On March 19, 2025, the Government of Saskatchewan tabled its 2025-2026 budget in the Legislative Assembly, outlining record $4.6-billion capital infrastructure spending aimed at supporting new and continuing infrastructure projects throughout Saskatchewan.
In its 2025-2026 budget speech, the Government of Saskatchewan outlined the following plans and initiatives for Saskatchewan’s infrastructure, including health care, Crown utilities, education and highways:
Health care
With regards to health care, the Government announced a $140-million increase from the previous year, bringing the total capital health-care spending to a record $657 million for 2025-2026.
$322 million of that allocation is committed to the construction of the multi-level acute care tower at the Prince Albert Victoria Hospital. Additionally, the ongoing Weyburn General Hospital replacement project is receiving $24.4 million to continue construction of the new facility.
Regina, La Ronge and Grenfell are all receiving funding for the construction of long-term care facilities with $40 million for Regina, $34 million in La Ronge and $10 million in Grenfell.
The Government is also investing in developing other new urgent care facilities throughout Saskatchewan, including in Saskatoon with a $3-million investment in partnership with Ahtahkakoop Cree Developments. There is also a commitment for an additional $1 million in support for the planning of new urgent care centres in Prince Albert, Moose Jaw and North Battleford, as well as second urgent care centres in Regina and Saskatoon.
Crown utilities
Saskatchewan’s Crown corporations are receiving nearly $2.8 billion in capital investments.
Of this, SaskPower is receiving an allocation of $1.7 billion to continue improving Saskatchewan’s electricity system and to keep up with demand. This includes the construction of the 370 MW natural gas-fired electrical plant in south-central Saskatchewan and the expansion of the Southwest Power Pool transmission interconnection.
SaskEnergy is receiving $510 million to improve the Province’s natural gas transmission and distribution system. This investment is primarily aimed at meeting the growth in demand for natural gas mainly from the industrial and power generation sectors. Additionally, some of this funding is going toward SaskPower’s next natural gas power station in south-central Saskatchewan, the main focus of SaskEnergy’s capital planning for the next two years.
Finally, $591 million will be invested in other Saskatchewan Crown corporations such as SaskTel, which is receiving an allocation of $466 million to support the continued deployment of fibre optics throughout rural Saskatchewan and the modernization of network infrastructure such as the rollout of SaskTel’s 5G wireless network.
Education and post-secondary
The budget also invests $191 million for K-12 education infrastructure projects across Saskatchewan.
$140 million is for ongoing funding for 21 new or consolidated schools and three major renovations in Regina, Saskatoon, Lanigan, Carlyle, Moose Jaw, Prince Albert, Pinehouse, Balgonie and Swift Current.
Planning is ongoing for the replacement of South Corman Park School, and pre-planning for a new joint-use public and Catholic elementary school in Saskatoon Northeast as well as for new public and catholic elementary schools in Saskatoon West.
An additional $41 million is being invested in the post-secondary education sector to improve learning environments and align academic programs with labour market needs. Some of these capital projects include $2 million for the new Saskatchewan Polytechnic campus in Saskatoon, $1 million for the Carlton Trail College Technical Facility expansion in Humboldt and $470,000 for planning a new North West College campus in North Battleford.
$25 million is also being provided to post-secondary institutions for preventative maintenance and renewal to ensure safe and functional campuses for students and faculty across Saskatchewan.
Highways
The 2025-2026 budget provides for $436 million in capital projects and programs through the Ministry of Highways. This investment is to be allocated toward improving Saskatchewan’s highway network, including more than 1,000 km of highways, and continued construction and design of passing lanes and twinning projects. Additionally, this investment includes the repair or rebuilding of 18 bridges and 100 culverts around the province.
Takeaways for the construction industry
Shortly after the Speech from the Throne was delivered, the Construction Association of Saskatchewan issued a response which expressed optimism regarding the continued record-breaking capital invest, although they also expressed concern regarding recent tariff related policies.
While the ambitious plans for continued infrastructure investments looks promising for the economic outlook of construction industry participants, other challenges facing the construction industry such as labour shortages, inflation and now the threat of tariffs from the United States remain worrying.
That said, the 2025-2026 budget continues to demonstrate the Government’s commitment to its aggressive infrastructure plans over the last number of years, and we expect it will generally be embraced by contractors, consultants, suppliers and other industry participants looking to get involved in public projects.
MLT Aikins has the right combination of legal and industry experience to help you navigate the rapidly evolving legislative and regulatory landscape, including in updating your construction contracts, establishing administrative procedure and policy, as well as training employees. We can help your organization prepare for these changes and developments, reducing the risk. Contact a member of our construction & infrastructure team for assistance.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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