Calls grow for Ottawa to replace a major infrastructure program set to end in 2028
Canada’s municipal leaders are calling on the federal government to boost infrastructure funding, warning that without it, the country’s housing and economic goals will fall short.
The Federation of Canadian Municipalities (FCM) delivered the message during its annual Advocacy Days, when nearly 200 local leaders held more than 90 meetings with ministers, MPs, and senior officials on Parliament Hill.
“You can’t build homes, move goods, or keep Canada competitive without strong local infrastructure,” said FCM president Rebecca Bligh. “Every shipping container starts and ends its journey on a municipal road. Every new home needs water, transit, and emergency services. Without serious investment in local infrastructure, we risk nation-building stalling before it starts.”
The warning comes as Ottawa aims to build 500,000 homes annually to restore housing affordability while strengthening supply chains to grow the economy, as highlighted in a news release. But FCM says those ambitions depend on robust local infrastructure that municipalities are struggling to maintain.
Local governments own more than 60% of Canada’s core public infrastructure – roads, bridges, water systems, and transit – yet receive just eight to 10 cents of every tax dollar. The national infrastructure deficit is estimated at $270 billion.
Proposed priorities for the 2025 budget
FCM outlined three priorities for federal action ahead of Budget 2025.
First, the federation wants the Canada Community-Building Fund doubled and indexed to GDP growth, with matching dollars from provinces and territories to support core infrastructure.
Second, FCM is calling for a NextGen infrastructure program to replace the $33 billion Investing in Canada Infrastructure Program, which ends in 2028. The federation noted that the new initiative should include targeted investments in rural, northern and Arctic infrastructure to support local economies and protect Canada’s sovereignty.
Third, the federation wants protection and growth for essential municipal programs that serve vulnerable populations and drive local development. These include Reaching Home, the Interim Housing Assistance Program, and the Canada Public Transit Fund, which FCM describes as vital to building a stronger, more resilient Canada.
“Nation-building starts in communities,” Bligh said. “If we want to build more homes, grow the economy and protect Canadians from climate shocks, we need predictable federal investment to support people through the transitions ahead. Municipalities are ready to deliver, but we need federal investment to match that readiness.”
FCM represents more than 2,000 municipal governments across Canada, covering over 90% of the population. The organization warns that without a sustained federal-municipal partnership, Canadians risk losing out on critical infrastructure improvements essential for housing affordability, economic growth, and climate resilience.
