Weekly Roundup - August 29, 2025
It’s still summer, but governments across the country are ramping up as they prepare for fall sittings, legislative agendas, and fiscal storm clouds. In Ottawa, Prime Minister Mark Carney is balancing international commitments with tough trade negotiations. Ontario’s Premier Doug Ford is tightening control over school boards and pressing ahead with highway infrastructure. And in Alberta, there’s a deepening deficit, amid new digital initiatives and nuclear energy exploration.
Here's what you need to know to stay ahead.
Top Federal Stories
With trade tensions dominating Mark Carney’s first summer on the job, the Prime Minister doubled down on his approach to foreign policy. Joined by the Ministers of Defence, Industry, and Energy, Prime Minister Carney travelled to Ukraine, Poland, Germany, and Latvia to make significant commitments regarding security and trade.
During the trip, the Prime Minister made major announcements regarding:
The details of a $2 billion military assistance package for Ukraine. The Prime Minister also delivered a major foreign policy speech in celebration of Ukrainian Independence Day.
Canada as the Lead Nation of the 2026 International Defence Industry Exhibition in Kielce, Poland.
A joint Declaration of Intent on critical minerals cooperation with Germany, and
An extension of Operation REASSURANCE in Latvia.
Security and defence were not the sole focus of the trip, however. The Prime Minister and Energy Minister Tim Hodgson used the opportunity to expand trade and investment opportunities for Canadian critical minerals and LNG. This included disclosing that major port infrastructure announcements are forthcoming within weeks, targeting the Eastern ports, such as the Port of Montreal, to increase exports of natural gas.
Upon their return, Prime Minister Carney launched the new Major Projects Office (MPO), a key advancement of the government’s promise to fast-track nation-building projects. Headquartered in Calgary, the MPO will have offices across Canada and be led by Dawn Farrell, Chair of the Board of Directors of the Trans Mountain Corporation.
It was not all rosy for the government, however, as it was announced that the Canadian economy shrunk by 1.6% due to the imposition of US tariffs. This marked the first time the Canadian economy had contracted in nearly two years.
Meanwhile, Canada-US Trade Minister Dominic LeBlanc, and Public Safety Minister Gary Anandasangaree and Justice Minister Sean Fraser took to Washington this week to continue negotiations with US Commerce Secretary Howard Lutnick and Attorney General Pam Bondi, respectively. The Team Canada approach is to target specific irritants that President Trump has identified as justification for the imposition of tariffs, including illegal migration and the fentanyl crisis.
Adding to the Liberal headaches just weeks before the House of Commons returns, it was announced that the government ran a $3.3 billion deficit in the first three months of this fiscal year. The federal budget is set to be tabled this October, with a promised 7.5% in spending cuts.
Top Ontario Stories
Tensions with Ontario’s school boards continue to grow. Five boards are now under provincial supervision, and Premier Ford has made it clear he believes the public is “done” with trustees who mismanage money. He pointed to examples of costly retreats and overseas purchases as justification.
Education Minister Paul Calandra went further, suggesting the province may consider eliminating elected trustees altogether. Opposition parties argue this would undermine local accountability and diminish parents’ voices, while the Ontario Liberals are launching a “Local Matters in Education” tour to highlight the role of community representatives. The fight is shaping up as less about isolated incidents and more about whether decision-making power should be centralized.
On infrastructure, the government is pressing ahead with Highway 413, with contracts having been awarded, Premier Ford insists the 52-kilometre project will ease congestion. What’s missing are details on cost or completion timelines. Experts warn this could invite overruns, as seen with projects like the Eglinton Crosstown. Still, the government appears focused on showing visible progress; shovels in the ground may outweigh budget questions in the government’s political calculus.
Trade friction with Washington also loomed large. Even as Prime Minister Mark Carney scaled back tariffs to keep negotiations moving, Premier Ford maintained Ontario’s ban on American alcohol at the LCBO. He framed the move as support for local producers, though critics say it offers symbolism more than solutions, particularly as Diageo confirmed its Crown Royal bottling plant in Amherstburg will close and shift some operations to the U.S.
In energy news, the government highlighted new investments, including an increase to $25 million annually for Indigenous energy projects. Meanwhile, consultations on Bill 5 showed many municipalities and First Nations remain concerned it could weaken environmental protections and treaty rights.
The week also brought announcements on education and community funding. The government has promised legislation to end animal testing on dogs and cats after a whistleblower exposed research in London. The province unveiled $889 million for 41 new and renovated schools, $16.5 million for Black youth programming, and celebrated Canadian firms securing contracts for Volkswagen’s new EV gigafactory in St. Thomas. With the legislature not set to return until October 21, these issues will continue to play out in the public arena before formal debates resume.
Top Alberta Stories
Alberta is launching a province-wide engagement on the role of nuclear energy in meeting future electricity demand. With population growth driving rising energy needs, the government has struck a six-member Nuclear Energy Engagement and Advisory Panel – chaired by Parliamentary Secretary Chantelle de Jonge – to gather input from Albertans, Indigenous communities, municipalities and industry.
A public survey, open until September 25, will inform the province’s first nuclear energy roadmap, alongside an industry request for information running to October 25.
Last week Premier Danielle Smith foreshadowed a tough fiscal situation and this week Minister of Finance and President of Treasury Board, Nate Horner, confirmed it. Alberta’s first-quarter update projects the 2025-26 deficit will reach $6.5 billion, up $1.3 billion from Budget 2025’s forecast.
The forecasted price of oil this year is $63 USD per barrel, a decrease of $26 USD per barrel since 2022, when the price of oil averaged over $89 USD per barrel. Budget 2025 projected a $5.2 billion deficit at US $68 a barrel. With non-renewable resource revenues making up nearly a quarter of all provincial income, every $1 decline in WTI reduces government revenues by about $750 million.
In his update, Minister Horner emphasized Alberta is facing pressure from its growing population which is projected to increase 2.4 per cent in 2025-26. Adding to that strain is ongoing public sector bargaining.
This morning the Minister of Finance and Minister of Education and Childcare, Demetrios Nicolaides, held a news conference after negotiations with the Alberta Teachers’ Association (ATA) broke down. With school set to start next week for most students, Minister Nicolaides’ didn’t mince words accusing the ATA of “playing politics” by rejecting the province’s latest offer. The Finance Minister reminded reporters of the province’s fiscal situation saying he’s especially mindful of sustainable public sector collective agreements.
Earlier this week the Minister issued a statement on bargaining between the Government of Alberta and the Alberta Union of Provincial Employees (AUPE). In late July, AUPE and the government entered an enhanced mediation process to resolve outstanding issues in the current round of collective bargaining. The mediator produced non-binding recommendations that included a general salary increase of three per cent each year for four years. Members must decide whether to accept the settlement by September 3.
A number of other announcements were also rolled out this week, including new digital and innovation initiatives. Albertans will soon have the option to carry their health cards on their phones with the launch of the Alberta Wallet, beginning with the new Mobile Health Card. The government says the card will offer a more secure, durable, and convenient alternative to paper, with an integrated driver’s licence–health card expected in 2026.
A new levy framework has also been introduced for large-scale AI data centres. Effective December 2026, a two per cent levy on computer hardware will apply to centres of 75 megawatts or greater, but the levy will be fully offset against provincial corporate income taxes once companies are profitable. The approach, shaped by industry consultation, is meant to balance fairness for Albertans with competitiveness for investors, while ensuring predictable costs for businesses in this rapidly expanding sector.
Finally, the Minister of Education is looking into a leaked internal list that revealed more than 200 titles are set to be removed from Edmonton Public Schools’ libraries this fall under a new provincial policy governing sexually explicit content. Books marked for removal include The Handmaid’s Tale, Brave New World, and I Know Why the Caged Bird Sings. Education Minister Demetrios Nicolaides stressed that his office did not provide the list and has asked the school board to clarify its process, saying the intent is to set standards for age-appropriate materials, not to ban books outright.
Critics, including library advocates, argue the policy is already curbing access to important literature and creating “a culture of fear” in classrooms by narrowing the scope of what students can read and discuss.
Upcoming Events Calendar
September 2, 2025: Alberta Next panel Medicine Hat town hall
September 11, 2025: Alberta Next panel Lethbridge town hall
September 12-14, 2025: Ontario Liberal Party AGM
September 15, 2025: House of Commons returns
October 20, 2025: Ontario Legislature returns
October 27, 2025: Alberta Legislature returns
January 29-31, 2026: Conservative Party of Canada National Convention
March 29, 2026: Federal NDP Leadership Race Results Announcement
