The two-year expenditure will go toward Atlantic WoodWorks, an initiative led by the non-profit Maritime Lumber Bureau.
The initiative, an expansion of a national Canadian Wood Council program, aims to promote the economic and environmental benefits of using locally-produced wood in commercial and municipal projects.
The governments of Nova Scotia, New Brunswick and Newfoundland and Labrador are contributing more than $134,000 to the program.
The Canadian Wood Council is chipping in more than $159,000.
In a statement, the federal government says the program will use seminars, a newsletter and a website in its promotional efforts.