Here are five developments shaping Ottawa and the National Capital Region today, with context on why they matter.
Budget 2026 puts money back into some areas of the public service cut last year
Some federal departments are reinvesting in areas they trimmed under the Carney government’s comprehensive expenditure review, according to an Ottawa Citizen report that draws on an analysis by the Canadian Centre for Policy Alternatives. Budget 2025 set out to find $60 billion in savings over several years from the operating budgets of most departments and agencies. At Immigration, Refugees and Citizenship Canada, that plan identified $282.3 million in savings for 2026-27 and targeted about 320 position reductions, while Budget 2026 now commits $252 million in the same year to asylum processing, immigration system improvements and expanded fingerprint and facial-image screening. Former parliamentary budget officer Yves Giroux said it is “a bit premature” to estimate whether jobs will come back, and the Department of Finance said budget measures are not compared program by program with the cuts. Economist Don Drummond projects federal program spending will top 15 per cent of the economy by 2030-31, the highest ratio since before the 1990s program review. For the capital’s public servants, the findings suggest last year’s cuts were not the final word, though how many positions return remains unclear. Source: Ottawa Citizen via Yahoo News Canada.
Ottawa serves Stellantis notice of default over Brampton plant sale
Industry Minister Mélanie Joly has served Stellantis with a notice of default on its 2022 funding agreement and ended a resolution process with the automaker after it announced the sale of its idled Brampton, Ont., plant to armoured vehicle maker Roshel, The Canadian Press and CBC News report. The 2022 deal included up to $529 million in federal support to retool the Brampton and Windsor plants, plus $513 million from Ontario. Joly’s letter cites breaches including halting Jeep Compass production, failing to find a replacement vehicle and closing the plant, and gives the company 30 days to take corrective action or risk having the agreement terminated and funds clawed back with interest. Thursday’s meeting in Toronto with Stellantis Canada, Unifor and Premier Doug Ford produced no resolution, and Joly said she would sue if the company does not act within 30 days. Stellantis says it has offered to voluntarily return government support tied to the original plan, while Unifor members have voted 97.3 per cent in favour of a strike mandate. With about 1,800 workers still on layoff, according to CBC, the next month will test whether Ottawa can recover public money and secure more for those workers. Sources: The Canadian Press via National Newswatch and CBC News via Yahoo News Canada.
U.S. confirms new trade talks with Canada but sets no deadline
U.S. Trade Representative Jamieson Greer told CNBC on Thursday that Canadian and American officials have spoken “within the past few days” about a possible trade deal, CTV News reports. Greer also confirmed that U.S. President Donald Trump and Prime Minister Mark Carney speak regularly, but said the substance of a deal matters more than a timeline, according to The Hub. Talks collapsed in August, and on Aug. 22 the U.S. imposed 50 per cent tariffs on about US$20 billion in Canadian goods, prompting Canadian counter-tariffs that took effect Sept. 8. Trump has also threatened to raise tariffs on Canadian vehicles, auto parts and steel to 50 per cent on Jan. 1, 2027. Ottawa wants a return to largely unrestricted cross-border trade, while Washington’s priority is protecting American supply chains, The Hub reports. With that January threat hanging over the auto and steel sectors, any movement in these talks matters directly to Canadian manufacturing jobs. Sources: CTV News and The Hub.
Microsoft outage stretches into a second day, disrupting Canadian hospitals and schools
A global Microsoft outage affecting Outlook, Teams and other Microsoft 365 services could last another full day, The Canadian Press reports, after it disrupted governments, hospitals and businesses in Canada and around the world. Microsoft first reported it was investigating at about 1 p.m. Thursday, according to CP24, and more than 130,000 Downdetector users reported Outlook problems at the peak, The Associated Press reports. In Toronto, Unity Health Toronto, which includes St. Michael’s Hospital, declared a Code Grey as staff struggled with email, though it said patient care was not affected; the University of Toronto, Seneca Polytechnic and George Brown Polytechnic also reported email problems, and VIA Rail warned passengers may not receive trip emails, CP24 reports. Microsoft says it has no indication of malicious activity, and its latest update said changes meant to restore service were “not taking as expected.” The company has not publicly identified a cause. The disruption shows how much public and private work in Canada, from hospitals to rail travel, now depends on a single cloud provider. Sources: The Canadian Press via paNOW, The Associated Press via Yahoo Finance Canada and CP24.
Nvidia CEO Jensen Huang resigns amid national security concerns
Nvidia CEO Jensen Huang resigned Thursday after reports of an extramarital affair raised national security concerns, The Associated Press reports. The affair was reportedly with a senior executive at Singapore-based Megaspeed International who, according to reports, U.S. intelligence concluded was passing information to Beijing; China has denied trying to ensnare Huang, and Trump has said the FBI is investigating. Chief financial officer Colette Kress was named interim CEO, the board named Harvey C. Jones as its first-ever chairman, and the company says it is searching for a permanent CEO, according to AP and ABC News. Nvidia said it had no reason to believe national security or company secrets were compromised. Its shares fell 10 per cent in premarket trading Thursday, AP reports. Because Nvidia’s chips underpin much of the AI boom, the sudden shake-up adds uncertainty for markets and for the wider debate over advanced chip sales to China. Sources: The Associated Press via National Newswatch and ABC News.
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