Government of Canada launches $500 million in support for retooling Canada’s forest sector

TRACYVILLE, NB, Feb. 25, 2026 /CNW/ – The forest sector is a lifeline for communities across the country and an important pillar of Canada’s economy. In the face of unjust U.S. trade measures, the Government of Canada is taking decisive action to support the forest sector, protect workers and their jobs, and give Canadian companies the stability they need to weather short-term shocks and retool for a stronger, more diversified future.

In August 2025, Prime Minister Mark Carney announced a series of new measures to help the forest sector transform and remain competitive. These measures will help unlock the full potential of our industry as the federal government scales up housing and major infrastructure construction and drives long-term economic growth, rooted in Canadian resources and innovation. These measures were followed up by additional support and the launch of the Canadian Forest Sector Transformation Task Force, which began its work in January 2026.

Today, the Government of Canada is taking the next step to support and retool our forest sector. The Honourable Tim Hodgson, Minister of Energy and Natural Resources, launched a national Calls for Proposals under Natural Resources Canada’s forest sector transformation programs, supported by a $500-million commitment.

Eligible businesses and organizations can now apply for funding through:

• The Investments in Forest Industry Transformation (IFIT) program
• The Green Construction Through Wood (GCWood) program
• The Indigenous Forestry Initiative (IFI)
• The Global Forest Leadership Program (GloFor)

These programs will help Canadian companies innovate and diversify their production — driving domestic demand, expanding the use of Canadian wood in construction, supporting Indigenous participation and opening new domestic and international markets. These programs are also central to Canada’s broader strategy to be our own best customer through the Buy Canadian Policy and Build Canada Homes, which prioritize Canadian wood.

In addition, Minister Hodgson announced $2.8 million in existing program funding through the IFIT, IFI, GloFor and GCWood programs, supporting seven projects that will help strengthen the forest sectors in New Brunswick and Nova Scotia. These projects will expand the use of mass timber in construction; support Indigenous groups and forestry businesses; increase manufacturers’ capacity to add more value to wood products; and diversify Canada’s forest products and their export markets. They represent the types of transformative, innovation–driven projects that the renewed forest sector programs will advance.

By defending forest sector workers today, modernizing the industry for tomorrow and helping companies reach new markets at home and abroad, the Government of Canada is ensuring that the forest sector remains a pillar of national strength and prosperity for decades to come.

Quotes

“Canada’s forests are more than a resource. They are the foundation for good jobs, affordable housing and sustainable economic growth. Today’s announcement makes sure that the forest sector remains a pillar of national strength, an economic engine for communities across the country and a major exporter of our products to the world. This is how we protect what we have while building stronger for tomorrow.”

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

“These investments are about supporting workers today and building a stronger future for forestry communities in Fredericton, New Brunswick, and across the country. By modernizing the sector and opening new opportunities, we are investing in our own resilience and building Canada Strong.”

David Myles
Parliamentary Secretary to the Minister of Canadian Identity and Culture and Minister
responsible for Official Languages and to the Secretary of State of Nature

Quick Facts

• Canada’s forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous people and contributing more than $20 billion to our GDP.
• The forest sector in the Maritime provinces supports almost 19,000 jobs and provides nearly $2 billion to real GDP (1.6 percent of total GDP for the region).
• To make it easier for forest sector businesses and employees to navigate and apply to federal programs, NRCan has launched a new, single-window pathfinding service, which includes a new website with information on all programs available to forest sector businesses and direct access to NRCan experts.

Related Products

• Backgrounder: Government of Canada invests in Atlantic Canada’s forest sector
• Prime Minister Carney announces new measures to transform Canada’s softwood lumber industry (August 5, 2025)
• Prime Minister Carney announces new measures to protect and transform Canada’s steel and lumber industries (November 26, 2025)
• Task Force begins work to transform Canada’s forest sector (January 19, 2026)

Associated Links

• Support for forest sector employers and workers
• Forest sector funding programs
• Investments in Forest Industry Transformation Program
• Green Construction Through Wood Program
• Indigenous Forestry Initiative
• Global Forest Leadership Program 

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SOURCE Natural Resources Canada