The federal “Buy Canadian” policy has been extended to approximately 450 programs funded through government transfer payments, according to Treasury Board officials. This expansion aims to bolster Canadian suppliers in bidding for government contracts.
Scope of the Policy Extension
The eligible programs were identified by federal departments from a pool of about 800 total programs funded through grants and contributions, said Martin Krumins, assistant comptroller general with the Treasury Board Secretariat. At a House of Commons committee meeting on Tuesday, May 26, Krumins explained that some programs may have been excluded for reasons such as providing benefits directly to individuals, lacking new funding opportunities, or being sunsetting. International payments for treaty obligations were also left out.
“By extending the policy to grants and contributions, federal funding programs can encourage recipients to prioritize and support Canadian content and suppliers,” Krumins said.
‘Buy Canadian’ as a Response to U.S. Tariffs
Prime Minister Mark Carney was elected last year amid a steady stream of threats from the White House and a strong wave of anti-American sentiment at home. The “Buy Canadian” policy is part of the Carney government’s response to punishing U.S. tariffs. The Liberals have billed the policy as an effort to leverage public spending to support key domestic industries such as lumber and steel.
The first wave of the plan kicked in at the end of 2025. It gave Canadian companies a leg up in bidding on government contracts worth more than $25 million (dropping to $5 million by June) in a specific subset of sectors, including defence, pharmaceuticals, and infrastructure. It also required large federal defence and construction purchases to use Canadian steel, aluminum, and wood if bidders were spending at least $250,000 on those materials and could access Canadian supplies.
Under the policy, all bids for government contracts are evaluated partially based on the proportion of Canadian goods and services they include.
Implementation and Oversight
“Buy Canadian” is led by Public Services and Procurement Canada (PSPC), the department responsible for central purchasing, but Treasury Board Secretariat (TBS), the department holding the government purse strings, has extended the policy so that it applies to grants and contributions. TBS has also directed 35 Crown corporations to follow the policy.
Opposition MPs Question Effectiveness
Liberal MP John-Paul Danko said he believed Canadians were supportive of the policy “in this moment for various, obvious reasons.” “Canadians are expecting the federal government to support Canadian business, Canadian workers first and foremost,” he said. But opposition MPs questioned whether the policy was living up to the government’s goals.
