Ottawa's federal budget, tabled Thursday by Finance Minister François-Philippe Champagne, sets out a series of commitments for British Columbia aimed at spurring business investment as the province's exporters contend with U.S. tariffs. The measures touch forestry, mining, ports, energy, wildfire response and disaster insurance, and they have drawn a mixed reception from across the provincial political spectrum.

The largest single item for the forest sector is $6.5 billion over six years for modernization. The B.C. Council of Forest Industries welcomed the support, noting that the forestry sector has been among the hardest hit by U.S. tariffs. The new funding begins in 2027–28. Ottawa has also committed a $65-million loan guarantee for a tree farm project led by the Tla'amin Nation, which recently acquired Western Forest Products' Stillwater operation.

On critical minerals, the budget allocates $2.3 billion for the federal Critical Minerals Strategy, covering mining technology and specific projects. Mining tax incentives are being extended and expanded. The Association for Mineral Exploration, however, pointed out that the Canadian Exploration Expense was not expanded, a gap it had hoped to see addressed.

Energy and trade infrastructure also feature prominently. Ottawa's budget supports Roberts Bank Terminal 2 at the Port of Vancouver, a project incoming B.C. Premier Lorne Doerkson cited in welcoming the investments. The federal government also backs Phase 2 of LNG Canada in Kitimat and an extension of the Red Chris Mine in northwestern B.C. Doerkson has also pointed to federal support for energy, ports and mining as a foundation for economic growth in the province.

The budget addresses natural hazards as well. It proposes a Canadian Earthquake Insurance Facility, which would provide up to $50 billion in financing to an emergency insurer, and it identifies southwestern B.C. as an area of significant earthquake risk. A further $20 million is earmarked for flood mitigation in B.C. this fiscal year. To strengthen wildfire response, Ottawa proposes up to $2.5 billion in financing for De Havilland Canada's production of waterbombers. Doerkson had earlier called for more Crown-owned waterbombers to fight wildfires.

Agriculture and recovery spending are also included. A total of $176.9 million over three years is set aside to renew the Wine Sector Support Program from 2027–28, a measure of interest to Okanagan wineries damaged by wildfires this summer. For Tumbler Ridge, which was struck by a mass shooting in February, the budget provides $113 million in 2026–27 for recovery, plus an additional $10 million a year for four years in supports. Federal and provincial governments had previously pledged $100 million for a school and infrastructure in the community.

The budget's reception has been divided. B.C. NDP MLA Jennifer Whiteside credited the former NDP government's work with Ottawa for helping secure these investments. The B.C. Greens' Emily Lowan, by contrast, described the budget as corporate welfare. Separately, the federal government reaffirmed $3 billion previously announced to replace the George Massey Tunnel between Richmond and Delta. The B.C. Conservatives have said they would scrap that plan in favour of a 10-lane bridge. The budget also includes funding through the Build Communities Strong Fund for several B.C. community projects, including sites in Vancouver and Surrey.

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