Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news related to residential and commercial construction and infrastructure, and related government initiatives. Every Monday, we break down the most important updates in this space in under five minutes.

Dates: 2025-09-28 to 2025-10-04

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Committee Calendar
• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

This Week's Parliamentary Committee Calendar

• Senate AGFO Committee to Review Wildfire Impacts on Forestry and Construction: On October 2, 2025, the Standing Senate Committee on Agriculture and Forestry met to examine national wildfire impacts. The meeting featured testimony from Matt Gemmel, Federation of Canadian Municipalities (FCM), who advocated for coordination across governments, expanded firefighting resources, and improved emergency management relevant to construction, forestry, and infrastructure sectors.

Canadian Federal GR News

Canadian Government Extends EI and Workforce Support Measures in Response to Tariffs

Employment and Social Development Canada introduced a package of measures targeting workers and industries impacted by tariffs and market shifts. An additional $450 million will be provided over three years under the Labour Market Development Agreements, supplementing a $120 million package for steel and softwood lumber workers announced previously. These funds will support training and job-matching services for workers facing displacement, with explicit outreach aimed at those affected by U.S. tariffs and shifts in global demand. Two temporary Employment Insurance provisions—waiving the one-week waiting period and suspending the treatment of monies paid on separation—will be extended to April 2026. An extra $1.6 billion over five years is allocated to provide up to 20 additional weeks of EI coverage (to a maximum of 65 weeks) for long-tenured workers, potentially impacting about 190,000 beneficiaries. In addition, $50 million is earmarked for Job Bank modernization, including artificial intelligence-driven job matching and new digital tools for applicants and employers.

Sources: Announcements: www.canada.ca

Over $50 Million Delivered to New Brunswick Communities for Local Infrastructure

The federal government announced more than $50 million in new funding for infrastructure projects across New Brunswick through the Canada Community-Building Fund. Allocations are intended for both essential and recreational infrastructure, spanning local roads, bridges, water systems, and public works. The Town of Quispamsis will use a portion of these funds to upgrade an aging lift station on Gondola Point Road, increasing wastewater capacity, improving service efficiency, and reducing local flood risk. The federal approach provides municipalities with flexibility to address current and anticipated infrastructure needs associated with growing populations and expanded housing requirements.

Sources: Announcements: www.canada.ca

PBO Testifies on Housing Crisis and Affordability at Senate Banking Committee

The Senate Banking, Commerce and the Economy Committee met to examine the housing crisis, with testimony from the Office of the Parliamentary Budget Officer (PBO), including Jason Jacques and his staff. Senators inquired about the fiscal implications of housing policies, such as extending a 5% HST rebate for first-time buyers, but the PBO reiterated its mandate is restricted to costing official proposals. Discussion addressed regulatory barriers, demographic drivers—especially persistent high levels of immigration since 2022—, and variations in affordability. Interest rates and stagnant wages were cited as influencing regional housing markets. The PBO highlighted a need for improved data collection to inform future policy decisions but declined to offer specific recommendations.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Hears on Housing Supply, Skilled Trades, and Construction Labor Shortages

Senators discussed construction sector labor shortages, with several remarking on the consequences for project delivery and housing supply. Other topics raised during this session included recent or pending legislation relevant to real estate, such as Bill S-228 on non-consensual sterilization and Bill S-230 on soil health. The Senate approved a bill merging two mutual insurance companies and debated youth participation in the democratic process. The need for greater regional input and the importance of reliable RCMP staffing for remote infrastructure projects were also discussed. Senators acknowledged sector-specific workforce shortages as a factor impeding construction and affordable housing objectives.

Sources: Transcripts: senparlvu.parl.gc.ca

Competition Bureau Chief Points to Government-Imposed Barriers Across Sectors

Commissioner of Competition Matthew Boswell addressed the annual Competition Summit, arguing that productivity growth in Canada lags due in part to regulatory fragmentation and barriers to labor mobility. Boswell cited extensive internal trade barriers and licensing requirements for skilled trades as constraints. He announced that an independent study will soon be released to quantify potential productivity gains if regulation is harmonized in key sectors. The Bureau has also launched a market study into SME financing competitiveness following concerns about the cost and availability of capital for small construction firms. Boswell noted the contribution of startups and business entry to sectoral innovation.

Sources: Announcements: www.canada.ca

Federal and Ontario Governments Finalize $400 Million Support for Algoma Steel

Ottawa and Queen's Park have agreed to a $400 million support package for Algoma Steel Inc. under the Large Enterprise Tariff Loan facility, with an additional $100 million from Ontario under identical terms. The agreement is intended to secure operations and employment while facilitating Algoma’s pivot away from reliance on U.S. markets and toward domestically focused production. The steel industry’s role in supporting construction, manufacturing, and energy infrastructure was highlighted as a rationale for the joint assistance.

Sources: Announcements: www.canada.ca

Machinery, Equipment, and Sawmill Data Released by Statistics Canada

Statistics Canada released new data on machinery and equipment prices for July 2025 and sawmill output for the same period. The July Machinery and Equipment Price Index (2016=100) is now available. Sawmill production in July reached 3,832.4 thousand cubic metres, down 4.1% from June but up 4.1% over July 2024. These metrics contribute to ongoing analysis of input costs and supply chain conditions across construction and building materials sectors.

Sources: Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca

Hitachi Energy Canada Receives $40 Million for HVDC Expansion Projects

The federal government will invest $40 million through the Strategic Response Fund to expand Hitachi Energy Canada’s transformer manufacturing in Varennes, Quebec. The package includes funding for a new test laboratory and a simulation centre to support high-voltage DC (HVDC) research. Demand for primary grid infrastructure, including large transformers, remains acute, with manufacturers reporting lead times of up to five years. The project aims to add 500 skilled positions, including student placements, and secure domestic supply chains for critical grid equipment.

Sources: Announcements: www.canada.ca

Housing, Infrastructure and Communities Canada Funds New Net-Zero Ronald McDonald House in Vancouver

A new 130,000-square-foot Ronald McDonald House BC & Yukon will be constructed with up to $18.8 million in federal funding. The Willow House facility will double current accommodation capacity with 75 family suites and expanded common areas. The design meets net-zero energy targets and is intended to deliver long-term, affordable accommodation for families with extended hospital stays. The expansion is part of broader efforts to address the need for supportive, accessible housing associated with major medical facilities.

Sources: Announcements: www.canada.ca

Parliament Reviews Canada’s Debt, Deficit Forecasts, and Fiscal Policy Impacts

The Senate National Finance Committee met with the Parliamentary Budget Officer and Desjardins Group’s Jimmy Jean to assess the fiscal outlook, government borrowing, and the sustainability of debt levels. The discussion included tariff effects on regional industries, labor market risks, and the impact of macroeconomic and trade policy on housing and infrastructure investment. Calls were made for improved economic predictability and for capital budgeting frameworks to inform long-term infrastructure development. The committee explored distinctions between Canadian and U.S. monetary policy and strategies for private sector participation in major projects.

Sources: Transcripts: senparlvu.parl.gc.ca

Federal Funding Supports Southern Ontario’s Tech Innovation Across Key Sectors

TechAlliance of Southwestern Ontario received $3.5 million to launch Polaris, an initiative expected to grow over 115 high-potential firms. The program targets innovation in sectors including artificial intelligence, clean growth, housing manufacturing, and zero-emission vehicles. Offerings include training, mentorship, funding for entrepreneurs, and leadership development resources, aiming to enhance adoption of clean technology and expand supply chains relevant to housing and modern construction.

Sources: Announcements: www.canada.ca

US Federal GR News

White House Announces Tariffs on Timber, Lumber, and Derivative Products

On September 29, 2025, President Trump issued a proclamation imposing a 10% tariff on softwood timber and lumber imports and a 25% tariff on certain upholstered wooden products, kitchen cabinets, and vanities, effective in higher rates from January 1, 2026. The move follows a Commerce Department investigation citing risks to U.S. national security from reliance on imports and aims to support domestic wood product manufacturing and safeguard supply chains essential to defense and infrastructure. Exceptions are made for the UK, EU, and Japan under specified agreements. The proclamation calls for increased monitoring and addresses concerns over undervaluation and trade practices.

Sources: White House Announcements: www.whitehouse.gov

FHFA Proposes Significant Reductions to Fannie Mae and Freddie Mac Housing Goals for 2026–2028

The Federal Housing Finance Agency (FHFA) released a proposed rule for public comment seeking to sharply reduce benchmark levels for single-family and multifamily housing goals at the government-sponsored enterprises (GSEs) from 2026 to 2028. The proposed rule lowers targets for low- and very-low-income home purchase mortgages—reducing the low-income home purchase goal from 25% to 21%, and the very low-income goal from 6% to 3.5%. Multifamily goals remain at 61% for low-income and 14% for very low-income units. The agency cites concerns that aggressive goal levels have distorted pricing and driven lenders to favor GSE loans over other products, resulting in higher housing costs for middle-class borrowers and crowding out private capital. The proposed rule seeks comment through November 3, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

GSA Moves to Automate Construction Payrolls and Certification Process

The General Services Administration requested public comment on the continued collection of certified payrolls for federal construction contracts over $2,000, as required under FAR Clause 52.222-8. Recent changes permit contractors to submit payroll data electronically, a shift intended to improve efficiency and minimize errors that could lead to wage adjustments or compliance actions. For FY2023, 182 construction contractors (170 prime, 12 subcontractors) submitted 9,464 payroll responses in total, incurring an annual reporting burden of 5,205 hours. Public comments are due by November 3, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

HUD Further Delays NSPIRE Compliance Dates for Key Federal Housing Programs

HUD announced a third extension to the compliance date for the National Standards for the Physical Inspection of Real Estate (NSPIRE) rule for Housing Choice Voucher, Project-Based Voucher, and Section 8 Moderate Rehabilitation programs, pushing deadlines to February 1, 2027. Public housing agencies cited challenges with landlord participation, software readiness, and HUD application release delays as reasons for needing additional time. HUD also extended compliance for Community Planning and Development programs—including ESG, CoC, HOME, and Housing Trust Fund—to October 1, 2026, due to program-specific standards pending publication. PHAs and grantees may implement NSPIRE standards voluntarily in advance of new deadlines.

Sources: U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov

HUD Seeks Nominations for Manufactured Housing Consensus Committee

The Department of Housing and Urban Development (HUD) issued a call for nominations to fill vacancies on the federal Manufactured Housing Consensus Committee (MHCC), the advisory body required by the Manufactured Housing Improvement Act of 2000. Seven producers, seven users, and seven general interest/public officials will be appointed for staggered three-year terms. The MHCC reviews and recommends manufactured housing construction standards and procedural rules. Nominations, including self-nominations, will be accepted until October 30, 2025. Members serve voluntarily but are reimbursed for travel.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Nova Scotia Removes Regulatory Barriers to Residential Construction in Halifax Regional Municipality

Nova Scotia designated HRM an interim planning area, requiring immediate adoption of minimum planning rules to enable residential development and accelerate housing supply, including suburban growth near transit corridors.

Sources: Provincial Announcement: news.novascotia.ca

Ontario Awards Milton $8.4 Million for Exceeding 2024 Housing Targets

The Town of Milton will receive $8.4 million under Ontario’s Building Faster Fund after starting nearly 130% of its 2024 housing target. The grant is earmarked for housing-enabling infrastructure and supports local housing approvals.

Sources: Provincial Announcement: news.ontario.ca

British Columbia and Canada Fund New Training Programs for Construction Trades and Equipment Operators

Through $3 million in joint funding, seven new training projects will support construction workers, heavy equipment operators, and building service workers, targeting those facing barriers to employment in multiple regions.

Sources: Provincial Announcement: news.gov.bc.ca

More than $50 Million Allocated to New Brunswick for Local Infrastructure Projects

New Brunswick will distribute more than $50 million from the Canada Community-Building Fund in 2025, supporting municipal projects in roads, wastewater, drinking water, and other infrastructure categories.

Sources: Provincial Announcement: www2.gnb.ca

Kwantlen Polytechnic University and University of Victoria Advance On-Campus Student Housing Projects

Surrey’s KPU is planning its first on-campus student residence, with over 350 beds and priority access for Indigenous students. Separately, UVic will add over 500 beds for upper-year and graduate students, designed to LEED Gold standards.

Sources: Provincial Announcement: news.gov.bc.ca, Provincial Announcement: news.gov.bc.ca

Government Consultations

Feedback Sought on Riverside Generating Station Project

The Impact Assessment Agency of Canada has opened a consultation for comments on the Initial Project Description of the Riverside Generating Station Project. The submission window is open until October 6, 2025.

Sources: Canadian Government Consultations: iaac-aeic.gc.ca

What We're Reading This Week

• Globe and Mail: Housing advocates protest Vancouver’s densification plan: Activists voice concerns on city’s approach to increased housing density.
• Globe and Mail: B.C. industry hopes to create a model for modular housing across Canada: Pilot explores province-wide prefab solutions.
• CBC: Committee supports new housing plan, but pares back developer fee holiday: Ottawa’s committee endorses housing plan with reduced incentives.
• Globe and Mail: Home builders anxious for details on how Ottawa’s prefab policy will work: Uncertainty remains on federal prefab implementation.
• Toronto Star: Indigenous Communities Get New Tools for Housing Crisis: Partnership creates solutions for remote Indigenous housing.
• CBC: Facing no income for 6 months, these construction workers might have to abandon their Canadian dreams: Construction worker struggles in Atlantic Canada.
• Globe and Mail: Building stronger futures together: Industry-wide efforts on skills and supply chains.
• Toronto Star: How procurement can scale cleantech solutions — and help grow Canada’s economy: Examining procurement’s role in clean technology.
• CBC: Committee supports new housing plan, but pares back developer fee holiday: Ottawa committee trims developer holiday.
• Globe and Mail: Opinion: Let’s build Canada now – or risk falling behind: Commentary on infrastructure and regulatory pace.

.