Québec Budget 2026-2027: Record Investments In Infrastructure

On March 18, 2026, the Government of Québec tabled its 2026-2027 budget, titled "A Responsible Budget with Targeted Measures for Quebecers."¹ This budget comes at a time of persistent economic uncertainty, largely driven by evolving US trade policy and the ongoing review of the Canada–United States–Mexico Agreement (CUSMA)². Against this backdrop, the Government of Québec made the strategic decision to place public infrastructure at the core of its economic response, viewing infrastructure spending not as a simple expense, but as a powerful lever for resilience and growth.

The 2026-2027 budget provides for CA$5.2 billion in infrastructure investments over six years, with the explicit objective of accelerating economic benefits and supporting activity more quickly in the face of ambient uncertainty³. As emphasized in the Budget Plan, "public infrastructure investments are an important lever available to the government to help not only increase Québec’s economic potential, but also ensure quality public services."⁴

This vision underpins the government’s broader approach: stimulating short-term economic activity by supporting employment and demand for Québec-based suppliers, while simultaneously modernizing public assets. In doing so, the government aims to enhance productivity, reduce business costs and strengthen Québec’s attractiveness for private investment⁵.

An unprecedented commitment to Québec's infrastructure

The 2026-2036 Québec Infrastructure Plan (PQI), updated as part of the 2026-2027 budget, provides for CA$167 billion in investments over 10 years⁶. This ambitious program is designed to support long-term economic growth while modernizing the province's core public assets. Beyond its economic objectives, the PQI will enable the government to continue maintaining and enhancing the infrastructure essential to delivering high-quality public services. This includes the construction and renovation of hospitals and seniors’ residences, the upgrading of schools and addition of classrooms, the development of major public transit systems and the ongoing digital transformation of public institutions⁷.

The PQI reflects a balanced approach between preserving existing infrastructure and developing new strategic capacity. Investments are distributed across a broad range of sectors, addressing both immediate needs and long-term priorities. The following breakdown highlights the principal areas targeted⁸:

• CA$35.734 billion – Road network: Maintenance of road assets, highway upgrades, and the reconstruction of bridges and interchanges, and modernization of transportation corridors across the province. Asset maintenance accounts for approximately 88% of investments in this sector.
• CA$24.731 billion – Health and social services: Construction, expansion and renovation of healthcare facilities, including hospitals and seniors' residences, as well as the replacement of medical equipment. Investments are split between asset maintenance (54%) and improvements (46%).
• CA$23.549 billion – Education: School repairs, classroom additions, construction of new facilities and the maintenance or replacement of existing assets.
• CA$12.843 billion – Public transit: Development of major transit networks, electrification initiatives and refurbishment of existing systems. Approximately 72% of funding is dedicated to system improvements.
• CA$9.243 billion – Higher education: Maintenance and expansion of universities and colleges to address capacity needs.
• CA$8.949 billion – Information resources: Modernization of government IT systems, digital transformation and enhanced public service delivery.
• CA$7.297 billion – Municipal infrastructure: Upgrades to drinking water and wastewater systems, water and sewer networks, as well as other municipal assets such as parks.
• CA$6.3 billion – Marine, air, rail and other transportation:  Investments in ferries, wharves, airports, railways and local roads, including support provided through the Local Roadway Assistance Program.
• CA$5.831 billion – Government administration: Construction, renovation and modernization of public buildings, including offices, courthouses, detention facilities and police stations (Sûreté du Québec).
• CA$3.488 billion – Social and community housing: Construction and renovation of rental housing buildings to improve access to affordable housing, particularly for vulnerable populations.
• CA$2.724 billion – Culture: Development, expansion and renovation of cultural infrastructure such as museums, libraries and performance venues.
• Overall, the projects included in the PQI are intended to sustain economic growth, preserve public assets and respond to the evolving needs of Québec’s population⁹. As emphasized in the Budget Plan, these investments will contribute to “the construction of quality infrastructure and the creation of jobs and wealth in all regions of Québec.”¹⁰

Advance infrastructure projects: Planning, execution and monitoring

The PQI is supported by a strengthened governance framework, anchored in the Québec Public Infrastructure Strategy launched in 2024. This strategy is structured around four key pillars: optimized planning, a more competitive business environment, a more agile public administration and enhanced oversight of major project performance¹¹.

Complementing this framework, optimization measures approved by the Treasury Board in November 2025 are expected to generate savings of approximately 15%. These measures focus on rationalizing needs, standardizing requirements and consolidating similar projects to improve efficiency and cost control. In parallel, the Directive sur la gestion des projets majeurs d’infrastructure publique [directive on the management of major public infrastructure projects], in force since May 1, 2025, streamlines the authorization process and adjusts applicability thresholds, helping to accelerate project delivery¹².

The Strategy also underscores the importance of private sector participation and aims to foster a more competitive and collaborative environment, particularly through partnership-based approaches¹³. In this context, Bill 5 proposes to simplify and expedite the authorization process for projects deemed to be of priority or national importance¹⁴. For further details, please refer to our recent article on the proposed legislation to accelerate authorizations for major projects.

Conclusion

The 2026–2027 Budget assigns a central strategic role to infrastructure in strengthening Québec’s economic resilience. With CA$167 billion in planned investments over the next decade, the government has set an ambitious course¹⁵. The key challenge now lies in translating this vision into tangible outcomes, with a sustained focus on execution efficiency, cost discipline and long-term impact.

Footnotes

1. Ministry of Finance, Government of Québec, Budget 2026 - 2027: A Responsible Budget with Targeted Measures for Quebecers – Budget Plan.

2. Ibid, p. A.21.

3. Supra note 1, B.5 and F.69.

4. Ibid, p. A.31.

5. Ibid, p. B.5.

6. Ibid, p. F.69.

7. Supra note 1, p. F. 71.

8. Ibid.

9. Ibid, p. 12.

10. Ibid, p. 5 of the PDF.

11. Supra note 10, p. A.38.

12. Ibid, p. A.9 and A.10.

13. Ibid, p. A.38.

14. Supra note 1, pp. B.17 and B.18.

15. Ibid note 1, p. A.6.

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