The Liberals’ 2026 federal budget sets out billions in funding initiatives specifically for British Columbia, including $3 billion for the George Massey Tunnel replacement project and $20 million for flood mitigation.
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The governing Liberals’ 2026 federal budget proposes a $62.3-billion deficit for the 2026-27 fiscal year, with investments aimed at boosting Canadian sovereignty and supporting major projects, including a number in British Columbia.
The budget says billions of dollars are tied to so-called “nation-building projects” managed through the Major Projects Office, including a port expansion in Delta, the proposed Pacific Link pipeline from Alberta, mine expansions, and an LNG export terminal in Kitimat.
A key B.C. item in the document is $3 billion for the George Massey Tunnel replacement project. The budget describes the 67-year-old tunnel, which connects Richmond and Delta through Highway 99, as being replaced with federal funding.
The budget arrives as the incoming B.C. Conservative government has pledged to scrap the long-running plan to replace the tunnel and instead build a 10-lane bridge.
In a statement after the budget was released, premier-designate Lorne Doerkson said he welcomed the funding for the “George Massey Crossing” project, adding that “No single budget can address every priority, but this is a very positive foundation for our partnership.”
The budget also lists $6.5 billion as part of a “forest sector transformation strategy,” including $500 million over six years to increase fibre supply and $2 billion over six years to support the production of higher-value products.
Further, the budget includes $4 billion over six years starting in 2027-28 for a new “forestry sector accelerator,” described as investing in new large-scale forestry facilities and transforming existing ones to produce more innovative forestry products.
For Tumbler Ridge, the budget includes $113 million in 2026-27 and $40 million over the next four years to support recovery after a mass shooting in February. District of Tumbler Ridge Coun. Chris Norbury said he hoped the funding could be directed through the municipality’s community recovery plan and said, “We’re going to need help for many years to come.”
Prime Minister Mark Carney previously promised $100 million to build a new school and health centre in Tumbler Ridge, with the outgoing B.C. NDP government having pledged the same amount, and the incoming B.C. Conservative government said during the snap election it would honour both provincial and federal commitments.
Other B.C.-focused community investments highlighted in the budget include a rooftop garden revitalization at the Chinese Canadian Museum in Vancouver, replacing fieldhouses at Delta’s Mackie and Hawthorne parks, helping implement New Westminster’s Hume Park master plan, enhancing facilities at Surrey’s Chimney Heights Park, and funding for the Cowichan Valley Basket Society, also known as the Duncan Food Bank.
The budget also earmarks $20 million in 2026-27 for flood mitigation work specifically in B.C., and says its $3.7-billion nature strategy includes a plan to restore wild Pacific salmon in B.C. and Yukon.
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