What the Liberals' 2025 budget means for B.C.

The federal government’s 2025 budget runs hundreds of pages, with two companion documents that together outline billions of dollars in new and continuing programs. It takes time to unpack what’s in them—and what it all means for our region. This story is a preliminary look at measures that could affect British Columbians. We appreciate your patience as we dig further into the fine print in the days ahead.

Energy and resource development

The budget identifies British Columbia as a location for major industrial projects that contribute to Canada’s energy and export capacity.

The document references the LNG Canada expansion in Kitimat and the Red Chris Mine project in northwestern B.C. as examples of investments advancing under the federal Critical Minerals Strategy and broader energy framework.

The government commits to accelerating decisions on major resource and energy projects through a strengthened Major Projects Office and new partnerships with Indigenous Peoples. It also reiterates support for “clean and conventional energy” as part of its plan to “build Canada Strong.”

Housing and community infrastructure

Housing measures represent a substantial portion of new federal spending. The budget launches Build Canada Homes, a federal agency intended to coordinate public-private investment and “nearly double” annual homebuilding to between 430,000 and 480,000 units nationwide over the next decade. Key measures include:

• Removing the GST on new homes priced at $1 million or less for first-time buyers.

• $25 billion over five years for housing programs, including the new agency’s operations and related tax measures.

For B.C., where population growth and limited supply continue to drive affordability challenges, these initiatives are expected to expand construction capacity and reduce costs in high-demand regions such as the Lower Mainland and southern Vancouver Island.

The Build Communities Strong Fund also includes infrastructure projects in the province, such as upgrades to White Rock Pier, Newton Athletic Park (Surrey), and a new Filipino Community and Cultural Centre in Metro Vancouver.

Clean-energy and industrial competitiveness

The budget expands on the federal Climate Competitiveness Strategy, supporting clean-energy and low-carbon manufacturing projects through extended investment tax credits.

It highlights B.C.’s existing hydroelectric system and critical-minerals potential as national assets.

Facilities meeting top emissions-performance standards—such as certain LNG operations—are eligible for accelerated capital-cost allowances (50 percent for liquefaction equipment and 10 percent for related buildings).

These provisions are designed to encourage modernization and investment in cleaner industrial operations rather than impose new restrictions.

Trade and transportation corridors

The budget emphasizes the need to diversify export markets and strengthen trade infrastructure. The document references the Trans Mountain Expansion and LNG Canada as projects that have supported export capacity despite new global tariffs.

Through the expanded Trade Diversification Corridors Fund, the federal government plans to improve access to overseas markets via new port, airport, and railway infrastructure, a measure particularly relevant to British Columbia’s Pacific Gateway and ports in Vancouver, Delta, and Prince Rupert.

Fiscal and social measures affecting households

Nationwide measures with direct household impact include:

• A reduction of the first personal-income-tax bracket from 15 to 14 percent, expected to save a typical two-income household up to $840 per year.

• Cancellation of the consumer carbon price, reducing gasoline costs by about 18 cents per litre in most provinces.

• The National School Food Program made permanent, providing meals to 400,000 children per year.

• Development of Automatic Federal Benefits, scheduled to reach 5.5 million low-income Canadians by 2028.

While these initiatives are national, the budget identifies affordability as a central concern, with B.C. residents—facing higher housing and transportation costs—among those likely to notice their effects most directly.

Areas with limited new information

Some sectors important to B.C. receive limited new detail. The budget does not allocate additional funding for major urban-transit expansions, nor does it include new agriculture-specific programming beyond the Strategic Response Fund for trade-exposed producers such as canola, lumber, and steel.