Carney announces $35B plan to strengthen defence and development in Canada’s North

Prime Minister Mark Carney announced a sweeping plan Thursday to strengthen defence, infrastructure and economic development across Canada’s Arctic and northern regions, backed by more than $40 billion in investments.

Speaking in Yellowknife, Carney said the strategy aims to defend Canada’s Arctic sovereignty while improving transportation links, expanding energy projects and creating new economic opportunities for northern communities.

The federal government says the initiative includes more than $35 billion in direct federal spending and major projects representing roughly $10 billion in additional investment.

A major component of the plan focuses on strengthening Canada’s military presence in the North. The government will invest $32 billion in upgrades at forward operating locations in Yellowknife, Inuvik and Iqaluit, along with improvements at 5 Wing Goose Bay in Labrador.

The upgrades will include airfield improvements, new hangars, expanded fuel and ammunition storage, and additional facilities for housing, logistics and communications. The government says the work will allow the Canadian Armed Forces to operate more independently in the Arctic.

Another $2.67 billion will fund a network of new Northern Operational Support Hubs in Whitehorse and Resolute, along with support nodes in Cambridge Bay and Rankin Inlet. The facilities are intended to improve the military’s ability to deploy and respond to emergencies year-round across remote northern regions.

The federal government will also spend $294 million to upgrade several Arctic airports, including improvements at Rankin Inlet and Inuvik airports to accommodate larger aircraft and improve travel connections for residents and military operations.

Beyond defence, the plan includes several major infrastructure projects intended to support economic development and resource access.