2025-2026 Details on transfer payment programs
Table of contents
- Transfer payment program or funding agreement: Grants and Contributions for Promoting Regional Development in Canada's Three Territories
- Transfer payment program or funding agreement: Northern Indigenous Economic Opportunities Programs
- Transfer payment program or funding agreement: Regional Economic Growth Through Innovation
Transfer payment program or funding agreement: Grants and Contributions for Promoting Regional Development in Canada's Three Territories
Start date: April 1, 2009
End date: Ongoing
Type of transfer payment: Grants and Contributions
Type of appropriation: Annually through Estimates
Fiscal year for terms and conditions: 2014-15, updated 2018-19, updated 2025-26
Link to departmental result(s):
- Businesses are Developing in the Territories
- People and Communities Participate in the Economy in the Territories
- Efficient and predictable environmental review process in the territories
Link to the department's program inventory:
- Business Development
- Community Development
Purpose and objectives of transfer payment program: Through this umbrella transfer payment authority, CanNor delivers a range of northern economic development contribution programs/funding initiatives to promote economic development in the North that strengthens territorial economies and increases participation by Northerners.
In 2025-2026, these programs/funding initiatives included: the Inclusive Diversification and Economic Advancement in the North (IDEANorth) Program, the Northern Isolated Communities Initiative (NICI) Fund, the Regional Defence Investment Initiative (RDII), the Support for Northern Infrastructure Development (SNID) initiative, and the Yukon Gathering Place funding.
Results achieved: In 2025-26, through IDEANorth, CanNor provided over $28M for 150 projects across the territories. IDEANorth capitalizes on the diverse range of economic opportunities in the territories by funding sector capacity development projects, skills development and scale-up, small-scale economic infrastructure projects and economic infrastructure studies.
Under NICI, CanNor provided over $2.4M for 16 projects across the territories to support northern food and agriculture businesses by investing in initiatives that strengthen and diversify economic activity, while addressing food security in northern and Indigenous communities.
Under RDII, CanNor provided over $11.1M for six projects in order to accelerate the integration of businesses and regional ecosystems into domestic and international defence supply chains and increase their industrial and innovation capacity, while also supporting defence-related strategic regional assets in targeted circumstances.
Through the Support for Northern Infrastructure Development (SNID) Initiative, CanNor provided over $6.7M to support three major northern infrastructure projects move through regulatory and consultation processes more efficiently and strengthen early project planning.
CanNor also provided $7.5M in FY 2025-26 for the Yukon Gathering Place, with additional funding approved for FY 2026-27 ($29.75M) and 2027-28 ($19M). The Yukon Gathering Place is an important infrastructure project for the Yukon Government and for the tourism industry in the Yukon, projected to be able to host up to 1,000 guests and significantly expand the Yukon's ability to accommodate major meetings, conventions and events.
Findings of audits completed in 2025-26: No audits were completed in 2025-26.
Findings of evaluations completed in 2025-26: No evaluations were completed in 2025-26.
Engagement of applicants and recipients in 2025-26: CanNor's economic development officers regularly engage with applicants and funding recipients throughout the project development cycle.
| Type of transfer payment | 2023-24 actual spending | 2024-25 actual spending | 2025-26 planned spending | 2025-26 total authorities available for use | 2025-26 actual spending (authorities used) | Variance (2025-26 actual minus 2025-26 planned) |
|---|---|---|---|---|---|---|
| Total grants | $591,833 | $480,311 | $8,000,000 | $653,899 | $653,899 | $-7,346,101 |
| Total contributions | $45,837,930 | $31,862,395 | $24,532,163 | $60,128,262 | $56,982,675 | $32,450,512 |
| Total other transfer payments | $0 | $0 | $0 | $0 | $0 | $0 |
| Total program | $46,429,763 | $32,342,706 | $32,532,163 | $60,782,161 | $57,636,574 | $25,104,411 |
Explanation of variances
The total variance between actual spending and planned spending is mostly the result of additional authorities received through the 2025-26 Supplementary Estimates B and Supplementary Estimates C. The planned spending outlined in the 2025-26 Departmental Plan was solely based on the 2025-26 Main Estimates. The specific variances within the grants and the contributions categories are the result of the in-year transfer of grant authorities to contribution authorities.
Transfer payment program or funding agreement: Northern Indigenous Economic Opportunities Program
Start date: April 1, 2014
End date: Ongoing
Type of transfer payment: Contribution
Type of appropriation: Annually through Estimates
Fiscal year for terms and conditions: 2013-14, revised 2017-18, revised 2022-23
Link to departmental result(s):
- Businesses are Developing in the Territories
- People and Communities Participate in the Economy in the Territories
Link to the department's program inventory:
- Business Development
- Community Development
Purpose and objectives of transfer payment program: Through this transfer payment authority, including additional funding received through Budget 2022, CanNor delivers the Northern Indigenous Economic Opportunities Program (NIEOP) to create Indigenous employment, support Indigenous entrepreneurship, and help build resilience in Indigenous communities through economic development, all of which contribute to territorial economic growth. The enhanced program comprises three streams:
- The Community Readiness and Opportunities Planning (CROP) stream provides project-based support to Indigenous communities and organizations for capacity and readiness activities so that communities are able to plan for, pursue and participate in economic opportunities. A Budget 2022 decision also approved additional funds to support the reintroduction of core funding to Indigenous rights-holding organizations.
- The Entrepreneurship and Business Development (EBD) stream assists Indigenous entrepreneurs, businesses and organizations in the pursuit of economic opportunities for the benefit of Indigenous Peoples. The stream includes project-based support for activities that facilitate the establishment or expansion of Indigenous businesses.
- The Economic Research Stream (ERS) provides project-based support for research, knowledge transfer, and the distribution of information to establish a research agenda by targeting research proposals that can contribute to the territorial Indigenous business ecosystem.
Results achieved: Through CROP in 2025-26, CanNor provided over $9.7M to 40 Indigenous projects to enhance community economic infrastructure, increase employment, and improve conditions for community economic development.
Through EBD in 2025-26, CanNor provided over $2.5M million to seven projects, including over $2.1M to five approved intermediary recipients. These intermediary recipients are Indigenous service providers with direct linkages to northern communities. CanNor's financial support enhanced their capacity to assist Indigenous entrepreneurs, businesses and commercial entities in cultivating a culture of entrepreneurship and increase the number of sustainable, resilient and prosperous Indigenous businesses.
Through ERS in 2025-26, CanNor provided $540K to five projects in support of Indigenous-led research and knowledge mobilization. These initiatives help address knowledge gaps in the territorial Indigenous economic ecosystems and maximize economic opportunities and prosperity for Indigenous entrepreneurs and businesses.
Findings of audits completed in 2025-26: No audits were completed in 2025-26.
Findings of evaluations completed in 2025-26: No evaluations were completed in 2025-26.
Engagement of applicants and recipients in 2025-26: CanNor continued to engage program recipients and stakeholders regarding the inclusion of capacity-related funding. CanNor's economic development officers also regularly engage with applicants and funding recipients throughout the project development cycle.
As part of initiatives under ERS, CanNor also identified research priorities through engagement with Indigenous communities and educational institutions.
| Type of transfer payment | 2023-24 actual spending | 2024-25 actual spending | 2025-26 planned spending | 2025-26 total authorities available for use | 2025-26 actual spending (authorities used) | Variance (2025-26 actual minus 2025-26 planned) |
|---|---|---|---|---|---|---|
| Total grants | $0 | $0 | $0 | $0 | $0 | $0 |
| Total contributions | $13,200,000 | $13,150,000 | $13,200,000 | $13,200,000 | $12,820,568 | $-379,432 |
| Total other transfer payments | $0 | $0 | $0 | $0 | $0 | $0 |
| Total program | $13,200,000 | $13,150,000 | $13,200,000 | $13,200,000 | $12,820,568 | $-379,432 |
Explanation of variances
The variance between actual spending and planned spending is the result of a project that was cancelled late in 2025-26 whose funds could not be reallocated to another project before fiscal year-end.
Transfer payment program or funding agreement: Regional Economic Growth Through Innovation
Start date: October 18, 2018
End date: 2029-30
Type of transfer payment: Grants and Contributions
Type of appropriation: Annually through Estimates
Fiscal year for terms and conditions: 2019-2020, updated 2024-25, updated 2025-26
Link to departmental result(s): Businesses are Developing in the Territories
Link to the department's program inventory: Business Development
Purpose and objectives of transfer payment program: The Regional Economic Growth Through Innovation (REGI) Initiative builds on the objectives of the Innovation and Skills Plan. The goal of REGI is to provide streamlined, nationally consistent and regionally tailored support for business productivity and scale-up, particularly for small- and medium-sized enterprises (SMEs) women entrepreneurs and other underrepresented groups. REGI also supports the enhancement of regional industrial and technology clusters and regional innovation systems. Through REGI authorities, in 2025-2026 CanNor also delivered the Regional Homebuilding Innovation Initiative (RHII), the Regional Artificial Intelligence Initiative (RAII), and the Regional Tariff Response Initiative (RTRI). RHII was designed to support the growth of local innovative housing solutions, while RAII assists Canadian start-ups, SMEs, and organizations in the development and adoption of innovative AI solutions and secure Canada's competitive advantage in artificial intelligence.
Results achieved: In 2025-26, CanNor provided approximately $5.3M to 24 projects through REGI. CanNor provided approximately $1.7M to ten projects through REGI – Regional Innovation Ecosystems stream to foster the entrepreneurial environment necessary for more innovative regional economies and increase the competitiveness of SMEs in the territories. CanNor also provided approximately $3M to seven projects through REGI – Business Scale up and Productivity stream to assist businesses to grow and adopt innovative technologies that support productivity, global competitiveness, and entry into new markets. Through RAII, CanNor provided approximately $177K to four projects supporting AI adoption in strategic sectors of the Northern economy. Through the Regional Homebuilding Innovation Initiative (RHII), CanNor provided approximately $407K for three projects to support innovation and productivity in the housing sector in the territories. Lastly, through the Regional Tariff Response Initiative (RTRI), CanNor provided over $2.9M for five projects to help businesses overcome trade disruptions, boost productivity, lower costs, strengthen supply chain resilience, and open doors to new markets, enhancing overall competitiveness.
Findings of audits completed in 2025-26: No audits were completed in 2025-26.
Findings of evaluations completed in 2025-26: No evaluations were completed in 2025-26.
Engagement of applicants and recipients in 2025-26: CanNor's economic development officers regularly engage with applicants and funding recipients throughout the project development cycle.
| Type of transfer payment | 2023-24 actual spending | 2024-25 actual spending | 2025-26 planned spending | 2025-26 total authorities available for use | 2025-26 actual spending (authorities used) | Variance (2025-26 actual minus 2025-26 planned) |
|---|---|---|---|---|---|---|
| Total grants | $0 | $11,500 | $2,047,282 | $165,761 | $77,070 | $-1,970,212 |
| Total contributions | $1,254,232 | $5,352,704 | $3,644,924 | $8,530,506 | $8,192,013 | $4,547,089 |
| Total other transfer payments | $0 | $0 | $0 | $0 | $0 | $0 |
| Total program | $1,254,232 | $5,364,204 | $5,692,206 | $8,696,267 | $8,269,083 | $2,576,877 |
Explanation of variances
The total variance between actual spending and planned spending is mostly the result of additional authorities received through the 2025-26 Supplementary Estimates B. The planned spending outlined in the 2025-26 Departmental Plan was based solely on the 2025-26 Main Estimates. The specific variances within the grants and the contributions categories are the result of the in-year transfer of grant authorities to contribution authorities.