Kevin Page, former senior federal official and now head of the Institute of Fiscal Studies and Democracy, and Julie St-Pierre, uOttawa’s Vice-President, Research and Innovation, broke down what’s coming and what researchers should be paying attention to now.
A budget shaped by pressure, not routine
“The federal budget is a political document,” Page said, as he reminded the room of how much that matters in a minority Parliament. “It’s a vote of confidence. If Parliament disagrees, the government could fall.”
But beyond parliamentary mechanics, Page framed the 2025 budget as a response to a much deeper shift in context. This is a budget written for a moment defined by geopolitical instability, trade disruption and renewed concerns about national security and sovereignty.
Even the title of the budget — Canada Strong — signals a break from recent framing. Where previous budgets emphasized social cohesion or environmental leadership, this one stresses growth, strength and independence.
“The Prime Minister is saying: we’re going to be singularly focused on economic growth and national defence, and I’m prepared to run higher deficits to do that,” Page noted. He argued that in a weak economy, deficits are inevitable: the question is what the deficit will be spent on, and in this case, the answer is economic independence and political sovereignty.
That shift carries real trade-offs. Page pointed to the striking fact that a prime minister known for environmental leadership and carbon pricing is now willing to pause those priorities to protect the country’s strategic position. “Canada has historically underinvested in defence,” he said. “This budget marks a major shift.”
For the public service, the ask is blunt: move fast, build new programs and manage scale all at once.
“The system is being pushed to create new agencies and programs while injecting roughly $30 billion into the economy. That’s not business as usual.”
Kevin Page
— Founding President and CEO, Institute of Fiscal Studies and Democracy, University of Ottawa
Research funding, but with a clock ticking
“For research, in my timeline, I’ve never seen a budget like this,” said Julie St-Pierre. “The $1.7 billion for research talent is truly unique — not just for its size, but for its speed. We need to seize this moment.”
The funding is focused on recruiting senior investigators and supporting early-career faculty, trainees and students, with implementation timelines measured in months, not years. “Speed and scale are defining features,” she stressed.
St-Pierre broke research down to its non-negotiables: people, operating funds and infrastructure. This budget, she noted, is unusually complete.
One detail stood out clearly: the Canada Foundation for Innovation will cover 100% of infrastructure costs for projects funded through the new Canada Impact+ Research Chairs, removing the usual requirement for provincial matching.
“That’s a major enabler,” she said, especially for institutions trying to move quickly.
Funding horizons are also longer than usual: up to eight years, with possible four-year renewals, for Impact+ chairs and for projects aligned with government priorities, such as clean technology, security, defence, climate resilience, Arctic research, quantum science, AI and health care, all areas in which uOttawa is already playing an active and growing role.
She also pointed to new funding aimed at developing intellectual property and keeping it in Canada, which addresses a long-standing weakness in the national research ecosystem. Canada has historically excelled at discovery, she noted, but struggled to retain the economic value of its research. This budget signals a push to change that.
“Research matters because the solutions we rely on today — in health, technology and public policy — are the discoveries of yesterday. This budget reflects a long-term vision.”
Julie St Pierre
— Vice-President, Research and Innovation, University of Ottawa
A fair question from the floor
One question raised during the discussion brought to light a tension that many researchers recognize. A faculty member asked whether a strong emphasis on international recruitment risks sidelining researchers already working in Canada, particularly in the context of recent budget reductions to core research funding.
St-Pierre emphasized that the Impact+ program is designed to support the full research pipeline — from students to senior investigators — and that recruited researchers come with substantial, long-term operating funding (up to 12 years). Those funds support trainees, research programs and infrastructure, rather than drawing resources away from existing envelopes.
The intent, she explained, is not substitution but expansion: growing capacity without hollowing out the current system. She also noted that the program is designed in part to attract Canadian researchers currently working abroad who may be seeking to return.
Page widened the lens further. He noted that compared to peer countries, Canada still underinvests in research and development (R&D). “This budget is a step forward,” he said, “but it’s incremental. It sets a foundation, but it doesn’t finish the job.”
The real pressure point: readiness
If there was one message researchers could take home, it was this: timelines are tight.
“Universities need to mobilize quickly,” St-Pierre said. “The first intake for Impact+ starts in March, followed by a second one in June.”
That means that teams need to assemble fast, applications need to be submitted quickly, and institutions need to coordinate internally and externally with government and industry. The funding is there, so it’s time for us to seize the moment.
This discussion was part of the Brown Bag Lunch on Public Policy series hosted by the Office of Public Policy Research and Outreach (OPPRO), a unit of uOttawa’s Office of the Vice-President, Research and Innovation. Explore upcoming sessions and related activities on the OPPRO website.