Federal budget pledges full funding for Mackenzie Valley Highway

Budget 2026 commits Ottawa to fully fund construction of the proposed Mackenzie Valley Highway and some maintenance of the 800-kilometre all-season road. The budget earmarks $3.1 billion through 2031, on top of $405 million announced in September through the Arctic Infrastructure Fund. How much maintenance Ottawa will cover remains under negotiation with the N.W.T. government. The territory has sought this all-in pledge for decades. The budget also proposes $187.4 million over five years, and $24.2 million yearly afterward, for a major-projects entity to help deliver the highway and Taltson hydro expansion. Ottawa links the road to northern defence corridor plans.