Canada Makes First Major Investment Under New Buy Canadian Policy

The Government of Canada has announced the first major investment under its new Buy Canadian Policy, strengthening support for domestic manufacturing and jobs as part of a broader strategy to build a resilient economy. The announcement was made on January 15, 2026, in Thunder Bay, Ontario, by federal and provincial officials.

Under the investment plan, the federal and Ontario governments will increase funding from $758 million to $950.9 million to procure 55 new subway trains for the Toronto Transit Commission’s Line 2. These trains will be fully assembled in Canada with at least 55 per cent Canadian content, prioritizing the use of Canadian-made materials and skilled labour.

The initiative is one of the first concrete implementations of the Buy Canadian Policy, which was rolled out in late 2025 and directs federal procurement to favour Canadian suppliers, Canadian materials and domestic manufacturing wherever possible. The policy aims to ensure that public dollars support Canadian jobs, businesses and communities and help the economy become more diversified and resilient amid global trade shifts.

Officials said the subway train contract will directly support over 900 jobs across Canada and is expected to benefit more than 1,700 jobs nationwide through the production and supply chains linked to the project. The move is being praised by labour groups and industry leaders as a significant step in keeping high-quality manufacturing work in Canada and strengthening local economies.

The funding announcement included international and local partners, with representatives from Alstom Americas, the City of Toronto, and various levels of government joining the ministers at the launch event. These leaders highlighted the investment’s role not just in expanding transit infrastructure but also in demonstrating Canada’s commitment to domestic industrial growth.

The new trains are part of a 10-year Canada Public Transit Fund baseline commitment, which provides predictable funding to improve accessibility, reliability and service quality for Canadian transit systems. The Buy Canadian Policy’s focus on using Canadian content for major procurement contracts like this one aims to create long-term economic benefits and strengthen national supply chains.

This first investment under the Buy Canadian Policy signals a shift in how federal spending will be used to encourage job creation, industrial capacity building, and economic resilience — a priority for the government as it navigates changing global trade dynamics.