Canadian Election: Impact on Business Grants

Climate and Clean Technology Implications

Under a Liberal government, businesses in clean technology, renewable energy, and decarbonization sectors can expect continued or expanded direct grant funding.

Programs such as the Strategic Innovation Fund (SIF), Clean Fuels Fund, and Smart Renewables and Electrification Pathways are likely to see increased support, as the Liberal party will typically aim for ambitious climate goals.

Conversely, a Conservative victory might choose to shift support away from direct funding toward tax incentives and streamlined regulatory processes. Grants may diminish, but opportunities in resource-based infrastructure and private-sector-driven initiatives could expand, particularly in energy and mining.

Trade and Export: Diversification vs. Domestic Strength

Trade and export-focused businesses would benefit significantly from a Liberal government, given its proposed plan to enhance trade diversification through programs like CanExport SMEs and the $5 billion Trade Diversification Corridor Fund. Both target European and Indo-Pacific markets.

In contrast, a Conservative government would likely prioritize strengthening trade relations with the United States. It is reasonable to expect a reduction in direct grants, with an emphasis on tax cuts, deregulation, and private-sector-led trade missions.

In this scenario, businesses should strategically plan to pivot towards private and provincial partnerships under Conservative leadership.

Housing and Infrastructure: Federal Grants or Provincial Partnerships?

Businesses involved in modular construction, prefab housing, and advanced construction technologies will likely see robust federal support under a Liberal government, with $25 billion earmarked for innovative housing solutions.

In contrast, the Conservative approach will likely propose reduced federal involvement, directing businesses toward municipal zoning reforms, provincial funding, and efficiency-driven innovations. In this instance, firms that benefit from federal support will need to recalibrate their funding strategies, placing greater emphasis on provincial and private funding sources rather than federal grants.

Under a Liberal government, businesses in digital media, creative industries, AR/VR, and interactive technology can expect continued robust funding, especially for initiatives that have international export potential or integrate technology and inclusivity.

Alternatively, a Conservative administration would likely reduce federal involvement, particularly in cultural funding, shifting toward market-driven and provincially managed opportunities.

Relative to workforce-related grants such as immigration integration and wage subsidies, it is anticipated that federal support would remain under Liberal party oversight, while becoming increasingly fragmented under Conservative provincial decentralization.

Defense, Crime, and Cybersecurity: Innovation or Procurement?

A Liberal government would invest significantly in defense, surveillance technology, and cybersecurity through targeted innovation grants and integrated public safety initiatives. Businesses developing technologies such as AI-driven monitoring, drone surveillance, and digital security platforms can anticipate funding opportunities aligned with national security and innovation programs.

Conversely, the Conservative party is expected to prioritize defense procurement and infrastructure expansion, especially in Arctic operations by creating opportunities through procurement contracts rather than direct grants.

Navigating Future Government Funding Landscapes

Regardless of the election outcome, Canadian businesses must remain adaptable. As political tides shift, so must strategies for accessing government support. Preparation with proactive assessment is key, as aligning with governmental priorities will directly influence funding success.

“The 2025 federal election is not just about politics; it’s about fundamentally reshaping how Canadian businesses access crucial funding. Companies prepared to pivot quickly will have a significant advantage.”
– Malaga Mashrur, Consultant, Government Grants, Ryan Canada

Businesses should closely monitor election developments to swiftly align their strategic funding plans with the incoming government’s priorities. Sign up for our weekly newsletter for Canadian government funding updates.

To learn more about upcoming government funding opportunities in Canada, register for our free Top Canadian Government Funding Programs for Summer 2025 webinar on June 18, 2025. Our team of experts will explore resources and services available through Ryan’s tax functions and highlight the top government funding programs your business should be aware of this upcoming summer.