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NWT adds $41M in housing spending to draft budget

Finance Minister Caroline Wawzonek speaks to reporters ahead of the 2025-26 budget release. Emily Blake/Cabin Radio

The NWT’s finance minister says she will add more than $41 million in new housing money to the territory’s latest budget, among other spending.

Caroline Wawzonek announced the changes to the NWT government’s 2025-26 draft operating budget in the Legislative Assembly on Wednesday afternoon. She said the additional investments “reflect the priorities of this assembly and the needs of northerners.”

Following discussions with regular MLAs, Wawzonek said cabinet plans to add $41.6 million in spending for Housing NWT “to make critical investments in public housing.”

She said the government is also committing $50 million per year over the next two years toward a long-term plan to modernize and replace ageing public housing.

“In making this commitment, we are cognizant that we’re living at a time where businesses are worried and a climate of tariffs, tariff threats and financial uncertainty,” she said.

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“Housing Northwest Territories already has innovative partnerships with Northwest Territories Indigenous governments and businesses … and this commitment can help deepen and build upon them. This three-year commitment thus supports a plan that we believe can be delivered by northerners, for northerners.”

MLAs must still vote to pass the budget before that spending is finalized. That vote is expected later this week.

Inuvik Boot Lake MLA Denny Rodgers, who chairs an accountability and oversight committee made up of all 11 regular MLAs, said housing is a priority need. He described the new spending as “no small ask.”

Wawzonek further committed to develop a strategy and policy to forgive arrears and stop the garnishment of Elders, and ensure such a policy is in place before the 2025-26 debt forgiveness period. Monfwi MLA Jane Weyallon Armstrong has repeatedly raised the issue of Housing NWT collecting arrears from Elders in the 19th and 20th assemblies.

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Wawzonek added on Wednesday that the government would restore $100,000 in funding for the family violence shelter network, which had been slated to be cut from the operating budget.

“This budget is … the product of the consensus process and together we are advancing these meaningful investments for the Northwest Territories,” Wawzonek said, thanking regular MLAs for their contributions.

On the issue of the pending closure of community learning centres, the finance minister told the assembly the NWT government would work with Indigenous governments and community organizations “to ensure that residents will continue to have access to quality adult education and employment programs.” She said a timeline for that work would be provided before the end of the May sitting of the assembly.

Wawzonek first unveiled the draft budget early last month. She described it at the time as “using the resources that we have for change” during a time of uncertainty.

The budget initially projected $2.5 billion in spending and $2.7 billion in revenue. That left an operating surplus of $170 million, after adjustments, which would partially cover the $339-million capital budget MLAs passed last year.

The proposed budget also forecast that the territory’s total debt would reach $1.77 billion by the end of the fiscal year.

While the NWT government’s fiscal sustainability strategy has aimed to find $150 million annually through spending cuts and revenue increases, the 2025-26 draft operating budget initially included a total of $9.1 million in reductions and a little more than $1 million in revenue increases.

Some regular MLAs have criticized the draft operating budget for not doing enough to advance the assembly’s priorities while also failing to meet fiscal sustainability targets. Some have described it as “a status quo budget.”

The federal government increased the territory’s borrowing limit from $1.8 billion to $3.1 billion earlier this month.