Highlights from Federal Budget 2024-2025: Impact on Construction Industry
On Tuesday, April 16, the federal government released its 2024-2025 budget with a plan to build a stronger, more sustainable, and more secure Canadian economy.
Statement from the Canadian Construction Association (CCA) —
The federal government’s housing strategy is a long-awaited step forward to build more homes, but significantly more investment is needed to address critical infrastructure needs and the housing crisis, says Canada’s construction industry.
Click here to read the full statement from the CCA on the 2024 federal budget.
Budget 2024 Highlights
The following information is from the Government of Canada’s federal budget 2024 PDF document, which can be accessed in full through this link.
Chapter 1: More Affordable Homes
Building More Homes – Budget 2024 proposes to provide an additional $400 million over four years, starting in 2024-25, to the Canada Housing and Mortgage Corporation, to top up the Housing Accelerator Fund.
Under a new Canada Builds approach, the federal government is offering to partner with provinces and territories that launch their own ambitious housing plans, with federal financing.
The federal government will use all tools available to convert public lands to housing, including leasing, acquiring other public lands for housing, and retaining ownership, whenever possible.
Budget 2024 proposes to provide $5 million over three years, starting in 2024-25, to support an overhaul of the Canada Lands Company to expand its activities to build more homes on public lands.
To build more rental apartments, faster, Budget 2024 announces an additional $15 billion in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program, bringing the program’s total to over $55 billion.
Chapter 2: Lifting Up Every Generation
A Fair Chance for Millennials and Gen Z – Budget 2024 proposes to provide $351.2 million in 2025-26, for the Youth Employment and Skills Strategy. These investments in youth job opportunities include $200.5 million in 2025-26, for Canada Summer Jobs to provide well-paying summer job opportunities, including in sectors facing critical labour shortages, such as housing construction.
Chapter 4: Economic Growth for Every Generation
A Strong Workforce for a Strong Economy – Budget 2024 proposes to provide $90 million over two years for the Apprenticeship Service to help create placements in the residential construction sector.
Chapter 5: Safer, Healthier Communities
Infrastructure for Growing Communities – Federal infrastructure funding will continue to grow over the coming years, with a projected peak of $11.3 billion in 2027-28. In total, the federal government expects to provide $57.3 billion in support of infrastructure projects across the country from 2023-24 until 2028-29.
The Green and Inclusive Community Buildings program is providing $1.5 billion to support green and accessible retrofits and upgrades of existing public community facilities, as well as the construction of new publicly-accessible community facilities across Canada.
Additional Resources
Federal Budget 2024 Webcast
- What will the federal budget mean for you? EY Canada’s seasoned Tax leaders share their insights and perspectives on the 2024 federal budget and its potential impacts on individuals and businesses.
- Watch now: click here to watch this video on-demand.
2024 Federal Budget Highlights
- For more insight into what the changes are and how they might impact you and your business, read MNP’s 2024 federal budget summary.
- Read now: click here to read MNP’s federal budget summary.
Federal Budget 2024: Implications for Atlantic Canada
- The Atlantic Economic Council’s budget analysis highlights the major initiatives and their implications for Atlantic Canada.
- Read now: click here to read the Atlantic Economic Council budget analysis.
- Please note, this is a member-only publication.