Benefits evident of federal spending: MP

By Sandi Krasowski
Local Journalism Initiative Reporter
The Chronicle-Journal

At a time when global uncertainty is rising and divisions are deepening, strength from a united country has never mattered more, and Northern Ontario knows this, a federal minister says.

Patty Hajdu, MP for Thunder Bay-Superior North and minister of jobs and families, said people see what can be accomplished when they stand together, and Northwestern Ontario’s economy has shown resilience in a challenging global environment.

“Canada’s economy is projected to grow, despite ongoing global trade pressures and higher interest rates,” she said.

“We are also making significant investments from Budget 2025, and Thunder Bay continues to benefit from strength in natural resources, manufacturing, tourism, and small businesses.

“You can see that momentum on the ground, from new housing developments across the city to growing interest in clean energy solutions like rooftop solar.”

She added targeted federal investment, supporting local employers, innovation, and Indigenous-led economic development, so communities are positioned for long-term growth, not just short-term recovery, makes the difference.

Hajdu, who is also responsible for the Federal Economic Development Agency for Northern Ontario (FedNor), says in 2025 alone, the Canadian government, through FedNor, put millions of dollars directly into Northwestern Ontario, including Thunder Bay.

This included more than $4.5 million to support 22 tourism and economic development projects, including projects in Northwestern Ontario and more than $2.6 million for Indigenous-led economic development projects. Outdoor recreation and tourism infrastructure was bolstered by $1.7 million, more than $1 million was spent to support innovation and technology adoption for northern businesses and nearly $5 million was spent on Indigenous-led clean energy and economic development initiatives.

“These investments support job creation, skills development, business growth, and community resilience — and they are already producing results on the ground,” she said.

Additionally, making the National School Food Program permanent, extending Canada-wide childcare agreements, and introducing a tax relief for nearly 22 million Canadians were among these achievements, she said.

“As global trade becomes more uncertain, we are choosing to build our strength at home,” Hajdu said.

“U.S. tariffs, particularly on lumber, steel and other manufactured goods, continue to put pressure on Canadian exporters. It is time to transform our economy from one that is reliant on a single trade partner, and Canada has moved quickly to protect and strengthen sectors most affected by U.S. tariffs.”

This includes measures to help transform the Canadian steel and softwood lumber industries, introducing workforce measures to support, upskill and train workers and a new buy Canada policy.

Hajdu said three federal government accomplishments in 2025 that resonate in the north stand out.

“First, we launched the Buy Canadian policy, backed by $186 million over five years, to prioritize Canadian suppliers in federal procurement and help Canadian businesses, including northern manufacturers, win more contracts,” she said.

“Second, we significantly expanded FedNor investments, ensuring that northern communities receive targeted, place-based support. That combination, procurement power plus regional investment, directly benefits Thunder Bay and Northwestern Ontario.”

She added that this includes the most recent Regional Tariff Response Initiative that is part of the broader Government of Canada tariff plan, which includes $6.5 billion in new measures to protect Canadian businesses and workers.

“Third, through Budget 2025, we are investing $115.2 billion over the next five years in the essentials: community infrastructure, new homes, modern hospitals, and reliable transportation links,” she said.

Hajdu says the biggest challenges in 2025 have been global economic uncertainty, trade disruptions, and the rising cost of doing business.

“Our response has been to stay focused on regional solutions, working directly with communities, Indigenous partners, and industry to ensure federal programs meet local needs, she said.”

Also, this year, millions of dollars have been invested in Indigenous-led economic development projects across Northern Ontario.

Hajdu noted that this includes supporting communities through Initiatives like the Northern Ontario Indigenous Clean Energy Initiative, infrastructure building capacity, planning, and business growth.

“These investments empower Indigenous communities to lead development on their own terms and create shared prosperity across the region,” she said.

As a regional hub and a major port on Lake Superior, she said Thunder Bay will continue to benefit from infrastructure upgrades, resource development in surrounding communities, and new housing projects that support affordability and long-term prosperity.