Canada’s softwood lumber industry is getting a major boost as part of a broader shift toward economic resilience and domestic production. Prime Minister Mark Carney announced the $1.25 billion package today in West Kelowna.
The federal plan includes up to $700 million in loan guarantees to help companies manage immediate financial pressures and restructure operations. Another $500 million will be invested to increase domestic processing, support value-added production, and grow Indigenous-led forestry businesses.
The government will also prioritize Canadian lumber in federal infrastructure and housing projects. A key part of this effort is the Build Canada Homes program, which will help private-sector builders access financing if they use Canadian technologies and materials—like softwood lumber and mass timber. Ottawa has set a target of 500,000 new homes built per year over the next decade.
To expand global reach, the plan includes new measures to promote Canadian forest products in overseas markets, focusing on sustainability and innovation.
Finally, $50 million will go toward retraining and income support for over 6,000 workers. This includes enhanced Employment Insurance and upskilling programs to help workers adapt to a changing industry.
The government says the strategy is about turning Canada’s economic dependence into long-term resilience.
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