New $100 Million Commodities Sectoral Support Program Offers 50% Steel Freight Rebate
24/08/2026
Moving Canadian steel across a provincial border just became considerably less expensive for eligible shippers.
On August 10, 2026, Transport Canada launched the Commodities Sectoral Support Program (CSSP), a new federal rebate designed to reduce the cost of transporting Canadian steel and eligible steel products between provinces and territories. With up to $100 million available, the CSSP can reimburse eligible Canadian shippers for 50% of qualifying rail or marine transportation costs.
“Hamilton’s steel industry is of vital, strategic, national importance, as are the producers in steel industries from all over Canada. We will defend this industry to the very end, and we will make sure that this industry not only survives but thrives and prospers.”
– Steven MacKinnon, Minister of Transport of Canada
For Canadian steel producers, distributors, intermediaries, end users, and other organizations paying substantial freight costs, the CSSP rebate could provide significant cost relief while supporting access to domestic markets.
Applications are actively being accepted, and timing is important. Transport Canada is assessing claims on a first-come, first-served basis according to submission date, and the program will remain available only while funding lasts.
Funding Snapshot: Commodities Sectoral Support Program (CSSP)
The CSSP is designed to make it more economical to move Canadian steel within Canada and to encourage stronger interprovincial supply chains.
Program Objective
The federal government wants to lower domestic transportation costs for Canadian steel and help businesses reach customers in other Canadian provinces and territories by:
- Supporting the movement of Canadian steel and steel products within Canada
- Helping offset interprovincial rail and marine freight expenses
- Supporting stronger domestic supply chains and increased interprovincial trade
Funding Amount
Rather than providing a traditional project contribution, CSSP reimburses part of an eligible shipper’s transportation costs. The program features:
- Up to $100 million in available funding
- A rebate equal to 50% of eligible transportation costs
- Up to $50 million in cumulative funding for eligible recipients
- Rebates calculated after applicable freight discounts or incentives have been applied
Eligible Applicants
Eligibility focuses on the organization or person responsible for arranging and paying for transportation:
- Private-sector organizations may qualify.
- Provincial, territorial, municipal, and local governments may also qualify.
- The applicant must be the “shipper” that arranges transportation and incurs the freight cost.
- A shipper may be a producer, intermediary, or end user.
Eligible Shipments
The program applies specifically to qualifying Canadian steel and steel products transported within Canada, including eligible factors such as:
- Products must appear on Transport Canada’s eligible-product list.
- Shipments must originate and terminate in Canada.
- Goods must cross at least one provincial or territorial boundary.
- Eligible rail movements must generally involve carload shipments.
- Eligible marine movements must involve non-containerized cargo.
- Mill certification documentation must demonstrate the Canadian origin of the steel.
- There is no minimum shipment volume specified by Transport Canada.
Timeline
CSSP has already opened, but available funding could determine its actual closing date. A few CSSP program details to note:
- Program launch is August 10, 2026.
- Eligible shipments must be shipped and invoiced on or after August 10, 2026.
- Applications are currently being accepted.
- The federal announcement indicates the program may run until Summer 2027.
- Funding can close earlier once the available $100 million is fully claimed.
- Claims are considered based on their submission date.
Why Businesses Should Consider Applying Early
Since CSSP applications are assessed on a first-come, first-served basis by submission date, the program will only remain open while funding is available. Although the Government of Canada expects the program to run until Summer 2027, the full $100 million allocation could be committed earlier.
Applicants must first register through the CSSP online portal and provide information such as their business number, Canadian operating address, and banking details. Once registration is complete, businesses can submit eligible shipments and support documentation through the portal. Transport Canada indicates that approved, complete claims are expected to receive payment within 20 business days after approval.
For businesses with recurring eligible shipments, establishing a consistent process for tracking freight invoices, mill certificates, product codes, shipment dates, origins, and destinations can make future claims easier to prepare.
How CSSP Fits into Canada’s Broader Steel Support Measures
CSSP is designed specifically to reduce domestic freight costs for eligible Canadian steel shipments. It is separate from federal tariff remission programs, which address customs duties paid on imported goods.
For steel companies facing a combination of transportation costs, tariff pressures, capital investment needs, and supply-chain challenges, CSSP may form one part of a broader government funding strategy. Businesses may also benefit from reviewing other programs that support productivity, automation, market diversification, and capacity expansion.
Organizations that regularly ship Canadian steel across provincial or territorial borders should review their eligibility as early as possible. Our Canadian Government Funding team can help assess program fit, identify eligible costs, and prepare well-supported applications and claims. Contact our team to determine whether your business qualifies for CSSP and get started on your funding applications.
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