BC proposes $400M investment fund, drawing criticism over taxpayer risk

The British Columbia government has introduced legislation to create a $400-million strategic investment fund aimed at backing major private-sector projects, but critics say the move expands corporate subsidies at a time of rising taxes and debt.

Premier David Eby said the proposed BC Strategic Investment Fund would allow the province to directly invest in high-impact projects through loans, equity stakes, repayable contributions and profit-sharing agreements — financial tools the government argues will help BC compete with other jurisdictions and secure federal investment.

“As the federal government looks for projects to boost forestry, defence and shipbuilding, our goal is to make sure British Columbia businesses are at the front of the line,” Eby said in a statement.

The legislation, part of Bill 3, the Budget Measures Implementation Act (No. 2), 2026, would allow the province to participate financially in projects tied to sectors such as defence, critical minerals and advanced manufacturing.

Jobs and Economic Growth Minister Ravi Kahlon said the fund is intended to help attract large-scale investment and support the province’s Look West strategy, which aims to secure $200 billion in new private-sector investment.

Under the proposal, the province could take equity positions in companies or structure loans and conditionally repayable grants in an effort to generate returns if projects succeed.

However, the plan is drawing criticism from those who argue the government should focus on controlling spending and reducing taxes instead of expanding corporate support programs.

Opponents say the fund amounts to a new round of corporate subsidies at a time when the provincial budget includes tax increases and projects an additional $30 billion in debt this year.

They argue that while the government is raising taxes and expanding borrowing, it is simultaneously setting aside hundreds of millions of dollars to support large private-sector companies — a move they say shifts financial risk onto taxpayers.

The province says the fund would complement existing programs such as the BC Manufacturing Jobs Fund, which has committed $153 million to 154 projects and leveraged roughly $1 billion in private investment.

The government says those projects have created or protected more than 4,800 jobs across the province.