Prime Minister Mark Carney announced the country's first national sovereign wealth fund on Monday, pitching it as a way for Canadians to invest in nation-building projects.
Carney said the Canada Strong Fund will invest in major Canadian industrial projects in areas such as energy, infrastructure, mining, agriculture and technology.
The prime minister said the federal government will put up funds starting at $25 billion to invest alongside private investors. He said individual Canadians can also put money into the fund and suggested it would be similar to purchasing a government bond, where the initial investment is protected.
Returns from those investments will be put back into the fund to expand its capacity and build out capital projects in Canada.
Speaking to reporters Monday, Carney compared the fund to a "national savings and investment account." He also called it "the people's fund."
Carney cited the Canadian Pacific Railway as an example of a privately funded project supported with public money that ultimately delivered benefits for generations of Canadians.
He said the fund can support construction of new ports, mines and energy corridors that will have similar national benefits.
"We're taking lessons from our history, which is that a lot of wealth has been created in these transformative projects," Carney said.
"It creates an opportunity to invest alongside for Canadians and spread that wealth over time."
Prime Minister Mark Carney makes an announcement on the Canada Strong Fund, Canada's first sovereign wealth fund, at the Canada Science and Technology Museum in Ottawa on Monday, April 27, 2026.THE CANADIAN PRESS/Justin Tang
Countries such as Norway and many Gulf states already have large sovereign wealth funds. Alberta's Heritage Savings Trust Fund functions in a similar way, by reinvesting proceeds from the province's resource sector.
The Canada Strong Fund will be set up as an independent, arm's-length Crown corporation. The federal government says it will consult over the coming months on the specific design of the investment instrument.
Carney made the announcement Monday morning at the Canada Science and Technology Museum in Ottawa, a day before the Liberal government tables the spring economic update.
The prime minister was asked where the federal government will get the money to cover the initial $25-billion capitalization. He said he didn't want to "front-run" his finance minister's fiscal update.
Finance Minister François-Philippe Champagne, in Montreal to discuss the Canada Strong Fund on Monday, was also asked where the money would be coming from.
Champagne did not answer directly but said the federal government's relatively strong fiscal standing internationally would allow it to borrow at favourable rates.
In Ottawa, Carney suggested there would be "good news" in Tuesday's update on the government's deficits and spending reduction targets.
He was asked by a reporter why the deficit would be lower than projected in the 2025 federal budget back in November.
"Because we're good fiscal managers," he said.
The Liberals' fall budget projected a deficit of $78.3 billion for the last fiscal year, with deficits declining and averaging around $64 billion annually over the five-year horizon.
Carney also pushed back when a reporter suggested the government's revenues would be better because of higher inflation. He noted the annual rate of inflation has been within the Bank of Canada's target range of one to three per cent for the entirety of his time in office.
Many economists predict the federal government's revenue stream will benefit from the recent spike in gas prices tied to the war in Iran. Ottawa has offset some of the higher revenues from the energy shock with affordability measures, such as a pause on the federal fuel excise tax until Labour Day.
Since the fall budget, Statistics Canada has also revised up gross domestic product data from the previous three years, giving the federal government a stronger-than-expected starting point for many of its fiscal guideposts.
This report by The Canadian Press was first published April 27, 2026.
— with files from Kyle Duggan and Sarah Ritchie
By Craig Lord | Copyright 2026, The Canadian Press. All rights reserved.