Government of Canada launches calls for proposals for the $5 billion Trade Diversification Corridors Fund and the $1 billion Arctic Infrastructure Fund
Press Release + Noah Note
March 4, 2026 Ottawa, ON Transport Canada
Canada’s trade corridors are essential to a resilient economy, strong communities, and long‑term prosperity. As global markets shift and demand grows across a wide range of Canadian commodities, the Government of Canada is taking action to strengthen national trade‑enabling infrastructure, improve connectivity, and unlock new opportunities for Canadian exporters.
On March 3, 2026, the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, announced the launch of the calls for proposals for both the $5 billion Trade Diversification Corridors Fund and the $1 billion Arctic Infrastructure Fund.
Trade Diversification Corridors Fund: Call for proposals now open
The national program will strengthen trade‑enabling transportation infrastructure and help double Canadian exports over the next decade. The program will strengthen supply chain capacity, relieve congestion, and address infrastructure gaps that limit Canada’s ability to reach global markets beyond the United States. The Government of Canada will make strategic investments from submitted proposals that align with the following objectives:
Increase corridors’ systems-based trade and transportation infrastructure capacity to support the diversification of Canada’s international trade, including as it assists in diversifying trade to global markets, beyond the United States;
Address costly congestion that is hindering Canada’s economic growth; and
Address trade-enabling transportation infrastructure gaps where there are deficits impeding national or regional growth.
The Trade Diversification Corridors Fund features three funding streams, all of which are open today:
Stream 1: Strengthening Canada’s Core Trade Corridors through a Systems-Based Approach (Invitation‑Based)
Targets high-impact projects that diversify trade through Canada’s core trade corridors. It will use a systems-based approach, which entails targeting opportunities where bundles of projects could be advanced as an integrated package to maximize trade diversification benefits.
Stream 2: Unlocking Opportunities and Connectivity Through Collaborative Trade Corridor Solutions (Targeted Call)
Targets collaborative, multi-stakeholder solutions to resolve specific issues that are inhibiting Canada’s ability to grow and diversify trade through key trade corridors. Applicants will be invited to submit proposals to address one or more of the following issues:
Enhancing intermodal capacity to increase trade with non-United States markets[PH1] [PH2] [DG3] , including potentially through inland ports.
Optimizing existing transportation assets to enable trade diversification to the core trade corridors to support overseas exports.
Increasing transportation capacity for bulk commodity exports.
Stream 3: Supporting Regional Growth (Open Call)
Targets projects that address trade-enabling transportation infrastructure gaps that are impeding regional growth.
Arctic Infrastructure Fund: Call for proposals now open
The launch of the Arctic Infrastructure Fund call for proposals marks the next step in advancing strategic northern transportation projects. Starting today, eligible partners, including Arctic and northern communities, territorial and Indigenous governments and organizations, and industry, are invited to submit proposals for infrastructure initiatives that will:
strengthen defence readiness and Canada’s ability to operate in the Arctic;
improve transportation links that enable economic development and access to domestic and global markets; and
enhance community connectivity, and access to essential goods, services, and emergency response.
advance Indigenous reconciliation, including recognizing that First Nations, Inuit and Métis are best placed to identify their community needs.
The Arctic Infrastructure Fund features two funding streams, both of which are open today:
Stream 1: Dual‑Use Transportation Infrastructure that Supports Defence and Community/Civilian Requirements in the Arctic (Invitation‑Based)
Supports large-scale, defence‑ and civilian‑serving projects that support two or more of the Arctic Infrastructure Fund objectives and that advance key transportation corridors to close longstanding northern transportation gaps, which will improve regional connectivity, promote economic development, and bolster defence operational readiness in the Arctic and Canada’s North.
Stream 2: Investing in Industry and Community‑Led Transportation Infrastructure with Dual-Use Benefits (Open Call)
Supports community or industry‑driven projects that address one or more of the Arctic Infrastructure Fund objectives and that seek to improve regional connectivity, strengthen supply chains, enhance safety, and support defence needs. Projects can serve as enabling links to larger corridor developments.
Eligible projects must be located in the Yukon, Northwest Territories, Nunavut, Nunavik, or Nunatsiavut.
Both programs will use a mix of non‑repayable, conditionally repayable, and unconditionally repayable contributions to stretch federal dollars further and leverage financing opportunities, including collaboration with the Canada Infrastructure Bank. Full program criteria, application guidance, and timelines are available on Transport Canada’s website.
Quotes
“A strong and connected Canada is essential for our prosperity, for the well-being of our communities, and for our national security. With the launch of the Trade Diversification Corridors Fund and the Arctic Infrastructure Fund, we are making the long-term, strategic investments that will strengthen supply chains, unlock access to global markets, grow our economy, and ensure communities in the North and across Canada have the infrastructure they need to thrive.”
The Honourable Steven MacKinnon
Minister of Transport and Leader of the Government in the House of Commons
“Investing in Arctic infrastructure is fundamental to building a secure, connected, and resilient North. Modern, reliable transportation networks reinforce Canada’s capacity to operate across the region, improve readiness, and support the Defence Team members who serve there. These investments are about people, ensuring Northern and Indigenous communities have the infrastructure required to thrive and remain connected. By working in partnership with territorial governments, Indigenous governments and organizations, and industry, we are establishing a strong foundation for enduring prosperity and security in the Arctic for the benefit of all Canadians.”
The Honourable David J. McGuinty
Minister of National Defence
“The Arctic Infrastructure Fund supports our new government’s plan to build strong, resilient northern communities while reinforcing Canada’s sovereignty and security in the Arctic by investing in transportation corridors and community-led projects that strengthen defence readiness, unlock economic opportunity, and improve access to essential goods and services. First Nations, Inuit and Métis partners are best equipped to identify their priorities, and this fund supports Indigenous-led solutions that advance reconciliation while closing longstanding infrastructure and transportation gaps across the North.”
The Honourable Rebecca Chartrand
Minister of Northern and Arctic Affairs and Minister responsible for the Canadian Northern Economic Development Agency
Noah Note: I was highly anticipating both funds to finally make their debut. The Arctic Infrastructure Fund especially was one that I was keenly watching to see what would come of it. At first glance I can't complain. Of course there would be some selectiveness involved, but I think the approaches here are fair.
There's obviously a massive focus on transportation, something you might remember me screaming about a few months ago when I discussed the Mackenzie River. Tansport infrastructure in the North isnt just struggling, not underdeveloped. It is a system that is proactive failure across several domains and it's continued failure will only accelerate in the coming years.
Sadly we can't fight Mother Earth here. We can't continue to expect that the ongoing issues will eother resolve themselves or balance out naturally. As such it us on us to be proactive in both mitigating and trying to build out the proper infrastructure networks to ensure that we don't see a regional collapse of our transportation networks.
So I welcome the transportation focus as an immediate need to help support the region. Obviously this won't be the only fund, amd I expect quite a few projects like the Arctic Security Corridor will find it's own funding through the Major Projects Office, which is good by the way. It keeps this more open to other projects in the meantime.
Either way, I'm excited to see what comes of this.
It is refreshing to see this long overdue focus on Arctic transportation and defence matters occur. We must also not forget to elevate numerous food security, housing and transportation issues for the benefit of our Arctic citizens.