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ACOA's 2025-26 Departmental plan

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From the Minister

I am pleased to present the 2025-26 Departmental Plan for the Atlantic Canada Opportunities Agency (ACOA). The Agency’s focus moving forward is clear: economic growth, boosting productivity and increasing the region’s competitiveness. This creates jobs, helps small and medium-sized enterprises grow, and drives innovation in both traditional and emerging sectors of the economy – all while improving the quality of life for Atlantic Canadians.

Atlantic Canada has tremendous growth potential and ACOA will continue to empower Atlantic Canada’s businesses and communities to innovate, go green and grow stronger. It will support key sectors, empower under-represented groups, and help communities diversify their economies. By prioritizing affordability and sustainable growth, the Agency aims to make life better for all Atlantic Canadians. Together with all levels of government, it will build a vibrant, inclusive Atlantic Canada poised for long-term prosperity.

ACOA will continue its progress by investing in skills training, innovation and technology development. These efforts will help create quality jobs, make life more affordable, and drive economic growth in communities across Atlantic Canada. Programs such as the Regional Homebuilding Innovation Initiative, the Elevate Tourism Initiative, and the Regional Artificial Intelligence Initiative are examples of how the Agency is positioning Atlantic Canada for continued success.

I invite you to read this report for more details on ACOA’s plans to strengthen Atlantic Canada’s economic foundation, enhance the vitality and prosperity of the region’s communities, and ensure a brighter, more affordable future for all.

With the wind in our sails, we are charting a course toward new horizons for Atlantic Canada.

Headshot of Gudie Hutchings

The Honourable Gudie Hutchings

Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency

Plans to deliver on core responsibilities and internal services

Core responsibilities and internal services

Core responsibility 1: Economic development in Atlantic Canada

Description

Support Atlantic Canada’s economic growth, wealth creation and economic prosperity through inclusive clean growth and by building on competitive regional strengths. Help small and medium-sized enterprise (SME) growth through direct financial assistance, and indirectly through business support organizations. SMEs become more innovative by adopting new technologies and processes, and by pursuing new avenues for expansion and market diversification to compete and succeed in a global market.

Quality of life impacts

This core responsibility contributes to the “Prosperity” domain of the Quality of Life Framework for Canada and the indicators of gross domestic product per capita, productivity, investment in in-house research and development (R&D), firm growth, and employment. This core responsibility also contributes to the “Environment” domain.

Indicators, results and targets

This section presents details on the department’s indicators, the actual results from the 3 most recently reported fiscal years, the targets and the target dates approved in 2025-26 for economic development in Atlantic Canada. Details are presented by departmental result.

Table 1: Departmental result 1 – Businesses are innovative and growing in Atlantic Canada
Departmental Result Indicators Actual results Target Date to achieve target
Number of high-growth firms in Atlantic Canada
  • 2021-22: 660
  • 2022-23: 590
  • 2023-24: 820
800 March 31, 2026
Value of export of goods from Atlantic Canada
  • 2021-22: $33,300,000,000
  • 2022-23: $41,900,000,000
  • 2023-24: $38,900,000,000
$39,000,000,000 March 31, 2026
Value of exports of clean technologies from Atlantic Canada
  • 2021-22: $458,000,000
  • 2022-23: $663,000,000
  • 2023-24: $895,000,000
$670,000,000 March 31, 2026
Revenue growth rate of firms supported by ACOA programs
  • 2021-22: 6.9%
    (2015-2020 excl. 2018)
  • 2022-23: 8.1%
    (2016-2021 excl. 2018)
  • 2023-24: 6.8%
    (2017-2022 excl. 2018)
7% March 31, 2026
Table 2: Departmental result 2 – Businesses invest in the development and commercialization of innovative technologies in Atlantic Canada
Departmental Result Indicators Actual results Target Date to achieve target
Value of business expenditures in R&D by firms receiving ACOA program funding
  • 2021-22: $93,700,000
    (2015-2019)
  • 2022-23: $104,630,000
    (2016-2020)
  • 2023-24: $103,630,000
    (2017-2021)
$105,000,000 March 31, 2026
Percentage of businesses engaged in collaborations with higher education institutions in Atlantic Canada
  • 2021-22: not available
  • 2022-23: not available
  • 2023-24: 12.0%
15% March 31, 2026
Table 3: Departmental result 3 – Communities are economically diversified in Atlantic Canada
Departmental Result Indicators Actual results Target Date to achieve target

Percentage of Atlantic Canadian SMEs that are majority owned by women, Indigenous people, youth, visible minorities or persons with disabilities

  • 2021-22: 16.7% of female ownership,
    0.4% of Indigenous ownership,
    9% of youth ownership,
    2.9% of visible minority ownership,
    1.2% of SMEs majority owned by persons with disabilities
  • 2022-23: not available
  • 2023-24: not available
  • 17% of female ownership,
  • 1% of Indigenous ownership,
  • 10% of youth ownership,
  • 4% of visible minority ownership,
  • 1% of SMEs majority owned by persons with disabilities
March 31, 2026

Percentage of professional-, science- and technology-related jobs in Atlantic Canada’s economy

  • 2021-22: 33.7%
  • 2022-23: 32.9%
  • 2023-24: 33.2%
33% March 31, 2026
Amount leveraged per dollar invested by ACOA in community projects
  • 2021-22: $1.02
  • 2022-23: $1.98
  • 2023-24: $0.88
$1.10 March 31, 2026

Additional information on the detailed results and performance information for ACOA’s program inventory is available on GC InfoBase.

Plans to achieve results

The following section describes the planned results for economic development in Atlantic Canada in 2025-26.

In 2025-26, ACOA will remain a reliable source of place-based investments in Atlantic Canada to build a stronger and more resilient economy that works for everyone. This will help firms scale up, develop new markets and adopt new technologies and processes to be more productive and sustainable. Activities will help Atlantic Canadians, including groups such as Indigenous peoples and rural communities that are under-represented in the economy, to advance and diversify regional economies in an inclusive way.

ACOA’s overarching strategic priority will be enhancing productivity and growth. The Agency will emphasize efforts aimed at closing the productivity gap of the region. This will be done by focusing on 3 areas:

  1. Growing strategic sectors: ACOA will promote place-based economic diversification and market expansion by propelling key sectors such as biosciences, cybersecurity, clean technologies, and aerospace and defence.
  2. Technology adoption: The Agency will help SMEs increase the adoption of automation and advanced digital technologies, including artificial intelligence, to optimize their value, create efficiencies and reduce waste.
  3. Workforce development: ACOA will work with businesses to ensure that key industries have the skilled workers needed to enhance their productivity, and help communities attract and develop the talent required to foster economic growth.

The Agency’s focus on productivity, competitiveness and diversification, combined with ACOA’s flexible programming and close relationship with its business clients, will help Atlantic Canadian SMEs, sectors and communities navigate economic insecurity, mitigate the impacts of U.S. trade disruptions, and ensure future growth and competitiveness. The region has strong and deep trade ties with its trade partners, particularly in the U.S., and the Agency’s flexible programming can help mitigate disruptions to those ties by enhancing the region’s value proposition.

Atlantic Canada has the ingredients to become an economic force and a magnet for investment in the future. It has seen recent population, employment and capital investment development that create the right conditions for growth. Through its promotion of Atlantic issues and its suite of programming, ACOA will prioritize productivity to foster economic competitiveness, boost business growth, and lead to higher living standards. Advocacy and pathfinding in national policies and programs will also help Atlantic Canadian stakeholders leverage opportunities and ensure the region is at the forefront of Canada’s overall economic success.

The Agency will maximize the potential of its suite of programming, including the Regional Economic Growth through Innovation program, one of the Government of Canada’s 4 flagship platforms for economic development. It will also enhance competitiveness and growth through technology development, commercialization, adoption and adaptation, productivity improvements, and market expansion with trusted trading partners. Broad-based support will be complemented by more targeted growth-enabling initiatives such as the Regional Homebuilding Innovation Initiative. This initiative will support innovative approaches for building houses, including designing and upscaling modular homes, the use of 3D printing, panelized construction, as well as implementing net-zero and climate-resilient homebuilding practices to build houses faster and make them more affordable. Additionally, the Regional Artificial Intelligence Initiative will help SMEs adopt and adapt artificial intelligence (AI) solutions by bridging the gap between cutting-edge research and broader marketplace applications, positioning Atlantic Canadian businesses for future success. Finally, focused investments such as the Tourism Growth Program and its Elevate Tourism Initiative will help diversify regional economies, notably by investing in tourism products and experiences that will encourage visitation to and within Atlantic Canada.

ACOA’s key priorities and its Minister’s mandate letter commitments are guiding principles in the achievement of its core responsibilities through the 3 departmental results below:

Departmental result 1: Businesses are innovative and growing in Atlantic Canada

The Agency will work with SMEs to capitalize on sector strengths and capacities, develop and diversify markets, and scale up by:

Results we plan to achieve:

  • helping businesses at various stages of development – from start-up to maturity – to enhance their productivity, adapt and green their operations, accelerate their growth, scale up, optimize their supply chains, and be competitive in domestic and global markets. This includes leveraging company-oriented growth plans under the Accelerated Growth Service, led by Innovation, Science and Economic Development’s Innovation Canada in partnership with other federal and provincial organizations. The service builds a pipeline of clients with strong potential for growth and provides them with focused sales and export support in a dynamic trade environment
  • accelerating digitization and the use of transformative technologies in Atlantic Canada. This will ensure businesses have the capacity to implement advanced-manufacturing solutions to be more innovative, agile and resilient in response to changing market conditions. This includes increasing the use of e-commerce to facilitate business transactions, better meet consumer demand, generate added sales and increase efficiency
  • enabling and diversifying growth through exports in key industry sectors and dynamic markets, ensuring a greater presence for Atlantic Canadian companies in key markets either in person or through e-commerce and virtual trade, and promoting foreign direct investment with the Atlantic Trade and Investment Growth Strategy
  • continuing to deliver the 3-year Tourism Growth Program in Atlantic Canada to support the tourism industry and contributing to the Federal Tourism Growth Strategy, which charts a course for long-term growth, investment and stability. This includes implementing the Elevate Tourism Initiative, a focused effort to enhance regional tourism offerings. ACOA will also collaborate with federal, provincial and industry partners to implement the Atlantic Canada Agreement on Tourism
  • advocating and partnering to foster the participation of Atlantic Canadian companies in emerging clean technologies such as wind-to-hydrogen, energy storage, small modular reactors, hydroelectricity and critical mineral development, and supporting Atlantic Canadian companies in traditional energy industries as they transition to a low-carbon future. This includes working closely with motivated partners through ACOA’s Clean Growth Initiative
  • positioning Atlantic Canadian firms to leverage major Canadian Coast Guard and defence procurement through Canada’s Industrial and Technological Benefits policy by networking with regional stakeholders and global aerospace and defence firms
Departmental result 2: Businesses invest in the development and commercialization of innovative technologies in Atlantic Canada

The Agency will help businesses invest in new technologies to improve their efficiency, productivity, competitiveness and growth, notably by:

Results we plan to achieve:

  • fostering investments in R&D among Atlantic Canadian firms to enhance their productivity, reduce their environmental footprint, and improve their capacity to innovate to help create industry-advancing solutions for some of the biggest sectoral challenges, and to grow trade through partnerships between innovators. This includes supporting the region’s innovators who develop and commercialize clean technologies, products and services
  • creating, growing and nurturing inclusive regional ecosystems that support business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness by convening innovation ecosystem stakeholders. This includes supporting collaboration between SMEs and the region’s business incubators and accelerators, research organizations and post-secondary institutions
  • addressing the AI adoption lag among Canadian businesses and helping enhance productivity, growth and competitiveness. Support will focus on investing in companies developing AI-based solutions and addressing challenges faced by SMEs, such as skills gaps, AI integration complexities, and compliance with regulatory and industry standards
  • helping advance energy innovation by leveraging the region’s significant potential for renewable energy, electrification and energy efficiency while also enhancing its competitiveness in the global marketplace
Departmental result 3: Communities are economically diversified in Atlantic Canada

The Agency will invest in inclusive growth, support the launch and growth of SMEs, and invest in community capacity to plan, attract, hire and retain skilled talent to support a clean and sustainable economy. ACOA will:

Results we plan to achieve:

  • support local and regional economic diversification in communities to foster place-based growth in key sectors and to support them in the transition to a cleaner economy
  • promote diversity and inclusion to enhance SME competitiveness by delivering support for under-represented entrepreneurs, helping existing SMEs adopt more inclusive practices, and addressing gaps in the ecosystem to help all entrepreneurs grow their businesses and pursue new opportunities
  • reach a larger number of Indigenous businesses by supporting efforts that target capacity building, working closely with Indigenous communities and organizations, pathfinding to national programs to leverage support, and increasing knowledge and awareness by convening federal and provincial governments, stakeholders and community partners through joint participation in key committees, initiatives and communities of interest
  • help non-profit, third-party organizations such as Community Business Development Corporations support SMEs in small, rural and remote communities
  • help communities attract and develop the talent required to foster economic growth by acting as a pathfinder, notably supporting federal and provincial partners with better labour market matches. This includes working with provincial and federal partners to support the inclusive workforce of the future by improving school-to-work transitions, helping to build new skills in growing sectors, increasing digital skills, and recruiting and retaining skilled newcomers by leveraging initiatives such as the Atlantic Immigration Program

Key risks

ACOA has identified 2 main risks to fulfilling its mandate. The first is a risk that the Agency’s economic development programming may be affected by external factors that contribute to uncertainties for economic growth in Atlantic Canada, such as potential trade disruptions with the U.S. The second is a risk that the capacity of ACOA’s stakeholders – other governments, partners, communities and clients – for the identification, development and successful implementation of strategic projects may not be sufficient to support the optimal achievement of its program objectives.

ACOA will continue to capitalize on the flexibility of its programs, including emergency funding, on its advocacy role, close relationship with its business clients, and on its integrated planning to mitigate potential risks associated with an evolving economy and the depth of regional stakeholders’ capacity. The Agency will also conduct analyses on regional economic issues and collaborate with stakeholders to foster client and community capacity to help achieve targets under key federal priorities.

Planned resources to achieve results

Table 4: Planned resources to achieve results for economic development in Atlantic Canada
Table 4 provides a summary of the planned spending and full-time equivalents required to achieve results.
Resource Planned
Spending $333,256,478
Full-time equivalents 379

Complete financial and human resources information for ACOA’s program inventory is available on GC InfoBase.

Related government priorities

Program inventory

Economic development in Atlantic Canada is supported by the following programs:

  • Inclusive Communities
  • Diversified Communities
  • Research and Development, and Commercialization
  • Innovation Ecosystems
  • Business Growth
  • Trade and Investment
  • Policy Research and Engagement

Additional information related to the program inventory for economic development in Atlantic Canada is available on the Results page on GC InfoBase.

Internal services

Description

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

  • management and oversight services
  • communications services
  • legal services
  • human resources management services
  • financial management services
  • information management services
  • information technology services
  • real property management services
  • materiel management services
  • acquisition management services

Outside of these services, ACOA created the Office of Inclusion, Equity and Anti-Racism. This office is a neutral entity that provides leadership, strategic direction, policy advice, professional development, and expertise with respect to inclusion, equity and anti-racism within the Agency. It will engage external stakeholders in supporting corporate inclusion initiatives to remove systemic barriers.

Plans to achieve results

This section presents details on how the department plans to achieve results and meet targets for internal services.

In 2025-26, ACOA’s Internal Services will continue to support sustainable change and the modernization of its processes. This includes being inclusive, equitable and accessible, and aiming to be free of racism, harassment and discrimination. Ultimately, these efforts will support the Agency’s standard of excellence for Atlantic Canadians through effective programs and services. To do so, Internal Services will:

  • continue to implement strategies that align with government priorities, providing accurate and timely information for decision making as well as modernizing operations to support efficiencies and maintaining a high standard of program delivery and services that benefit Canadians, support regional representation and maintain a diverse workforce
  • continue to modernize the Agency’s grants and contributions program management system and the associated client web portal to enhance program operations, improve client services and streamline program delivery. This modernization effort aims to make it easier for the public to access ACOA services, ensuring a more user-friendly and efficient experience
  • support the Government of Canada’s updated Digital Ambition strategy, notably by modernizing tools and investing in strategies such as AI to improve operational and internal process efficiencies
  • implement the third year of its 2023–2026 Employment Equity, Inclusion and Anti-Racism Plan to promote and support a diverse and inclusive workplace. This includes continued support for the Elder-in-Residence Initiative, which fosters stronger Indigenous reconciliation within the Agency; continued delivery of the Diversity, Inclusion, Competence, Excellence (DICE) course, which was specifically designed to promote awareness and action regarding diversity and inclusion in the workplace; and prioritizing official languages training for equity employees throughout the Agency
  • continue to prioritize mental health, wellness and official languages by supporting activities and initiatives aligned with the Clerk’s Call to Action and other government-wide strategies such as the “Nothing Without Us” accessibility strategy, the Federal Public Service Workplace Mental Health Strategy and the Workplace Harassment and Violence Prevention Program, and ensuring compliance toward the modernized Official Languages Act
  • continue to advance the conversation on values and ethics through a renewed Code of Conduct and by fostering a culture of trust and accountability at all levels of the organization
  • continue to develop employee leadership at all levels with the new Building and Supporting Leaders talent management approach, with specific consideration for employees from equity groups. For example:
    • participation of ACOA employees in the Atlantic Federal Council’s Diverse Leadership Development and Building Black Leaders programs, as well as in the Treasury Board Secretariat’s Mosaic Leadership Development program and Mentorship Plus initiative
    • greater access to language training to align with the Agency’s priorities on representation and succession planning
    • enhanced leadership coaching opportunities

Planned resources to achieve results

Table 5: Planned resources to achieve results for internal services this year
Table 5 provides a summary of the planned spending and full-time equivalents required to achieve results.
Resource Planned
Spending $28,767,878
Full-time equivalents 193

Complete financial and human resources information for ACOA’s program inventory is available on GC InfoBase.

Planning for contracts awarded to Indigenous businesses

Government of Canada departments are to meet a target of awarding at least 5% of the total value of contracts to Indigenous businesses each year. This commitment is to be fully implemented by the end of 2024-25.

ACOA is resolute in supporting the Government of Canada’s commitment that 5% of the total value of all contracts be awarded to Indigenous businesses. ACOA is a Phase 2 organization and was required to achieve the minimum 5% target by the end of fiscal 2023-24. The Agency surpassed the target, with a result of 27.8 %, and plans to surpass it for the next 2 years.

Table 6: Percentage of contracts planned and awarded to Indigenous businesses
Table 6 presents the current, actual results with forecasted and planned results for the total percentage of contracts with Indigenous businesses.
5% reporting field 2023-24 actual result 2024-25 forecasted result 2025-26 planned result
Total percentage of contracts with Indigenous businesses 27.8% 5% 5%

Planned spending and human resources

This section provides an overview of ACOA’s planned spending and human resources for the next 3 fiscal years and compares planned spending for 2025-26 with actual spending from previous years.

Spending

This section presents an overview of the department's planned expenditures from 2022-23 to 2027-28.

Budgetary performance summary

Table 7: Three-year spending summary for core responsibilities and internal services (dollars)
Table 7 presents how much money ACOA spent over the past 3 years to carry out its core responsibilities and for internal services. Amounts for the current fiscal year are forecasted based on spending to date.
Core responsibilities and internal services 2022-23 Actual expenditures 2023-24 Actual expenditures 2024-25 Forecast spending
Economic development in Atlantic Canada 402,753,191 447,178,438

363,917,964

Internal services 30,372,837 31,252,148

29,992,234

Totals 433,126,028 478,430,586 393,910,198

More financial information from previous years is available on the Finances section of GC Infobase.

Table 8: Planned three-year spending on core responsibilities and internal services (dollars)

Table 8 presents how much money ACOA plans to spend over the next 3 years to carry out its core responsibilities and for internal services.
Core responsibilities and internal services 2025-26 Planned spending 2026-27 Planned spending 2027-28 Planned spending
Economic development in Atlantic Canada

333,256,478

241,991,966 227,596,202
Internal services

28,767,878

28,610,499 28,610,283
Totals 362,024,356 270,602,465 256,206,485

More detailed financial information on planned spending is available on the Finances section of GC Infobase.

Funding

This section provides an overview of the department's voted and statutory funding for its core responsibilities and for internal services. For further information on funding authorities, consult the Government of Canada budgets and expenditures.

Graph 1: Approved funding (statutory and voted) over a six-year period

Graph 1 summarizes the department's approved voted and statutory funding from 2022-23 to 2027-28.

[alt text]. Text version below:

For further information on ACOA’s departmental appropriations, consult the 2025-26 Main Estimates.

Future-oriented condensed statement of operations

The future-oriented condensed statement of operations provides a general overview of ACOA’s operations for 2024-25 to 2025-26. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management. The forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure basis; as a result, amounts may differ.

A more detailed future-oriented statement of operations and associated notes for 2025-26, including a reconciliation of the net cost of operations to the requested authorities, are available on ACOA’s website.

Table 11: Future-oriented condensed statement of operations for the year ended March 31, 2026 (dollars)

Table 11 summarizes the expenses and revenues that net to the cost of operations before government funding and transfers for 2024-25 to 2025-26. The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.
Financial information 2024-25 Forecast results 2025-26 Planned results Difference (forecasted results minus planned)
Total expenses 273,373,781 238,686,815 (34,686,966)
Total revenues 19,964 31,037  11,073
Net cost of operations before government funding and transfers 273,353,817 238,655,778 (34,698,039)

Human resources

This section presents an overview of the department’s actual and planned human resources from 2022-23 to 2027-28.

Table 12: Actual human resources for core responsibilities and internal services

Table 12 provides a summary of human resources, in full-time equivalents, for ACOA’s core responsibilities and for its internal services for the previous 3 fiscal years. Human resources for the current fiscal year are forecast based on year to date.
Core responsibilities and Internal Services 2022-23 Actual full-time equivalents 2023-24 Actual full-time equivalents 2024-25 Actual full-time equivalents
Economic development in Atlantic Canada 386 371 366
Internal services 210 199 206
Totals 596 570 572

Table 13: Human resources planning summary for core responsibilities and internal services

Table 13 shows information on human resources, in full-time equivalents, for each of ACOA’s core responsibilities and for its internal services planned for the next 3 years.
Core responsibilities and Internal Services 2025-26 Planned full-time equivalents 2026-27 Planned full-time equivalents 2027-28 Planned full-time equivalents
Economic Development in Atlantic Canada 379 373 373
Internal services 193 190 190
Totals 572 563 563

Corporate information

Supplementary information tables

The following supplementary information tables are available on ACOA’s website:

Information on ACOA’s departmental sustainable development strategy can be found on ACOA’s website.

Federal tax expenditures

ACOA’s Departmental Plan does not include information on tax expenditures.

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures.

This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and Gender-based Analysis Plus of tax expenditures.

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