund helped cushion the immediate economic shocks of the pandemic, reinforcing the importance of tailored support programs in sustaining Northern businesses through periods of crisis.
The Northern Isolated Community Initiatives Fund
The Northern Isolated Community Initiatives Fund (NICI) supports community-led projects that enhance food security and strengthen regional food systems in Canada’s northern and isolated communities. By promoting local food production, processing, and distribution, the fund aims to reduce food insecurity while fostering sustainable economic development.
In the 2023–24 fiscal year, NICI allocated $2.5 million to eight Indigenous and non-Indigenous community-led initiatives across the territories. These projects addressed various aspects of food security, including the development of local food infrastructure, support for small and medium-sized enterprises (SMEs) in the food sector, and the implementation of innovative solutions to nutritional challenges, such as improving access to fresh, affordable produce in remote communities where transportation and storage pose significant obstacles. The Northern Food Innovation Challenge (Stream 2 of NICI) received $2.5 million to scale up innovative food systems projects and coordinate knowledge dissemination opportunities.
NICI remains an ongoing program, with planned funding of $2.5 million for the 2024–25 fiscal year. This continued investment underscores the government’s commitment to supporting northern communities in building resilient and self-sustaining food systems.
Program Challenges and the Path Ahead
Despite short-term gains, IDEANorth, NBRF, and NICI face common obstacles that limit long-term impact. These include:
- Short Project Timelines
Many projects operated within brief funding cycles that limited their ability to build lasting economic capacity and achieve sustainable change. Extending project timelines and offering multi-year funding would enable deeper planning and more effective implementation, fostering durable outcomes.
- Limited Long-Term Performance Tracking
While immediate outputs like jobs saved were tracked, there was insufficient data on long-term outcomes, making it difficult to measure sustained benefits. Strengthening performance measurement systems and improving data collection are essential to better assess ongoing impact and guide future program enhancements.
- Administrative and Capacity Barriers
Complex application and reporting requirements created challenges, especially for smaller, Indigenous, and remote communities that often lack grant-writing expertise. Simplifying application processes and providing targeted capacity-building support can broaden access and allow more communities to fully benefit from federal funding.
Moreover, each program faced its own unique set of challenges that impacted its effectiveness and reach.
- IDEANorth
Focused on economic diversification and innovation, IDEANorth faced criticism for not adequately addressing foundational structural challenges such as high living costs and limited infrastructure. While economic and sector development are important, these efforts can struggle without a solid base, much like trying to cook a great meal without the necessary ingredients. Greater emphasis on investments in essential infrastructure like affordable housing, reliable transportation, and further broadband access will be critical to unlocking sustainable growth.
- Northern Business Relief Fund
As a short-term pandemic relief program, NBRF played a crucial role in supporting businesses during an unprecedented crisis. To build on this success, implementing ongoing support mechanisms and establishing clear follow-up processes can help businesses smoothly transition from emergency relief toward sustained recovery and growth. Ensuring that pandemic support contributes to long-term resilience aligns with the broader goal of fostering sustainable development across Northern communities.
- Northern Isolated Community Initiatives Fund
Increasing funding levels and improving project delivery timelines would significantly enhance NICI’s reach and overall effectiveness. A larger funding envelope would allow more isolated and vulnerable communities to access critical resources, especially for projects focused on food security, local infrastructure, and community resilience. Timely delivery is equally important; delays can stall momentum, increase costs, and reduce community trust in the program. Faster, more predictable funding cycles enable communities to plan effectively, mobilize local expertise, and implement initiatives when they are most needed. Together, these improvements would help NICI better fulfill its mandate to support isolated communities in building sustainable, self-reliant economies.
Conclusion
CanNor’s initiatives—IDEANorth, NBRF, and NICI—have played a key role in empowering northern communities, supporting local businesses, investing in infrastructure, and advancing food security. These programs have helped answer the question at the heart of this article: Yes, grant funding is empowering these communities and continues to do so! But there is still more to be done. Persistent challenges such as short funding timelines, limited long-term tracking, and uneven access remain barriers to deeper, lasting impact.
To build on this progress, Canada must maintain and strengthen its commitment to long-term, community-led development through stable funding, improved outreach, and greater support for capacity-building. This is not simply a matter of support; it is a strategic investment in a region with immense potential. With sustained and thoughtful funding, northern communities can continue advancing toward a resilient, inclusive, and self-sustaining future.
SOURCES:
https://www.north.gc.ca/eng/1729012641999/1729012675565
https://opencanada.org/changing-face-economic-development-canadian-north/
https://www.cannor.gc.ca/eng/1351104567432/1351104589057
https://www.rcaanc-cirnac.gc.ca/eng/1560523306861/1560523330587
