The government says the money will help support nearly 1,500 jobs over the next five years.
Industry Minister James Moore and Infrastructure Minister Denis Lebel made the announcement at company facillities in Mississauga, Ont., and Longueuil, Que., where much of the work will be done.
The contribution by the government is a $300-million repayable contribution through its Strategic Aerospace and Defence Initiative.
Pratt and Whitney Canada employs 6,000 in Canada.
The company is building the new geared turbo fan engines that are being used on Bombardier's CSeries aircraft which is undergoing flight tests.
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