Minister of Energy and Natural Resources Tim Hodgson and Secretary of State for Defence Procurement Stephen Fuhr met with forest sector workers in Castlegar, British Columbia, to present Budget 2025 investments supporting Canada's forest industry, according to Natural Resources Canada.

The government will provide up to $700 million over two years in loan guarantees through the Business Development Bank of Canada to help forest companies maintain operations and access financing during a period of restructuring.

An additional $500 million will be allocated over three years, starting in 2026-27, to renew and expand Natural Resources Canada's programs focused on market diversification and new export initiatives.

Federal procurement policies will prioritize the use of Canadian materials such as mass timber and softwood lumber in construction, requiring government contractors to source domestically produced lumber.

During their visit, the ministers toured Kalesnikoff's mass timber and modular construction facilities, which produce prefabricated wall and floor systems using B.C. lumber. These components are being used in infrastructure projects across British Columbia funded by Natural Resources Canada's Green Construction Through Wood program.

Earlier this year, the federal government supported the construction of Kalesnikoff's 100,000-square-foot modular mass timber facility with a $3 million investment through the Investments in Forest Industry Transformation program.

The initiatives align with the federal Build Canada Homes program and the government's target of 500,000 housing starts annually over the next ten years, using mass timber products made from Canadian wood to increase domestic consumption and reduce export dependency.

Budget 2025 also outlines a total of $60 billion in savings and revenues over five years, enabling $1 trillion in planned investments across housing, infrastructure, defence and productivity through reduced operational spending and increased capital investment.