Manitoba’s 2025 Budget: Historical Capital Investments Planned to Weather Tariff Uncertainty.

Highlights:

• $3.7 Billion investment in capital projects – the largest in Manitoba’s history.
• Hiring 1,255 net new frontline healthcare workers and investing a record $1.2 billion more into Health, Seniors and Long-Term Care.
• Outlining an alternate fiscal framework to respond to the worst-case scenario of across-the-board tariffs.

Yesterday, Manitoba’s Minister of Finance, Adrien Sala delivered his second budget since the NDP took over government in October 2023. Budget 2025, titled Building One Manitoba boasts a record $3.7 billion investment in capital projects – the largest in Manitoba history. With global uncertainty related to tariffs and additional threats from the Trump administration, the government chose to put a focus on growing the economy, protecting jobs, rebuilding healthcare and lowering costs for Manitobans. This while they still insist on meeting their election commitment of balancing the books during their first term in office.

Key capital projects include:

• Building 11 new schools.
• Three new personal care homes.
• Phase 2 of the North End Wastewater Pollution Control Plan.t
• Upgrades to Manitoba Hydro Infrastructure.
• Investing in the Port of Churchill and rail lines to the north.
• Twinning of Highway 1 East & a new interchange on the Perimeter.
• A new Centre for Health Care Excellence in downtown Winnipeg.
• New emergency rooms at Victoria General Hospital and in the Interlake in Eriksdale.

As the cost-of-living challenges continue, Minister Sala announced measures aimed at lowering costs for Manitoban’s, this includes:

• $100 increase to the Homeowners Affordability Tax Credit
• Increasing the Renters Affordability Tax Credit in 2025 and 2026
• Permanent gas tax relief with a 10% reduction
• A one-year freeze on hydro rates
• Free access to provincial parks for 1 year
• Expanding $10-a-day childcare to include non-school days
• $30 million a year in permanent funding for the Universal School Food Program
• $12.4 million in increased supports for low-income Manitobans
• Freeze on long-term crown land leases

Building on Budget 2024, this budget also put significant focus on investment in healthcare, a key pillar of the NDPs election platform in 2023.  Budget 2025 will see significant investments on improving access to healthcare and making Manitoba neighbourhoods, downtowns and safer.

Key healthcare investments include:

• The hiring of 1,255 net new frontline healthcare workers, exceeding their goal of 1,000 announced last year.
• $1.2 billion investment (14 % increase over last year) into Health, Seniors and Long-Term Care, with nearly 70% of the staff increase going directly to frontline health delivery
• Funding to renovate the Children’s ER and beginning the design phase of the new CancerCare headquarters
• The addition of 97 beds to hospitals across the province for a total of 330 new fully staffed beds, since forming government
• Investment into primary care teams by adding 4 new clinics in Winnipeg and Brandon
• $48.2 million in new funding to train more frontline healthcare staff

Safer communities’ highlights include:

• A 9.2% increase to Justice funding to get tough on crime, address the causes of crime and support public safety.
• $80 million to purchase three made-in-Canada water bombers for fighting wildfires
• $424.3 million total funding with a new funding model for Municipalities and Northern Affairs Communities
• $3.8 million for 35 mental health worker positions
• $5 million to support border security
• $3 million for 12 new Winnipeg Police positions

Preparing and Protecting Manitobans from Trump Tariffs

With the threat of tariffs south of the border, building on the Manitoba government’s announcement of tax deferrals for businesses earlier in the month, Budget 2025 outlines how the NDP government is preparing to support Manitobans, and provides an alternative fiscal framework, should President Trump follow through with 25% across the board tariffs, these include:

• Up to $100 million in target supports to help businesses pivot to new markets
• Up to $100 million in loans for Manitoba Businesses
• Up to $100 million in support for farmers and producers
• Up to $100 million for programs and services to support families
• Up to $50 million in new funding to post-secondary institutions to support retraining for Manitoba workers
• Up to $10 million more in student aid grants and $25 million more in student loans to help workers train for new jobs.

To review Building One Manitoba – Budget 2025 please see here.

Learn more about Counsel’s locally based Manitoba team. 

Insights provided by Jodee Mason, Logan Ross, and Counsel’s Western Team.