Federal government could save $10.7 billion by eliminating eight spending initiatives

During its tenure, the Trudeau government rejected any semblance of spending restraint and increased spending (and borrowing) at every turn. However, due to the rising cost of deficits and debt, coupled with pressures to increase spending in neglected areas such as defence, the next federal government—whoever that may be—may finally be forced to find savings and reduce spending.

But where to look?

The government should immediately review all spending on the basis of efficiency, value for money, and the appropriate role of government—similar to the spending review initiated by the federal Chrétien government during the 1990s. Here are some line items ripe for the cutting board.

Spending Area	Projected Spending in 2024/25
Regional Development Agencies	$1.5 billion
Government Supports for Journalism	$1.7 billion
Incentives for Zero-Emission Vehicles	$0.6 billion
2 Billion Trees	$0.3 billion
Canada Infrastructure Bank	$3.5 billion
Strategic Innovation Fund	$2.4 billion
Global Innovation Clusters	$0.2 billion
Green Municipal Fund	$0.5 billion
Total Potential Savings	$10.7 billion

Regional Development Agencies: The federal government operates seven Regional Development Agencies (RDAs), which deliver financial assistance (a.k.a. corporate welfare) to businesses. Despite spending an estimated $1.5 billion in federal taxpayer money in 2024/25, the RDAs do not provide any widespread economic benefits to Canadians. Instead, they simply redistribute those dollars to private firms and pick winners and losers in the free market. When reporting on the results, the government offers vague platitudes such as “businesses are growing” and “communities are developing economically.”

Government Money for Journalism: In 2024/25 the federal government spent an estimated $1.7 billion to support Canadian journalism including the operating costs (e.g. wages) of newspapers and broadcast outlets such as the CBC. Despite these efforts, and the considerable price tag, hundreds of news organizations have closed since 2020 and layoffs have persisted—largely due to the disruptive effects of the Internet. Simply put, the traditional media sector is in decline, and the government’s costly attempts to reverse this trend have been ineffective.

Federal Support for Electric Vehicle Purchases: As part of its push to reduce emissions, the federal government will spend an estimated $587.6 million to subsidize electric vehicle (EV) purchases in 2024/25. This spending is inefficient and wasteful. EV incentives are expensive—costing a minimum of $177 per tonne of greenhouse gas (GHG) emissions, whereas the federal carbon tax in 2024 was much cheaper at $80 per tonne of GHG emissions.

The 2 Billion Trees (2BT) Program: Ottawa has earmarked $3.2 billion for the program from 2021 to 2031, with expenses in 2024-25 alone estimated at $340 million. While laudable in theory, the program has been poorly executed. In its first two years, the federal government spent roughly 15.0 per cent of the total budget to plant merely 2.3 per cent of the two billion trees. In fact, the 2BT program has used trees planted under a different program to artificially boost its numbers.

Canada Infrastructure Bank (CIB): Established in 2017, the CIB is a federal Crown corporation tasked with investing and attracting investment in Canadian infrastructure projects. Over its more than seven-year lifespan, the CIB has approved approximately $13.2 billion in investments across 76 projects (as of July 2024). In 2024/25, federal CIB funding will equal $3.5 billion. Though multiple problems plague the CIB, chief among them is its inefficiency in advancing projects. As of July 2024, only two CIB-funded projects had been completed. This lack of progress was a chief concern in a previous House of Commons committee report that made the sole recommendation to abolish the CIB.

Strategic Innovation Fund (SIF): With federal grants and contributions, the SIF funds projects based on their purported potential to deliver innovation and economic benefits for Canadians. While Canada certainly suffers from a lack of innovation, this spending (to the tune of $2.4 billion in 2024/25) simply shifts jobs and investment dollars away from other firms and industries—with no net benefit for the overall economy. Similarly, increased government spending on innovation may simply crowd out private-sector investment, leading to no net increase in innovation investment.

Global Innovation Clusters (GIC): The federal government launched the GIC program, like the SIF, to address the lack of innovation in Canada. The government expects to disperse $202.3 million through the GIC in 2024/25 alone, targeting the five “clusters” of business activity the government chose in 2018. But again, because the clusters represent specific industries and technologies (e.g. artificial intelligence, marine technologies, manufacturing), the federal government is incentivizing firms to spend time and resources modifying their businesses to secure grant rather than focusing on the development of new/improved goods and services.

Green Municipal Fund (GMF): The GMF spends federal tax dollars on municipal projects that purportedly accelerate the transition to net-zero greenhouse gas (GHG) emissions. In 2024/25, the federal government will contribute $530 million to the fund. While the fund maintains emissions-reduction targets for projects, several projects approved for funding will not reduce GHG emissions in any measurable way—for example, “climate-friendly” home tours and funding for climate advocacy groups in Ottawa. In other words, the GMF is spending taxpayer dollars on projects that make no apparent progress towards the GMF’s stated goal.

In total, these eight spending initiatives add up to approximately $10.7 billion in potential savings for the 2024-25 fiscal year alone. And remember, these are just the low-hanging fruit. The next federal government can find further savings through a more comprehensive review of all spending.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

Up Next

Given changes to U.S. policy under Trump, Canada needs to rethink its environmental policies

Don't Miss

Three face federal charges for “domestic terrorism” after targeting Teslas

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

In Britain the “Thought Crime” Is Real

Crime / 6 hours ago

Veteran RCMP Investigator Warns of Coordinated Hybrid Warfare Targeting Canada

Daily Caller / 19 hours ago

US Energy Secretary Chris Wright Has To Clean Up Joe Biden’s Mess and refill the Strategic Petroleum Reserve

Business

Poll: Democrats want Elon Musk jailed for trying to fix Washington

Published on May 11, 2025

Todayville

MxM News

Quick Hit:

A shocking new poll reveals that a staggering 71% of likely Democratic voters support imprisoning Elon Musk for his brief service in the Trump administration’s Department of Government Efficiency (DOGE). The survey, conducted by The Heartland Institute and Rasmussen Reports, underscores an alarming shift in progressive politics: jailing political opponents for attempting to rein in bureaucratic waste. As Justin Haskins writes in his May 9 Townhall op-ed, this poll is not just about Musk—it’s about the dangerous normalization of authoritarianism among America’s political left.

Key Details:

71% of likely Democratic voters support jailing Musk for his role in eliminating government waste via DOGE.
80% of ideological liberals, across parties, say they would imprison Musk for his public service.
Nearly 70% of Democrats support banning Musk from ever serving in government again—an unconstitutional measure.

Diving Deeper:

In his recent Townhall column, Justin Haskins warns that Elon Musk’s fall from liberal darling to “Public Enemy No. 1 for the modern left” stems from a single transgression: daring to challenge the D.C. establishment. Haskins opens by recognizing Musk’s past achievements—electric vehicles, space exploration, and defending free speech. But after briefly working in the Trump administration’s Department of Government Efficiency (DOGE)—an initiative aimed at cutting federal waste—Musk became a target of left-wing ire.

According to the Heartland Institute/Rasmussen poll, “Seven in ten likely Democratic voters want to imprison Musk for trying to make government more efficient.” Haskins adds, “This isn’t satire. This is the modern Democratic Party, where liberalism has evolved into authoritarianism dressed in the clothes of compassion and equity.”

The numbers become even more disturbing among self-identified liberals. A staggering 80% of ideological liberals said they’d support jailing Musk for participating in DOGE. Additionally, nearly 70% of Democrats back a proposal to ban him from ever working in government again—a position that clearly violates constitutional protections.

Musk’s unpopularity among Democrats has grown since his acquisition of X (formerly Twitter) and his commitment to restoring banned voices. Once celebrated as a climate champion, Musk is now demonized by the very groups that once hailed his green energy innovations. “He was supposed to walk in lockstep against conservatives at all times,” Haskins notes. “When he chose a different path… he committed a sin that some on the radical left simply cannot forgive.”

More importantly, the poll reflects a dangerous national trend: criminalizing political dissent. Haskins writes, “When nearly three-fourths of Democratic voters support jailing someone for participating in an effort to streamline federal agencies, we’ve crossed a dangerous line.” He continues, “This is the stuff of banana republics, not constitutional republics.”

The column concludes with a chilling reminder that the targeting of Elon Musk is not an isolated incident. “If they’re willing to jail Elon Musk for doing his job, what do you think they’ll do to the rest of us?” Haskins asks. The poll results reveal a left-wing movement increasingly comfortable using state power to punish those who refuse to conform.

Business

LEGO to invest $366 million on major U.S. expansion

Published on May 10, 2025

Todayville

MxM News

Quick Hit:

The LEGO Group is expanding its U.S. footprint with a $366 million investment to build a 2-million-square-foot warehouse in Virginia. The move will create 305 new jobs and deepen the company’s commitment to the United States.

Key Details:

The new warehouse and distribution center will be built in Prince George County, complementing LEGO’s upcoming factory in neighboring Chesterfield County that’s set to open in 2027.
Virginia secured the project through a $2.53 million Commonwealth Opportunity Fund grant, with additional support from state programs including the Virginia Jobs Investment Program and the Port of Virginia’s economic development incentives.
LEGO’s Chief Operations Officer Carsten Rasmussen said the center will “bring greater flexibility” to the company’s North American supply chain and reduce both customer wait times and environmental impact.

Diving

LEGO is expanding in Virginia! This new $366M investment in Prince George County creates 305 new jobs, strengthening our partnership and Virginia’s status as the top state for business. Virginia is where global companies and iconic brands like @LEGO_group can thrive, grow, and… pic.twitter.com/6rzydVIlRZ

— Glenn Youngkin (@GlennYoungkin) May 8, 2025

Deeper:

The LEGO Group will invest $366 million to build a 2 million-square-foot warehouse and distribution center in Prince George County, Virginia, a move expected to create 305 new jobs, according to a Thursday announcement by Governor Glenn Youngkin.

The project marks another milestone in LEGO’s ongoing U.S. expansion, following the 2022 announcement of its Chesterfield County factory currently under construction. The company’s operations in Virginia are projected to create more than 2,000 jobs total when both sites are fully up and running.

“The LEGO Group is not just a household name, it’s a symbol of creativity, innovation, and quality that resonates globally,” said Governor Youngkin. “Three years after choosing Virginia to establish its U.S. manufacturing plant, the LEGO Group’s decision to expand into Prince George County is an exciting new chapter in this partnership.”

LEGO’s global Chief Operations Officer, Carsten Rasmussen, said the regional distribution center “will shorten our supply chain in the region–reducing lead times for our customers as well as our environmental impact.” He praised the continued partnership with the Commonwealth.

State economic officials credited Virginia’s workforce and infrastructure for helping land the deal. “This investment brings high-quality jobs to Prince George County and reflects our broader commitment to building healthy, vibrant communities,” said Secretary of Commerce and Trade Juan Pablo Segura.

Virginia lawmakers representing the area praised the announcement. State Senator Lashrecse Aird said the investment means “new opportunities for families and a stronger foundation for our community.” Delegate Carrie Coyner echoed that sentiment, calling it “a testament to the kind of community we’ve built.”