Canada is paying the full upfront cost of the Gordie Howe International Bridge because of a binational deal reached after years of studies, legal battles and political resistance on the U.S. side of the border.
Under the 2012 Canada-Michigan Crossing Agreement, Canada agreed to finance, build and operate the new Windsor-Detroit crossing, including portions on the American side, to move the long-delayed project forward.
The financing structure has come under renewed attention after U.S. President Donald Trump criticized the project in a Truth Social post Monday, saying Canada, “owns both the Canada and the United States side” and built it with “virtually no U.S. content.”
Trump also suggested he would not allow the bridge to open unless the United States is “fully compensated,” and said the U.S. should own at least half of the project.
Decades of studies led to the project
Planning for a new Windsor-Detroit crossing dates to the early 2000s, when Canadian and U.S. transportation agencies conducted cross-border traffic studies that found existing infrastructure would not meet future demand.
A binational planning and feasibility study between 2001 and 2004 recommended new infrastructure to handle long-term trade growth.
That work led to a coordinated environmental review from 2005 to 2008, involving hundreds of public consultations, which ultimately identified a new publicly owned bridge as the preferred solution.
Environmental approvals were granted in both Canada and the United States in 2009.
Political roadblocks in Michigan
Despite those approvals, the project stalled for years over funding.
Michigan lawmakers declined to commit state money to the crossing, amid opposition and legal challenges tied to the privately owned Ambassador Bridge.
Rather than risk further delays to a key trade corridor, Canada negotiated directly with the state of Michigan.
The 2012 crossing agreement
In June 2012, Canada and Michigan signed the Canada-Michigan Crossing Agreement, which allowed the project to move ahead.
Under the deal, Canada agreed to design, build, finance, operate and maintain the crossing through a public-private partnership.
The agreement also states the bridge will be publicly owned by Canada and Michigan, and that iron and steel for key components must be sourced from either country.
Construction and current cost
In 2012, the federal government created the Windsor-Detroit Bridge Authority, a Crown corporation responsible for delivering and operating the project.
A private consortium was awarded the contract in 2018, and construction began later that year.
The total cost is now estimated at about $6.4 billion after increases and delays.
The Windsor Detroit Bridge Authority says major construction of the bridge is complete and the project team has ramped up work on the testing and commissioning phase. The WDBA website says this work takes place before the bridge and ports of entry open to traffic and focuses on preparing the crossing for safe, secure and reliable operations.
How Canada plans to recover the money
Although Canada is covering the full upfront price, the federal government expects to recover the investment over time.
Under the agreement, tolls collected from bridge users will be used to reimburse Canada for the funds it advanced.
Once the costs are fully recouped, toll revenue will be shared with the state of Michigan.
Officials have long argued the project is a strategic investment, since the Windsor-Detroit corridor carries a significant share of trade between the two countries, particularly in the auto sector.
The crossing is expected to provide a second major link between the cities, easing congestion at the Ambassador Bridge and strengthening cross-border trade once it opens.
The Windsor-Detroit gateway is the busiest commercial land border crossing between Canada and the U.S., accounting for more than 25 per cent of overall trade between the two countries.
