Canadian Field Hospital participate on a Cold Weather Operator course and are joined by two members from the United Kingdom. Events consisted of building improvised shelters, navigation, snowshoeing, section attacks, and ice fishing in the training area of Canadian Forces Base Petawawa from February 9th to February 11th, 2026. Photo by: Corporal Danielle Comisso, Garrison Petawawa Imaging
OTTAWA — The federal government is pledging more than $40 billion to strengthen Canada’s Arctic and northern regions, citing growing geopolitical tensions and rapid environmental change.
Prime Minister Mark Carney says the plan includes more than $35 billion in federal spending aimed at boosting defence, infrastructure and economic development across the North, alongside major projects valued at about $10 billion.
The government says the strategy is designed to assert Canadian sovereignty, reduce reliance on other countries and respond to what it describes as a more dangerous and competitive global landscape.
A large portion of the funding is focused on defence, including $32 billion for upgrades to military infrastructure in Yellowknife, Inuvik, Iqaluit and Goose Bay, as well as $2.67 billion for a network of new operational support hubs and nodes across the Arctic.
Additional investments include nearly $300 million for airport upgrades in northern communities to improve year-round access and support both civilian and military operations.
The government is also advancing major infrastructure projects, including the Mackenzie Valley Highway, the Grays Bay Road and Port and the Arctic Economic and Security Corridor, aimed at connecting remote regions to national transportation networks and global markets.
Officials say the projects are expected to unlock access to critical mineral deposits and support increased mining and economic activity in the North.
The plan also includes expansion of the Taltson hydroelectric system in the Northwest Territories, which would double the territory’s hydro capacity and serve a majority of residents.
Carney says the strategy is intended to build more resilient northern communities, lower costs of living and create new economic opportunities in partnership with Indigenous and territorial governments.
The announcement comes as Canada faces increasing pressure to secure its Arctic sovereignty and adapt to climate change, with officials warning the region is warming at nearly three times the global average and attracting heightened international interest.
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