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Federal government could save $10.7 billion this fiscal year by eliminating eight ineffective spending programs

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From the Fraser Institute

By Jake Fuss and Grady Munro

The federal government could save up to $10.7 billion this fiscal year by ending eight ineffective spending programs, finds a new report published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Canada’s federal finances have deteriorated markedly over the last decade, largely due to a rapid run up in spending, deficits and debt,” said Jake Fuss, director of fiscal studies at the Fraser Institute.

“As previous governments have done before, a comprehensive line-by-line review of Ottawa’s spending is required to identify those programs or initiatives that are not fulfilling their purpose, or are not providing good value for tax dollars.”

The study, Identifying Potential Savings from Specific Reductions to Federal Government Spending, highlights eight federal programs where government spending
does not appear to be accomplishing its stated goals, or where government funding is unnecessary:

– $1.5 billion — Regional Development Agencies
– $1.7 billion — Federal support for journalism
– $587.6 million — Federal support for electric vehicle production and purchases
– $340.0 million — Two Billion Trees program
– $3.5 billion — Canada Infrastructure Bank
– $2.4 billion — Strategic Innovation Fund
– $202.3 million — Global Innovation Clusters
– $530.0 million — Green Municipal Fund

Critically, eliminating these eight programs could reduce federal government spending by $10.7 billion in 2024-25: “Though just a starting point, a savings of $10.7 billion would meaningfully improve federal finances and help Ottawa put the country’s finances back on a stable footing,” Fuss said.

This study is part of a larger series of collected essays on federal policy reforms, Federal Blueprint for Prosperity, edited by Fraser Institute Senior Fellows Jock Finlayson and Lawrence Schembri.

The essay series, also released today, details federal policy reforms in health care, environmental and energy regulations, tax policy, immigration, housing, trade, etc. to increase prosperity for Canadians and improve living standards.

To learn more and to read the entire collected essay series, visit www.fraserinstitute.org.

 

Identifying Potential Savings from Specific Reductions in Federal Government Spending

  • A marked deterioration in the state of Canada’s finances, driven largely by rapidly increasing spending, has created a need to review federal government spending to identify programs that are inefficient and/or ineffective. This study highlights eight spending areas that have easily identifiable problems, and should be a starting point for a more comprehensive review.
  • The eight spending areas identified are: Regional Development Agencies, Government Supports for Journalism, Federal Support for Electric Vehicle Production and Purchases, the 2 Billion Trees Program, the Canada Infrastructure Bank, the Strategic Innovation Fund, the Global Innovation Clusters, and the Green Municipal Fund.
  • These programs represent instances where government spending does not appear to be accomplishing the stated goals, and where government involvement is questionable.
  • For instance, despite research suggesting business subsidies do little to promote widespread economic growth, the seven regional development agencies report vague objectives and results that make it difficult for government officials or Parliamentarians to assess the efficacy of the spending.
  • Since the Canada Infrastructure Bank was first established in 2017, it has approved up to $13.2 billion in investments across 76 projects, but only two projects have been completed. These projects represent just $93.2 million (or 0.71 percent) of the total approved investments.
  • The federal government could save $10.7 billion in 2024–25 alone if it eliminated spending in these eight areas. This amount would be impactful in improving the state of Canada’s finances, and more savings could be achieved through a comprehensive review of all spending.

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Automotive

Auto giant shuts down foreign plants as Trump moves to protect U.S. industry

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MXM logo  MxM News

Quick Hit:

Stellantis is pausing vehicle production at two North American facilities—one in Canada and another in Mexico—following President Donald Trump’s announcement of 25% tariffs on foreign-made cars. The move marks one of the first corporate responses to the administration’s push to bring back American manufacturing.

Key Details:

  • In an email to workers Thursday, Stellantis North America chief Antonio Filosa directly tied the production pause to the new tariffs, writing that the company is “continuing to assess the medium- and long-term effects” but is “temporarily pausing production” at select assembly plants outside the U.S.

  • Production at the Windsor Assembly Plant in Ontario will be paused for two weeks, while the Toluca Assembly Plant in Mexico will be offline for the entire month of April.

  • These plants produce the Chrysler Pacifica minivan, the new Dodge Charger Daytona EV, the Jeep Compass SUV, and the Jeep Wagoneer S EV.

Diving Deeper:

On Wednesday afternoon in the White House Rose Garden, President Trump announced sweeping new tariffs aimed at revitalizing America’s auto manufacturing industry. The 25% tariffs on all imported cars are part of a broader “reciprocal tariffs” strategy, which Trump described as ending decades of globalist trade policies that hollowed out U.S. industry.

Just a day later, Stellantis became the first major automaker to act on the new policy, halting production at two of its international plants. According to an internal email obtained by CNBC, Stellantis North American COO Antonio Filosa said the company is “taking immediate actions” to respond to the tariff policy while continuing to evaluate the broader impact.

“These actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations,” Filosa wrote.

The Windsor, Ontario plant, which builds the Chrysler Pacifica and the newly introduced Dodge Charger Daytona EV, will shut down for two weeks. The Toluca facility in Mexico, responsible for the Jeep Compass and Jeep Wagoneer S EV, will suspend operations for the entire month of April.

The move comes as Stellantis continues to face scrutiny for its reliance on low-wage labor in foreign markets. As reported by Breitbart News, the company has spent years shifting production and engineering jobs to countries like Brazil, India, Morocco, and Mexico—often at the expense of American workers. Last year alone, Stellantis cut around 400 U.S.-based engineering positions while ramping up operations overseas.

Meanwhile, General Motors appears to be responding differently. According to Reuters, GM told employees in a webcast Thursday that it will increase production of light-duty trucks at its Fort Wayne, Indiana plant—where it builds the Chevrolet Silverado and GMC Sierra. These models are also assembled in Mexico and Canada, but GM’s decision suggests a shift in production to the U.S. could be underway in light of the tariffs.

As Trump’s trade reset takes effect, more automakers are expected to recalibrate their production strategies—potentially signaling a long-awaited shift away from offshoring and toward rebuilding American industry.

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Business

‘Time To Make The Patient Better’: JD Vance Says ‘Big Transition’ Coming To American Economic Policy

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JD Vance on “Rob Schmitt Tonight” discussing tariff results

 

From the Daily Caller News Foundation

By Hailey Gomez

Vice President JD Vance said Thursday on Newsmax that he believes Americans will “reap the benefits” of the economy as the Trump administration makes a “big transition” on tariffs.

The Dow Jones Industrial Average dropped 1,679.39 points on Thursday, just a day after President Donald Trump announced reciprocal tariffs against nations charging imports from the U.S. On “Rob Schmitt Tonight,” Schmitt asked Vance about the stock market hit, asking how the White House felt about the “Liberation Day” move.

“We’re feeling good. Look, I frankly thought in some ways it could be worse in the markets, because this is a big transition. You saw what the President said earlier today. It’s like a patient who was very sick,” Vance said. “We did the operation, and now it’s time to make the patient better. That’s exactly what we’re doing. We have to remember that for 40 years, we’ve been doing this for 40 years.”

“American economic policy has rewarded people who ship jobs overseas. It’s taxed our workers. It’s made our supply chains more brittle, and it’s made our country less prosperous, less free and less secure,” Vance added.

Vance recalled that one of his children had been sick and needed antibiotics that were not made in the United States. The Vice President called it a “ridiculous thing” that some medicines invented in the country are no longer manufactured domestically.

“That’s fundamentally what this is about. The national security of manufacturing and making the things that we need, from steel to pharmaceuticals, antibiotics, and so forth, but also the good jobs that come along when you have economic policies that reward investing in America, rather than investing in foreign countries,” Vance said.

WATCH:

With a baseline 10% tariff placed on an estimated 60 countries, higher tariffs were applied to nations like China and Israel. For example, China, which has a 67% tariff on U.S. goods, will now face a 34% tariff from the U.S., while Israel, which has a 33% tariff, will face a 17% U.S. tariff.

“One bad day in the stock market, compared to what President Trump said earlier today, and I think he’s right about this. We’re going to have a booming stock market for a long time because we’re reinvesting in the United States of America. More importantly than that, of course, the people in Wall Street have done well,” Vance said.

“We want them to do well. But we care the most about American workers and about American small businesses, and they’re the ones who are really going to benefit from these policies,” Vance said.

The number of factories in the U.S., Vance said, has declined, adding that “millions of workers” have lost their jobs.

“My town [Middletown, Ohio], where you had 10,000 great American steel workers, and my town was one of the lucky ones, now probably has 1,500 steel workers in that factory because you had economic policies that rewarded shipping our jobs to China instead of investing in American workers,” Vance said. “President Trump ran on changing it. He promised he would change it, and now he has. I think Americans are going to reap the benefits.”

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