Provincial And Territorial Update – December 19, 2025

This week in government

This week across Canada, provincial governments faced a mix of fiscal strain, leadership changes, and policy pressure points.

Atlantic provinces revealed widening deficits, advanced or debated major energy projects, and announced new responses to homelessness, health care capacity, and municipal governance challenges.
Quebec saw significant political turnover, including a Liberal leadership resignation, the appointment of an interim leader, and the departure of the health minister amid stalled reforms and weakening government polling.
Ontario focused on economic positioning, defending skills training programs under scrutiny, promoting Toronto as a potential global defence-finance hub, and announcing new tourism and regional investment initiatives.
Prairie provinces dealt with climate and infrastructure stress, rising public housing demand, health system pressures, and heightened political tension around equalization, immigration, and citizen-led referendums.
British Columbia and the territories addressed governance stability, paused contentious tax changes, finalized labour agreements, and confirmed reductions or shifts in social services.

Overall, the week reflected governments under pressure to balance budgets, manage political volatility, and respond to economic and social system stress while continuing to compete for investment and public confidence.

Why it matters to business

1. Fiscal pressure is reshaping government priorities: Nearly every province flagged larger-than-expected deficits or worsening financial outlooks. For businesses, this signals:

Increased scrutiny of public spending
Greater competition for grants, subsidies, and infrastructure dollars
Higher likelihood of future tax, fee, or regulatory adjustments
Governments are moving from expansion to triage mode, which changes how fast decisions get made and what gets funded.

2. Energy and climate projects are advancing unevenly: While low-carbon projects moved forward in places like Nova Scotia, other regions faced resistance to traditional power generation and infrastructure builds.

Expect longer approval timelines
More community consultation requirements
Stronger emphasis on ESG alignment and regional benefit arguments
Energy-intensive industries and infrastructure developers should plan for more complex stakeholder landscapes.

3. Workforce systems are under visible strain: Health care negotiations, housing shortages, immigration slowdowns, and labour agreements dominated headlines.

Labour availability is becoming more regionally uneven
Wage pressure in public-sector-adjacent markets will spill into private hiring
Training funds and workforce programs are increasingly politicized, not automatic
For employers, this makes retention, upskilling, and local training partnerships more valuable than ever.

4. Political volatility increases policy risk: Leadership resignations, ethics investigations, referendum rule changes, and sovereignty talk all point to shorter political time horizons.

Policies may shift quickly
Pilot programs may not become permanent
Long-term investments need clearer risk buffers
Businesses with multi-year projects should stress-test assumptions against potential government change.

5. Regions are competing harder for investment narratives: Ontario’s defence-finance push, Atlantic Canada’s energy ambitions, and western provinces’ fiscal grievances all show governments actively trying to reposition their economies.

Jurisdiction matters more again
Location-based incentives and branding are back in play
Inter-provincial divergence is increasing, not shrinking
Smart firms will tailor their messaging, partnerships, and investment timing province by province.

New Brunswick

Progressive Conservative MLA Kris Austin says he won’t be running for the party leadership next year. Austin, a former leader of the People’s Alliance party who became a prominent cabinet minister in the government of Blaine Higgs, said he will sit out the contest. “I can confirm I am holding off on a leadership run at this time,” he said in a brief email to CBC News.
A claim by New Brunswick Premier Susan Holt that petroleum refiners will pay the $1 million per week cost of the gasoline price cut her government orchestrated last weekend does not appear to be unfolding that way. The Premier’s Office is clarifying a comment she made about wholesalers and retailers having a “protected margin” on gasoline sales in the wake of the price reduction, acknowledging that margins for the two groups are not guaranteed.
The New Brunswick government has a strategy for reducing chronic homelessness in the province by 40 per cent over the next three years, Housing Minister David Hickey said Thursday. Part of the strategy includes new supportive housing projects in Bathurst and Moncton, Hickey said. New Brunswick has seen a sharp increase in homelessness over the past six years, he said while announcing the strategy, called “A Path Home,” in Saint John.
There is no ideal site for a new 500-megawatt gas and diesel-fired power plant in New Brunswick, according to N.B. Power vice-president Brad Coady on Wednesday evening. Coady spent two hours at a podium in Tantramar council chambers, answering questions about the plan to contract a United States company, ProEnergy, to build and operate the billion-dollar plant near Centre Village, located in a rural corner of the municipality. About 60 people attended the special council meeting to hear Coady talk about the need for the new plant and its potential impact on the surrounding area.

Nova Scotia

A senior official in Nova Scotia’s Department of Opportunities and Social Development says improvements have been made in the child-welfare system since the 2020 death of a child shortly after he returned home from foster care. Tracy Embrett, the department’s executive director of service delivery, spoke with the CBC days after a Yarmouth, N.S., court case this week shed light on the tragedy.
A proposal for an industrial plant on Nova Scotia’s Eastern Shore to produce a low-carbon alternative to traditional jet fuel has cleared its first regulatory hurdle, receiving environmental approval from the province. In a news release, Nova Sustainable Fuels — a company backed by European energy giant Octopus Energy Generation — called it “one of Eastern Canada’s most ambitious energy projects,” and said the approval is an important step forward.
The Nova Scotia government is facing a dire financial scenario, with a deficit still on track to exceed $1 billion and no expected population growth to help boost revenues. Finance Minister John Lohr released the December update for his government’s 2025-26 budget on Thursday and the numbers continue to look grim. The deficit is now projected at nearly $1.3 billion, up about $65 million from September. Meanwhile, the Finance Department has updated population growth projections to 0.5 per cent over the next 10 years based on the current federal government immigration policy.
Nova Scotia’s population dropped by nearly 1,400 people in the third quarter of 2025, marking the first decline since 2020 and the largest decline in a decade. Statistics Canada released figures on Wednesday for all provinces and territories. Nova Scotia was part of a national trend, and the agency noted that population declines were mainly due to changes in federal immigration policy. The decline marks a notable shift following a population boom that kicked off during the COVID-19 pandemic, when people from other provinces flocked to Nova Scotia and international immigration was high.

Prince Edward Island

Prince Edward Island’s deficit is now nearly double what the government initially estimated in April, according to the province’s fall fiscal update released Thursday. In its 2025-26 operating budget, the governing Progressive Conservatives said the deficit would be $183.9 million. Thursday’s second-quarter update now projects it to be $367.4 million. The total deficit won’t be known until the spring.
Three of the biggest players in P.E.I.’s health-care system have reached an agreement that sets more flexible models for how many patients family doctors can and should handle. Earlier this year, the Medical Society of Prince Edward Island entered mediation with the province’s Department of Health and Wellness and Health P.E.I. over new operational guidelines for family doctors’ workloads. The three parties have now agreed on an accountability framework for longitudinal family medicine in P.E.I., according to a joint news release issued Thursday morning.
Herb Dickieson has put his name forward to run for the leadership of the New Democratic Party of Prince Edward Island. Dickieson is a retired physician and a former New Democrat MLA, having represented the party in the legislature from 1996 to 2000. To date, he remains the only elected NDP MLA in the province’s history. Dickieson also served as the leader of the provincial party from 1995 to 2002. The leadership race follows the resignation of Michelle Neill, who stepped down in late August after holding the position since April 2022.
The Prince Edward Island Fishermen’s Association is calling on the federal government to follow through on its promise to continue the Atlantic Fisheries Fund, saying uncertainty around the program’s future is creating “trepidation” within the industry. The fund is a partnership between the federal and provincial governments to invest in the seafood industry. The PEIFA’s concerns echo those raised recently by Atlantic premiers. In a joint news release last week, the premiers said they are concerned that, despite an election commitment to not only continue the fund but increase it by 20 per cent, the federal Liberal government is set to end the program at the end of March.

Newfoundland and Labrador

In a rare use of the provincial government’s powers, the Department of Municipal and Community Affairs has dismissed the entire town council in Victoria, N.L., and appointed a temporary administrator to oversee the affairs of the Conception Bay North community of nearly 1,700 residents. In a letter to ousted town councillors obtained by CBC News, Minister Chris Tibbs wrote that the decision was in the “best interest” of the town after weeks of infighting and dysfunction
Opposition parties didn’t wait long to raise concerns after Premier Tony Wakeham announced his independent review committee, tasked with looking over the Churchill Falls memorandum of understanding signed with Quebec by the previous Liberal government. Independent oversight of the MOU was first questioned by the PCs. Now the Liberals are taking their swings. Fred Hutton, Opposition energy critic, rebuked how the panel is any more independent than the one that was formed under his party months ago.
Newfoundland and Labrador’s chief medical officer of health is urging residents to get a flu shot ahead of the holidays. Dr. Janice Fitzgerald said flu season had an early start across Canada, and only 20 per cent of eligible people in Newfoundland and Labrador have received the vaccine so far. “We don’t usually start seeing the peak … here till after Christmas, you know, later in January,” Fitzgerald told reporters on Thursday morning. Her concerns come as a surge of influenza cases among school-aged kids in Ontario has been linked to multiple recent deaths in that province.
Newfoundland and Labrador Finance Minister Craig Pardy said the province’s financial bottom line is “deeply troubling,” as he delivered his first fiscal update on Tuesday at Confederation Building in St. John’s. The province’s projected deficit has increased to $948 million — up from the previous Liberal government’s August projection of $626 million. “There is no sugar-coating; this number is deeply troubling. These structural challenges will take time to fix,” Pardy said.

Quebec

The Quebec Liberals have named Marc Tanguay as their interim leader following the resignation this week of Pablo Rodriguez. Tanguay had been named interim leader after former leader Dominique Anglade stepped down in November 2022, and had remained in the role until Rodriguez was elected in June. Party president Rafael P. Ferraro says Tanguay’s experience and judgment make him the right person to ensure stability as the Liberals prepare for a new leader.
With his wife and daughter by his side, Pablo Rodriguez formally announced his resignation as leader of the Quebec Liberal Party. The resignation follows a six-month tenure marked by internal discord and allegations that party members engaged in vote-buying during his leadership race. Rodriguez has denied any wrongdoing. “The past weeks have been difficult,” Rodriguez said Thursday. “For me, and more importantly, for my family and my party.” Rodriguez said he leaves the post with his “head held high,” adding that he has always conducted himself ethically and with integrity.
Quebec Health Minister Christian Dubé is stepping down. In a Facebook post, Dubé cited difficult negotiations with the unions representing doctors in Quebec as a key reason for his resignation. In the post, Dubé said he was also leaving the Coalition Avenir Québec (CAQ) and signalled that he was upset with the government’s backing off on many of its planned health-care reforms. He will remain as an Independent MNA representing the South Shore riding of La Prairie until the end of his mandate, he said.
Once Quebecers realize PQ wants a referendum, their numbers will go down, the premier says. Time may be running out for François Legault. After seven years as the province’s premier, the leader of the Coalition Avenir Québec (CAQ) is saddled with disastrous polling numbers that suggest his party will lose the next election and be wiped off the political map. In an interview this week with Radio-Canada’s Téléjournal host Patrice Roy, Legault reiterated that he wants to remain the party’s leader.

Ontario

Gov. Ron DeSantis has taken aim at Ontario Premier Doug Ford for his planned boycott of Florida, saying tourism to the Sunshine State is up and pointing out that its NHL teams have won trophies more recently than Toronto’s. Ford said on Monday he wouldn’t be taking his regular winter vacation to Florida because of U.S. President Donald Trump’s tariffs, which have led to major layoffs in Ontario’s auto and steel sectors. Speaking at an unrelated event, Ford said he was planning to boycott the state — but said he wouldn’t tell others to stay away.
Premier Doug Ford defended the province’s Skills Development Fund Friday in the wake of a newly launched ethics investigation into Labour Minister David Piccini’s dealings with that fund. Ontario Integrity Commissioner Cathryn Motherwell opened an investigation into Piccini after the provincial Liberals and New Democrats alleged he breached ethics rules by distributing skills training funding. “I know he’ll co-operate with the integrity commissioner,” Ford said of Piccini at an unrelated news conference in Buffalo, N.Y. Ford did not answer a question about whether he would fire Piccini.
Ontario Premier Doug Ford has endorsed Toronto as the headquarters for a new multinational bank dedicated to financing defence projects, contingent on Canada’s confirmation as the host nation. Toronto is one of a handful of Canadian cities, including Ottawa, Montreal and Vancouver, pitching itself as the ideal place to house the Defence, Security and Resilience Bank being established by NATO members and their Indo-Pacific allies. If the bank lands in Canada, it’s expected to create 3,500 jobs in defence finance, according to Kevin Reed, president of the bank’s development group.
Premier Doug Ford was in Niagara Falls, Ont., on Monday, announcing a new strategy to add attractions and expand services in the area. Ford was joined by Niagara West MPP Sam Oosterhoff, ministers of transportation and tourism Prabmeet Singh Sarkaria and Stan Cho, and mayors of cities within the Niagara Region, including Niagara Falls Mayor Jim Diodati. “This is more than just tourism … it’s economic growth, job creation, investment and prosperity,” Ford said.

Manitoba

A Winnipeg Hanukkah event saw beefed-up police presence days after a similar ceremony was interrupted by a man who went on an antisemitic tirade. Organizers of Thursday’s menorah lighting ceremony at the Asper Jewish Community Campus took “extra precautions” following a recent incident at the Health Sciences Centre and a deadly mass shooting in Australia, the Jewish Federation of Winnipeg said. Jeff Lieberman, the foundation’s president and CEO, said that includes a big police presence, as with other events held this week marking the Jewish holiday.
The number of people waiting for public housing in Manitoba is the highest it’s been in five years, and advocates say the government’s hyperfocus on ending homeless encampments is leaving other low-income families in need behind. In September 2023, a CBC investigation revealed public housing in Manitoba was in crisis. More than 5,000 people were on Manitoba Housing’s waitlist while thousands of units remained vacant, awaiting repairs. Two years later, and with a new NDP government, the waitlist has ballooned.
Faced with a third straight drought, Manitoba Hydro says it could be looking at yet another significant financial loss once its fiscal year ends in March. The provincial Crown corporation is reporting a net loss of $293 million for the first six months of the 2025-26 fiscal year, compared with a net loss of $123 million during the same period last year. The corporation’s second-quarter update states that ongoing dry conditions have led to lower water levels, and wildfires exacerbated by the dry conditions have necessitated infrastructure repairs and replacements.
Ron Schuler, a veteran Progressive Conservative MLA who has served in Manitoba’s legislature for more than 25 years, has announced he will not seek re-election. Schuler said he will continue to represent the constituents of Springfield-Ritchot until the next election, slated for Oct. 5, 2027. He held two roles in cabinet: first minister of Crown services under Premier Brian Pallister, and then infrastructure minister. He previously held several critic positions.

Saskatchewan

People impacted by Saskatchewan’s devastating 2025 wildfire season are being asked to share their experiences as part of an independent review. MNP, the consulting firm hired to conduct the review, has opened a public survey for residents, evacuees and communities affected by the fires, according to a news release by the Saskatchewan government. Responses will be anonymous and used to help strengthen future wildfire preparedness and response, the release says.
Flu cases in Saskatchewan are on the rise, with the deadly influenza A strain hitting children and the elderly especially hard, and much of the province is unvaccinated against the virus. “We are seeing a ton of influenza A in terms of test positivity. I ran down this morning to check, and we’ve got a whole list of positives that we’re reporting today from our first run this morning,” said Joseph Blondeau, head of clinical microbiology at Saskatoon’s Royal University Hospital and provincial lead for clinical microbiology with the Saskatchewan Health Authority.
Saskatchewan Premier Scott Moe is not giving up the fight to change the federal equalization system for the provinces. In a Dec. 11 post on X, he included a map showing that his province, Alberta, and B.C. will receive nothing from 2026 equalization. Several eastern provinces are set to get substantial sums: Quebec $13.9B, Nova Scotia $3.5B, New Brunswick $3.3B. Ontario is getting less, $406M, Newfoundland and Labrador is in line for $182 million, while the smallest province in the country will be getting $723M.
As Saskatchewan turns the page on 2025, the Official Opposition New Democratic Party says the past year has underscored both the growing challenges facing residents and the expanded role the party is playing inside and outside the Legislature. Leader of the Opposition Carla Beck says the results of the most recent provincial election fundamentally changed the dynamics at the Legislature. The Saskatchewan NDP doubled its number of MLAs, increasing its ability to scrutinize government decisions, amplify community concerns, and advance alternative policy proposals.

Alberta

Alberta Premier Danielle Smith’s government is increasing the cost of applying for a citizen-initiated referendum by 5,000 per cent, saying it’s about ensuring applicants are serious. It’s the latest in a series of rule changes that one petitioner — country singer Corb Lund — characterizes as exhausting. A cabinet order released late Wednesday afternoon upped the fee to $25,000 from $500. Heather Jenkins, press secretary to Justice Minister Mickey Amery, says the cost will be refunded if the applicant meets the required signature threshold and completes the reporting requirements.
Alberta Premier Danielle Smith has Canada’s national boxing regulator in her corner as she spars with Skate Canada over the province’s policy on trans athletes. Meanwhile, the federal government has endorsed the Skate Canada boycott, which it describes as a fight against discrimination in sports. Christopher Lindsay, executive director of Boxing Canada, said his organization would not be joining the national figure skating body in boycotting Alberta over provincial rules barring male-to-female trans athletes from competing in women’s divisions.
Alberta Premier Danielle Smith says Albertans may get to vote on whether immigrants in Alberta — who are there illegally — should be allowed to stay. “It’s not good for them, it’s not good for the taxpayers — it doesn’t allow for them to be able to pay for the things they’re going to need to support themselves and their families,” stated Smith to Rebel News’ Ezra Levant during an interview. Levant asked Smith about Conservative MP and Shadow Minister of Immigration Michelle Rempel Garner’s comments that she would support mass deportations.
Alberta is inching closer and closer to a vote on leaving Canada after a fresh citizen initiative petition was filed with Elections Alberta. Applicant Mitch Sylvestre believes now is the time for independence from Ottawa. His proposed question: Do you agree that the Province of Alberta should cease to be a part of Canada to become an independent state? “There is absolutely no question that this will benefit every Albertan, and I challenge anyone who is educated to come up with one good reason that we should stay in Canada, based on the situation that we’re in,” said Sylvestre.

British Columbia

The B.C. government will not move forward with changes to how the value of pipelines is calculated by B.C. Assessment — at least for now. It comes after public backlash from local governments, who say the proposed adjustments would have cost them millions in property taxes annually. Among those celebrating the news was the Thompson-Nicola Regional District (TNRD), which went public about the impact of the proposal following a board meeting in October 2025.
A B.C. MLA says the Speaker’s Office has confirmed that OneBC will no longer be recognized as an official party in the legislature. Kelowna-Lake Country-Coldstream MLA Tara Armstrong posted on X Tuesday night that she and Dallas Brodie, MLA for Vancouver-Quilchena, will sit as Independents in the legislature. CBC News has learned that Armstrong wrote to Speaker Raj Chouhan to inform him that she will not caucus with Brodie and that she understands the OneBC caucus will no longer be formally recognized in the legislature.
Conservatives say the B.C. government should follow the lead of other provinces and put U.S.-made liquor back on store shelves. Acting as the BC Conservative’s critic for public safety, MLA for West Kelowna-Peachland Macklin McCall tells 1130 NewsRadio that with no signs that the trade war will end, the booze is just sitting in warehouses. Government-managed liquor distributors in at least four provinces, including Manitoba, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, have resumed selling their inventory after pulling U.S.-made liquor from store shelves in February and March.
British Columbia’s premier says his government is working on a plan to offer loan guarantees for property owners and businesses in the Cowichan Aboriginal title area. In a year-end interview with CBC News, David Eby says the province is trying to ease the stress on homeowners and businesses in the area of Richmond, B.C., by supporting them to be “able to access borrowing, refinance their mortgages or mortgage a property if someone is buying new, or access financing as a business.”

Northwest Territories

Some N.W.T. MLAs have been weighing in on cabinet minister Lucy Kuptana’s decision to run for election as chair of the Inuvialuit Regional Corporation (IRC). Kuptana, MLA for Nunakput, was stripped of her cabinet portfolios by the premier on Tuesday, after informing him that she was running to lead the IRC. Kuptana was the Minister of Housing, N.W.T., and the Minister responsible for the status of women. Kuptana is in her first term as an MLA. Some of her colleagues say she’s done well in the role so far.

Yukon

The Yukon government said Monday it will not reopen the warming centre in the government administration building in downtown Whitehorse this winter. Last year, the government opened the former cafeteria space in the Jim Smith building to those in need from November to April. It offered coffee and snacks, harm reduction supplies, internet access, free bus tickets, and support for accessing social programs.

Nunavut

Members of the Nunavut Employees Union and the Nunavut government have ratified a new collective agreement. The deal includes salary increases of nine per cent for 2024 and three per cent for 2025, followed by a three per cent increase in October of 2026 and a 2.5 per cent increase in October of 2027. The Nunavut government employs around 4,000 people. The previous collective agreement expired on Sept. 30 of 2024. In addition to salary increases, the new agreement includes a two per cent increase in the Nunavut northern allowance for all communities on Jan. 1, 2026, and another three per cent increase after a year.