A plan to grow the nation’s economy and make life more affordable was introduced in Canada’s federal budget 2022 on Thursday, April 7, 2022, and it will allocate billions while reducing the nation’s debt. Business owners in Canada should be aware of these key changes in this blog.

“Canada has a proud tradition of fiscal responsibility. It is my duty to maintain it—and I will. So now is the time for us to focus—with smart investments and a clarity of purpose—on growing our economy. That is what our government proposes to do. And this is how we propose to do it.” -The Honourable Chrystia Freeland, P.C., M.P. Deputy Prime Minister and Minister of Finance

A number of government funding programs discussed in the federal budget for 2022–23 are aimed at growing the economy, fostering sustainability, and making Canada more affordable.

Investing in the Canadian Economy

The economy of Canada is only now emerging from the COVID-19 pandemic only to encounter new challenges in growth in comparison with our global neighbours. Canadians can catch up in the race for growth on the global stage thanks to a new program in the Federal Budget 2022. There are also challenges in supply chains and logistics for Canada, causing both internal and external delays in the delivery of goods. In order to mitigate these challenges, the government has focused heavily on infrastructure and supply chain management programs.

Growth for Canadian Businesses
  • In the next five years, $15 billion will be devoted to the creation of the Canada Growth Fund (CGF), which will function as an investment vehicle at arms length from the federal government. As part of the CGF, private sector investment will be sought to achieve crucial policy goals such as:
    • Achieving climate goals and reducing emissions;
    • Improving exports and creating new technology as well as increasing low-carbon initiatives;
    • Streamlining supply chains in critical industries.
  • To reduce travel times between Toronto and Quebec, $396.8 million will be put toward high-frequency rail options for Toronto and Quebec; and

$16 million through the Jobs and Growth Fund towards long-term investments that will support the growth and efficiencies of the PEI potato industry and supply chain.

  • Supporting the development of essential mineral supply chains with $1.5 billion over seven years;
  • Over five years, $79.2 million dollars will be devoted to providing public access to mineral exploration data sets by National Resources Canada (NRC);
  • $1 billion over six years (starting in 2024/25) to the Innovation, Science and Economic Development Canada (ISEDC) for the Strategic Innovation Fund (SIF)to support projects in manufacturing, processing, and recycling applications to improve supply chains; and
  • A total of $144.4 million will be invested over five years in research and development on technologies and materials supporting critical mineral value chains.

Improving Supply Chains

  • $450 million over five years for the National Trade Corridors Fund which will help reduce barriers for the movement of goods across Canada via transportation networks;
  • An investment of $136.3 million over five years for government programs aimed at improving supply chain efficiency; and
  • By eliminating unnecessary red tape, $16.9 million over five years will be spent to streamline cargo processes.


Investing $45 million over four years in photonics research, pilot programs, and market analysis projects to boost Canada’s semiconductor industry. The intention is to limit Canada’s reliance on other countries and avoid other semiconductor shortages in the future.

Health Tech

$30 million over four years to invest in Canadian small and medium businesses that advance health technologies. Projects such as research and development, scaling, and more will be invested in to improve upon the success made by CAN Health Network.

Innovation Clusters

$750 million will be allotted towards the Canada Global Innovation Clusters to continue funding innovation across the country. Climate change disruptions and supply chain issues will be addressed through the use of this funding, which will expand support across the country.

Intellectual Property

  • A program that will help Canadian researchers and students enhance their innovation processes will receive $48,8 million over five years; and
  • $35 million for the CanExport program to assist Canadian companies as they attempt to expand their products to other markets in a secure way.


  • $160 million over five years towards increasing security for research initiatives in postsecondary institutions through a program called the Research Support Fund; and
  • To continue to support and accelerate the scholarships and fellowships for Black researchers within the Canadian community, the government has allocated $40.9 million to federally funded councils.


The Indigenous Tourism Fund will provide $20 million over two years to help Indigenous communities reliant on tourism deal with the challenges posed by the COVID-19

A Cleaner Canada

By investing in government funding programs that will drive a cleaner Canada tomorrow, the Canada Budget 2022 places a strong focus on sustainability for the future. Canadian businesses and the nation as a whole will benefit from investments in electric vehicles, clean energy, and sustainable agriculture.

Electric Vehicles

  • The Incentives for Zero-Emission Vehicles (iZEV) program will receive $1.7 billion over five years. Currently, the initiative is being expanded to include more vans and trucks, making ZEVs more affordable for the general population;
  • The government of Canada has invested $500 million in ZEV charging centers across the country to allow people to drive from coast to coast when charging electric vehicles;
  • $33.8 million over five years for testing and research and development for a larger refueling infrastructure;
  • To ensure that more remote communities have access to charging infrastructure, $400 million will be allocated over five years to the Zero-Emission Vehicle Infrastructure Program (ZEVIP);
  • $547.6 million over four years for purchase incentives for buyers of ZEVs;
  • $33.8 million over five years towards generating a new platform that will allow for long-haul ZEVs to be improved via research and development programs; and
  • $199.6 million will be granted towards rebranding the Green Freight Assessment Program to the Green Freight Program and providing new funding to help businesses retrofit their fleets to meet upcoming national priorities.

Sustainable Agriculture

  • $329.4 million will be provided over six years to significantly increase the size of the Agricultural Clean Technology Program which will assist in the agricultural challenges being faced by climate change by improving the technologies available for Canadian agri-food businesses so they may remain competitive;
  • $469.5 million over six years towards the Agricultural Climate Solutions – On-Farm Climate Action Fund to further assist in combatting the negative impacts of climate change on the agriculture sector;
  • A total of $150 million will be allocated to the Resilient Agriculture Landscape Program, which will help agriculture businesses build carbon sequestration systems and other beneficial practices for the environment; and
  • $100 million over six years to post-secondary institutions to help improve agriculture tech and practices with the hope of achieving a net-zero agriculture sector.


  • $2.2 billion over seven years for the Low Carbon Economy Fund (LCEF) to support projects that reduce GHG emissions; and
  • $32.2 million over two years to a project called Atlin Hydro Expansion, to improve provisions of electricity to Yukon and reduce GHGs.

Reducing Emissions

  • There will be an investment tax incentive of $2.6 billion over five years designed to encourage a faster transition to lower greenhouse gas emissions for the entire country by encouraging the rapid adoption of carbon capture technologies and systems. Incentives include:
    • 60% for CO2 capture equipment acquisition for direct air capture projects;
    • 50% for investment in equipment to capture CO2 in all other CCUS projects; and
    • 37.5% for transportation, storage, and use.

Clean Energy

  • The NRC will be allotted $250 million for more clean-electricity projects that will aid in the transition to a more efficient clean energy grid;
  • An Electrification and Smart Renewables Pathways Program that will support the modernization and creation of new electric grids in communities thanks to $600 million over seven years.
  • $69.9 million will go to the NRC for research and development programs that will minimise the amount of waste caused by small modular reactors while improving reactor safety.

Maritime Sustainability

  • $2 billion more will be added to the Oceans Protection Plan to significantly increase investment dedicated to protecting oceans. Canadians can be confident that ocean safety is secure and that fisheries are operating in a sustainable way with these funds;
  • Over five years, $43.5 million will go to the creation of a new group called Canada Water Agency, which is tasked with improving Canada’s water; and
  • Amount of $19.6 million to assist in the cleanup of Canadian bodies of water.

Managing Plastics

Through research and development projects that seek to understand the effects of microplastics on human health and the environment, as well as technologies and systems to reduce microplastics, $183.1 million will be allocated over five years to a variety of Canadian programs to help reduce plastic waste and single-use plastics.

Federal Budget 2022’s Investment in Job Opportunities

Canadians who seek to improve their skills and create a stronger labour force are also being invested in by the government.

Working for Canada

  • Over $84.2 million over four years will be spent on the Union Training and Innovation Program, which will help over 3,500 apprentices from underrepresented groups begin and progress in their skilled-trade careers; and
  • Over five years, $272,6 million to assist with securing and implementing employment opportunities for workers with disabilities in Canada through more inclusive and accessible workplaces.

Federal Budget 2022’s Funding for Housing

Since Canada continues to have a low housing supply to meet rising demand, the topic of housing has been a hot one among Canadians. Therefore, the budget has provided numerous programs to make new housing more affordable for Canadians as well as retrofit current communities to become more sustainable.

New Housing Programs

  • Over the next five years, $4 billion will go toward the launch of a new program called the Housing Accelerator Fund, designed to increase the supply of affordable housing and more expensive properties in cities and communities;
  • An expected renewal of the Canada Community-Building Fund to assist in infrastructure projects for housing throughout territories, provinces, and municipalities;
  • $1.5 billion over two years for the Rapid Housing Initiative for affordable housing units and units for women-focussed housing; and
  • $2.9 billion for the National Housing Co-Investment Fund for the creation of up to 4,300 new houses and the repair of up to almost 18,000 other housing units.

Funding for Retrofitting

  • $150 million over five years for the development of a Canada Green Buildings Strategy that will assist in the adoption of national building codes to reduce the effect of climate change; and
  • $200 million over five years for the Deep Retrofit Accelerator Initiative to help retrofitting audits or project management activities associated with large projects.

Greener Housing

  • $33.2 million for a new program called the Greener Neighbourhoods Pilot Program which will approach bulk community housing retrofitting via an approach called “Energiesprong”; and

$183.2 million via the National Research Council (NRC) to generate new construction materials for low-carbon structures.

Investing in Global Initiatives

In order to continue as a global leader, the Federal Budget 2022 has allotted significant investments towards global initiatives, such as cybersecurity and Ukraine support.


$875.2 million for initiatives to engage in cyber attack defences, cyber infrastructure, and more to keep Canada competitive and secure on the world stage.

Ukraine Support

$1.2 billion has been announced in support of Ukraine in the means of training, supplies, and humanitarian support. There will also be an approved loan of an additional $1.6 billion to the Ukrainian government.

Investing in Healthcare

Government funding for key areas mental health, addictions, COVID-19 support, and more.

  • $732 million will be allotted to global initiatives that are addressing the continuing fight against the COVID-19 pandemic by offering supplies, vaccines, logistics, and more;
  • $30 million over three years towards innovations in the brain health and ageing industry to accelerate technologies and medical practices that can reduce the impacts of severe medical conditions;
  • $140 million over two years to implement further support for the Wellness Together Canada portal that strives to provide the necessary tools for helping Canadians with their mental health challenges and well-being;
  • $100 million for addressing serious addictions, such as the opioid crisis, with government funding programs that work to reduce, treat, and prevent addictions to dangerous substances;
  • $3.7 million over four years for the design and implementation of a Mental Health Fund for Black federal public servants to help with the mental health challenges of Canadians in these communities; and
  • $20 million will be invested over five years in support of research on the long-term impacts of the COVID-19 virus on the human body and how these challenges may be addressed.

Reconciliation for Indigenous Communities in Canada

As Canada continues to work with Indigenous communities for reconciliation, there will be further funding programs provided to address some of the outstanding challenges Canada still faces.

  • $4.7 billion in investments towards reconciliation efforts meant to address past struggles for Indigenous communities, as well as work to build a brighter future for Indigenous children and other organizations;
  • $190.5 million towards the Indigenous Community Support Fund which will help Indigenous communities address the ongoing complications of the COVID-19 pandemic within their communities; and 

$4 billion over four years towards Jordan’s Principle which works to address the needs of First Nations children at the moment of need by allowing for settlement of payments at a later time. The purpose is to prevent situations in which children may be refused services they need due to financial disputes.

Tax Incentives

To learn more about tax incentives and policy changes that have been implemented as a result of the Federal Budget 2022, review the comprehensive Ryan Tax Review Federal Budget 2022. Ryan excels at synthesising complex information into logical applications for Canadian businesses thanks to their stellar professional network.

More Canadian Government Funding Opportunities

Mentor Works is the number one source for government funding news in Canada. Be sure to sign up for our government funding newsletter to receive updates on the programs highlighted throughout this blog as they are released throughout the year.

Moreover, the programs cited above account for only a portion of government funding and tax incentives available to Canadian businesses. 

Review our government funding directory for an easy-to-use way of filtering through top programs by region and activity.

Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.

Author: Nathan Chick

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