Background
On April 28, 2026, the federal government released Canada’s Spring Economic Update 2026 (the “ Update ”), continuing the “Build Canada Strong” agenda first set out in Budget 2025. The Update projects a deficit of $66.9 billion for 2025-26, an improvement of approximately $11 billion from the $78.3 billion projected in Budget 2025, signaling that the government is committing to a materially expanded infrastructure agenda while simultaneously narrowing the fiscal gap. The Update is notable both for the scale of capital it commits – anchored by a new $25 billion sovereign wealth fund, the Canada Strong Fund – and for the structural changes it makes to how federal infrastructure investment is organized and deployed. This bulletin summarizes the key announcements relevant to infrastructure sponsors, lenders, contractors, institutional investors and Indigenous partners. Tax measures (including the expanded CCUS Investment Tax Credit and accelerated capital cost allowance rates
