Standing strong for B.C.: Budget prepares to defend British Columbians
Press Release
March 4, 2025
VICTORIA – The provincial government has released Budget 2025: Standing Strong for B.C., a measured plan to protect jobs and the public services people rely on, while preparing British Columbia’s economy to withstand the unpredictable impacts of unjustified tariffs.
“With uncertainty on the horizon, it is prudent to protect the essentials and prepare for what comes next by investing in our greatest resource, the people of British Columbia,” said Brenda Bailey, Minister of Finance. “While our economy is built to withstand the threat of U.S. President Donald Trump’s tariffs relatively better than most other provinces, the impact would still be significant. Our budget prepares us to carefully navigate these uncharted waters so we can put people first and support businesses as we build a stronger, more self-sufficient future.”
Budget 2025 manages B.C.’s finances and invests in critical public services to meet growing demand. It provides $9.9 billion more in operating funding over three years, including $7.7 billion in new funding for health care, education and social services. The budget also includes $4 billion in annual contingencies to address unpredictable costs, including a new collective bargaining mandate, pressures on critical services and for emerging needs, such as potential tariff response measures.
The budget provides $4.2 billion to respond to growing demand for health-care services, improve access to primary care, continue hiring health-care workers, reduce wait times at emergency departments and hospitals, and open and operate new and renovated hospitals and facilities. It also provides funding to support addictions treatment and recovery programs.
To address health-care needs throughout the province, $15.5 billion in capital funding is provided over the fiscal plan to help build and upgrade hospitals, long-term care facilities and cancer centres.
Budget 2025 provides $370 million over three years to support students in the K-12 education system, including hiring additional teachers, special-education teachers, teacher psychologists and counsellors. The budget also invests $4.6 billion over the fiscal plan in capital funding to build and upgrade schools.
Funding is increasing for services for children and youth with support needs, children and youth in care and adults with developmental disabilities.
“In times of uncertainty, we will be there for British Columbians. We are continuing to invest in the services people rely on to take care of their families, get the care they need, when they need it, and provide a good future for everyone across the province,” Bailey said. “Our government is focused on building an economy that creates the wealth that is needed to deliver more jobs with bigger paycheques and protect our public services in the face of the threat of unjustified tariffs.”
Growing a stronger and more diverse economy will help protect people from instability outside B.C.’s borders, with investments that will bring good-paying jobs to the province as part of sustainable industries.
Budget 2025 invests $30 million over three years to support high-quality jobs through the Integrated Marketplace Initiative’s work to accelerate innovation in B.C., and boosts tax credits for the province’s film sector and home-grown interactive digital media and video game industry.
It includes funding of $95 million in critical highway and bridge maintenance over three years to help people and goods move safely across the province, with another $47 million over the fiscal plan to support BC Transit networks outside of the Lower Mainland.
Capital funding of $15.9 billion over three years will support transit, infrastructure and highway improvements to connect communities throughout the province.
Total capital investments of $59.9 billion over the fiscal plan are anticipated to support 180,000 good-paying direct and indirect jobs over three years.
People continue to deal with the challenge of daily costs, especially when it comes to finding a home they can afford. Budget 2025 commits an additional $318 million over three years to BC Builds as part of the Province’s goal of delivering thousands more rental homes for middle-income people.
B.C. remains focused on making sure people, not speculators, can find affordable housing by increasing the Speculation and Vacancy Tax to 3% for foreign owners and untaxed worldwide owners, and 1% for Canadian citizens and permanent residents.
The number of lower-income working families receiving help with their monthly rent payment will nearly double as part of $375 million in additional funding for rental support programs over three years.
With this increase, the average supplement families receive under the Rental Assistance Program will rise from $400 to $700 per month. An additional 1,600 seniors will receive rental support through the Shelter Aid for Elderly Renters (SAFER) program, with average supplements growing by 30%. This is the second increase to funding for SAFER recipients in the past year.
Stronger-than-expected returns on investments means ICBC can provide another $110 rebate this year to help personal and commercial drivers with costs amid an uncertain economic climate.
The Province is investing $325 million over three years to support safer communities.
This includes $235 million in justice and public safety programs for people to get timely access to justice, a new program to fight vandalism and other property crime, increased police funding and more police officer training seats.
Budget 2025 provides additional funding to expand HEART and HEARTH programs to help more people living outdoors access housing and better support services so the Province can work with communities to help people move indoors and close down encampments.
“We can’t leave our future to the whims of unpredictable forces beyond our borders,” Bailey said. “This is our opportunity to stand up for B.C. families, workers and communities to build a stable and sustainable economy for years to come.”
Budget 2025 presents declining deficits from $10.9 billion in 2025-26 to $10.2 billion in 2026-27 and $9.9 billion in 2027-28.
Learn More:
Read the 2025 Budget and Fiscal Plan: https://www.bcbudget.gov.bc.ca/
Six backgrounders follow.
Contact:
Ministry of Finance
Media Relations
236 969-0744
BACKGROUNDER 1
Defending B.C. against impact of U.S. tariffs
Budget 2025 was created during uncertain economic times as British Columbia faces tariff threats from the United States.
The uncertainty makes it difficult for the Province to predict the precise impact of tariffs, as well as what measures may be required to help people and businesses. The Province remains ready to respond to any scenario and defend British Columbians from these threats, protect jobs and the services people rely on.
B.C.’s diversified trading relationships have reduced reliance on the U.S. as a trading partner. The share of B.C.’s goods exports to the U.S. dropped to 52.8% in 2024, compared to 65.8% in 2000. At the same time, B.C. has expanded its trade relationships with key Asian markets, including China and South Korea.
In comparison, approximately 88% of Alberta’s goods exports and an average of 76.1% of Ontario and Quebec’s goods exports went to the U.S. in 2024. This places B.C. in a relatively better position than other provinces when it comes to mitigating the impacts of U.S. tariffs. However, the impact would still be significant.
Some sectors are more reliant on the U.S. for exports. For example, in 2024, B.C. exported all its natural gas and electricity and 74.8% of its softwood lumber to the U.S.
For goods coming into B.C., U.S. imports make up 34.5% of total incoming trade, including machinery and equipment, agriculture and food, as well as energy products.
To be best prepared, the Ministry of Finance has presented a range of possible impacts, based on information that continues to evolve.
An initial assessment released on Jan. 16, 2025, assumed a broad-based U.S. tariff of 25% on all goods from Canada and Mexico, and full retaliation of 25% in Canadian counter-tariffs on all goods from the United States.
The ministry has updated its assessment based on the Budget 2025 economic and fiscal forecast and more recent tariff information up to Feb. 4, 2025. This new scenario assumes 10% tariffs on Canadian energy products and a 25% tariff on all other goods from Canada and Mexico, along with partial retaliation from Canada, with 25% counter tariffs on less than half the goods imported from the U.S.
This scenario also assumes the federal government would provide supports as needed to households and businesses, as it has indicated, and that the Bank of Canada would lower interest rates.
This point-in-time scenario projects the following potential impacts of U.S. tariffs on B.C.’s economy and finances:
- $43 billion cumulative decrease to real GDP by 2029;
- 45,000 fewer jobs by 2029;
- unemployment rate increase to 6.4% in 2025, and 6.7% in 2026;
- $3.2 billion to $5 billion annual decline in corporate profits; and
- up to $1.4 billion annual loss in revenue.
The results of the Budget 2025 scenario are less severe than the Jan. 16, 2025, assessment, in part because tariff assumptions are lower and because the budget base case incorporates other economic changes since the fall 2024 fiscal update. However, combined these changes could result in provincial revenue losses of $1.7 billion to $3.4 billion annually if tariffs come into force. This is more than the budgets for most B.C. ministries, except for health, education and social service ministries.
Tariff impacts could be more significant depending on what policies are implemented, if federal support is less than assumed, if Canada’s retaliation escalates and if U.S. tariffs are stacked, resulting in even higher tariffs.
B.C. remains ready to respond to any scenario with a three-part response to U.S. tariffs by:
- strengthening B.C.’s economy, including by expediting projects and supporting industry and workers;
- diversifying trade markets for products so B.C. is less reliant on U.S. markets and customers; and
- responding to U.S. tariffs with tough counter actions and outreach to American decision-makers.
As part of the response, the Province is streamlining the reviewing and permitting of major natural-resource projects that are ready to move forward. These projects are estimated to be worth $20 billion and to support approximately 8,000 jobs.
The Province is bringing together a broad coalition of allies to strengthen B.C.’s economy, diversify markets and respond as Team Canada, including a trade and economic security task force that brings together business, labour and Indigenous leadership.
A new premier’s task force on agriculture and food economy is working on both short- and long-term solutions to help farmers find new markets in the face of tariff uncertainty, and helping British Columbians get reliable access to affordable and nutritious food.
B.C. is taking a whole-of-government approach to defend B.C.’s workers, businesses, economy and to protect the services people rely on.
Contact:
Ministry of Finance
Media Relations
236 969-0744
BACKGROUNDER 2
Strengthening health care and services people rely on
In an uncertain economic environment, it’s more important than ever to protect the services people rely on. Budget 2025 invests $7.7 billion over three years to support health, education and social services.
Health care
Budget 2025 provides $4.2 billion over three years to increase capacity in the health-care system, improve patient outcomes and support a growing demand for services. This includes $443 million to support the primary care strategy and more than $870 million toward the opening and operation of new facilities, including the new St. Paul’s Hospital in Vancouver, the Royal Columbian Hospital redevelopment in New Westminster, the Mills Memorial Hospital replacement in Terrace and Royal Inland Hospital enhancements in Kamloops.
As B.C.’s population grows and ages, additional facilities are needed to support the increasing need for health care. Budget 2025 provides $15.5 billion over three years in capital investments for new and upgraded acute care, long-term care and cancer care facilities throughout the province. Major projects include the construction of a new acute care tower at the University Hospital of Northern BC; the new Surrey hospital and BC Cancer Centre and new facilities at Surrey Memorial; new long-term care facilities that are starting construction in Chilliwack, Kelowna and Squamish; and cancer centres in Nanaimo and Kamloops.
Mental health and addictions
Government has made significant investments to strengthen mental-health and addiction services throughout B.C. Budget 2025 includes $500 million in new funding over three years for addictions treatment and recovery programs that are underway. These include Road to Recovery, Foundry, secure care, supports for children and youth and Indigenous-led treatment, recovery and aftercare services.
K-12 education
Budget 2025 provides $370 million over three years to help give children and youth the supportive and inclusive learning environment they need. This includes hiring more teachers and supporting the growing number of children with special needs with funding for special education teachers, teacher psychologists and counsellors through the Classroom Enhancement Fund. Budget 2025 also provides $17 million for First Nations reciprocal tuition for students attending First Nations schools.
Capital investments of $4.6 billion over three years will go toward building, renovating and seismically upgrading schools. Major projects include $392 million in prefabricated school projects that will create 6,485 new seats across 16 school districts; $203 million for the new 1,900-seat Smith Secondary school in Langley; and $151 million for the new 630-seat Olympic Village elementary school in Vancouver.
First Nations language preservation and revitalization
Budget 2025 invests $45 million in new funding over three years for the First Peoples’ Cultural Council, nearly doubling the Province’s past annual investments for First Nation led programming. Of this, $36 million will go toward critical language preservation and revitalization to meet the growing demand for language instruction, as well as support learners and jobs for expert speakers, particularly Elders and First Nations women.
Post-secondary education and skills training
As part of previous budgets, B.C. has committed more than $700 million over three years through the StrongerBC: Future Ready Action Plan to improve access to post-secondary education to prepare people for the jobs of tomorrow, while helping close the skills gaps that employers are facing.
Budget 2025 supports continued investment in B.C.’s Health Human Resources Strategy. In the first two years, investments have helped fund hundreds of training seats, including 40 new undergraduate medical seats, 162 new residency spots and 65 new nurse practitioner training seats. The remaining funding will continue to train more health-care workers to serve the needs of B.C. families.
Budget 2025 includes $4.7 billion in capital funding over the fiscal plan for post-secondary institutions. Major projects include $315 million for the construction of the Centre for Clean Energy and Automotive Innovation at Vancouver Community College; $108 million for the West Shore Learning Centre Campus for Royal Roads University in Langford; $57 million for the Centre for Food, Wine and Tourism at Okanagan College in Kelowna; and $34 million for the interim space for the new medical school at Simon Fraser University in Surrey.
Children and youth in care and alternative care
Budget 2025 provides $821 million over three years to support children in government care or alternative care arrangements, such as with a family member or someone with an established relationship or cultural connection. These programs include foster care and specialized homes, independent living programs, and similar care programs supported by Indigenous Child and Family Service Agencies.
Children and youth with support needs
Budget 2025 provides an additional $172 million over three years for children and youth with an autism diagnosis and families accessing medical benefits for children with severe disability or complex health-care needs. New funding will provide supports to 2,700 more children, for an estimated total of nearly 30,400 children and youth in 2025-26.
Income and disability supports, and supplementary assistance
To support increased demand for income, disability and supplementary assistance, the budget provides $1.6 billion more over three years. Approximately 253,000 people receive assistance, including the financial, transportation and crisis supplements, as well as counselling and health supports.
Community Living BC
Budget 2025 provides an additional $380 million over three years to Community Living BC to meet growing demands. Community Living BC supports more than 29,000 adults with developmental disabilities.
Contact:
Ministry of Finance
Media Relations
236 969-0744
BACKGROUNDER 3
A strong, diversified economy for B.C.
Budget 2025 is a made-in-B.C. plan to support growth and defend good jobs for people as Canada faces the threat of unjustified U.S. tariffs.
B.C. has built a strong economic foundation despite global challenges, attracting record investments and supporting industry to grow and innovate.
Government continues to make progress on previous investments to streamline permitting across the natural-resource sector so high-priority projects can be built faster. This includes fast-tracking 18 major critical mineral and energy projects worth approximately $20 billion.
Budget 2025 moves B.C. forward in its goal to grow a more self-sufficient and diverse economy that will stand strong in the face of whatever comes its way, with $172 million in new investments over the fiscal plan to keep people and goods moving and new tax measures to support economic growth.
Encouraging innovation and investment to create good jobs
Building on the success of a three-year pilot, Budget 2025 invests $30 million over three years in the Integrated Marketplace Initiative to connect tech companies with commercial partners to test their products and services in real-world environments.
The initiative helps tech companies scale up, expand into new markets and create more high-quality jobs and opportunities here at home. The projects are located at sites crucial to B.C.’s diversified economy, including ports and airports.
B.C. is a vibrant interactive technology hub with global company offices that are at the forefront of video games and virtual reality. To boost the success of this sector, Budget 2025 increases the interactive digital media tax credit from 17.5% to 25% and makes the credit permanent. This will help companies attract the talent they need to grow their teams and compete for more contracts, strengthening a robust and sustainable industry.
Budget 2025 also encourages investment in B.C.’s small businesses, with an increase to the investment limit for individuals through its small business venture capital tax credit and a temporary $15-million increase to the program’s budget for 2025-27.
Supporting Canadian content and made-in-B.C. productions
Budget 2025 increases incentives for B.C.’s thriving film sector, ensuring that good-paying film and TV industry jobs stay in the province. Film Incentive BC credits for Canadian-content productions increase from 35% to 40%, retroactive to Jan. 1, 2025, to support Canadian content. To support international projects made in B.C., the production services tax credit is increasing from 28% to 36%. Projects claiming the production services tax credit with B.C. production costs greater than $200 million could get extra support, with a new 2% major production tax credit.
Budget 2025 also amends the rules for animated productions with a bricks-and-mortar presence in a regional or distant location to be able to claim regional or distant location credits if they qualify through the Film Incentive BC tax credit or the production services tax credit, subject to additional eligibility rules.
Keeping goods and people moving through transportation and transit upgrades
Reliable transportation infrastructure is critical to keeping people connected, strengthening supply chains and ensuring B.C. products get to market efficiently.
Budget 2025 invests $142 million over three years to maintain highways and bridges and to support critical transit services to ensure the safe and efficient movement of goods and people. This includes:
- $95 million in additional funding for critical highway and bridge maintenance throughout the province; and
- $47 million toward BC Transit to ensure reliable bus and handyDART services in 130 communities outside the Lower Mainland.
Budget 2025 also includes $15.9 billion in capital funding over the next three years to improve transportation networks throughout B.C.
Examples of approved projects include:
- $6 billion for the Surrey Langley SkyTrain;
- $5 billion for two phases of the Fraser Valley Highway 1 corridor improvement program;
- $4.2 billion for an eight-laned immersed tube tunnel to replace the George Massey Tunnel on Highway 99;
- $3 billion for the Broadway subway project;
- $1.2 billion for upgrades to several sections of Highway 1 between Kamloops and Golden; and
- $538 million for two projects to restore access to critical road infrastructure in the Cariboo region damaged by landslides.
Contact:
Ministry of Finance
Media Relations
236 969-0744
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