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January 7, 2026

2026 Political Outlook: Political Volatility, Policy Execution, and Strategic Opportunity

written by
Federal Team
2026 Political Outlook: Political Volatility, Policy Execution, and Strategic Opportunity

Canada enters 2026 with a Prime Minister eager to produce results, an opposition doggedly determined to slow him down and prevent a majority within the Commons, a fragile economy, renewed trade risk with the United States, and separatism stirring once again in Quebec. At the same time, major federal investments are beginning to move from commitment to implementation, creating significant opportunity for well-positioned organizations.

Our 2026 Political Outlook examines how these pressures are reshaping federal decision-making in real time. It explores the government’s growing reliance on executive authority and new delivery agencies to push projects forward in a minority Parliament, the implications of ongoing trade uncertainty with the United States as CUSMA renegotiations approach, and the re-emergence of sovereignty politics in Quebec.

The report then turns to where federal action is moving fastest in the year ahead, as major investments in infrastructure, housing, artificial intelligence, defence, and major projects shift from announcement to execution. It also examines how the new Buy Canadian policy is changing procurement dynamics and what organizations will need to prepare for to compete effectively in 2026.

See where federal priorities, policy risk, and opportunity intersect in 2026. Click here to read our full report.

H‍appy to help

‍We are pleased to provide this analysis to Sussex clients and contacts. As always, please feel free to contact your Sussex consultant with any questions.

Devin McCarthy
Partner, Federal Practice Lead
dmccarthy@sussex-strategy.com
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Bill Hawkins
Head, Trade & Investment
bhawkins@sussex-strategy.com
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Katherine Koostachin
Vice President, Indigenous Relations & Reconciliation
kkoostachin@sussex-strategy.com
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Hendrik Brakel
Director, Federal
hbrakel@sussex-strategy.com
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Roberto Chavez
Director, Federal & Energy
rchavez@sussex-strategy.com
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Audrey Dépault
Director, Energy & Transportation
adepault@sussex-strategy.com
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Liam Daly
Senior Associate, Federal
ldaly@sussex-strategy.com
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