Infrastructure

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29. Broad Infrastructure Programming
30. Canada Housing Infrastructure Fund
31. Canada Community-Building Fund
32. Support for Transit
33. Chignecto Isthmus
34. Québec Bridge Restoration
35. Infrastructure Programs in Quebec
36. Investing in Canada Infrastructure Program
37. Green and Livable Communities
38. National Infrastructure Assessment and Canadian Infrastructure Council
39. Tariffs Dispute Impacts on Infrastructure

29. Broad Infrastructure Programming

Issue / question

What is the Government of Canada doing to support infrastructure needs across the country?

Suggested response

• This government recognizes the need for infrastructure that supports our economy by enabling the efficient flow of trade and fostering vibrant and dynamic communities across the country.
• We are committed to working with all orders of government and partners to address the evolving infrastructure needs across Canada and to accelerate housing development.
• This includes programs that support transit and mobility, climate resilience, drinking water and wastewater projects from coast-to-coast-to-coast.

Key points

• Canada Community Building Fund $2.5 billion a year.
• Canada Public Transit Fund $3 billion per year starting in 2026-27.
• Green and Inclusive Community Buildings $2 billion over 8 years; 300+ projects approved to date.
• Canada Housing Infrastructure Fund $6 billion over 10 years.
• Disaster Mitigation and Adaptation Fund $3.8 billion over 15 years; 148 projects approved.
• Natural Infrastructure Fund $200 million over four years; 70 projects approved.
• Investing in Canada Infrastructure Program $31 billion (fully allocated).

Background

• Housing, Infrastructure and Communities Canada has delivered an array of programming and funded a wide variety of projects to support the infrastructure needs across the country, with a view to strengthen the economy, help create jobs, support disaster mitigation and adaptation efforts, and improve the quality of life for all Canadians.
• The department's infrastructure program suite supports a wide range of objectives:
  • The Canada Community-Building Fund provides $2.5 billion a year through a predictable transfer of funding to signatories who in turn flow funding to local governments in their jurisdiction to support infrastructure investments in 19 different infrastructure categories.
  • The Canada Public Transit Fund delivers stable funding ($3 billion per year starting in 2026-27) for public transit providing municipalities, transit authorities and other groups with the resources they need to plan and implement key public transit projects over the long term.
  • The Green and Inclusive Community Buildings Program ($2 billion over eight years) supports green and inclusive retrofits, repairs or upgrades of existing public community buildings and the construction of new publicly accessible community, cultural and recreational buildings that serve high-needs, underserved communities across Canada, including Indigenous communities.
  • The Canada Housing Infrastructure Fund supports investments in drinking water, wastewater, stormwater and solid waste infrastructure that enable increased housing development with an investment of $6 billion over 10 years.
  • The Disaster Mitigation and Adaptation Fund ($3.7 billion over 15 years) supports public infrastructure projects designed to mitigate current and future climate-related risks and disasters triggered by natural hazards.
  • The Natural Infrastructure Fund supports natural and hybrid infrastructure projects that use natural or hybrid approaches to protect the natural environment, support healthy and resilient communities, and contribute to economic growth and jobs ($135 million over four years).
  • The Investing in Canada Infrastructure Program provides long-term, stable funding to support environmental sustainability, community development, and access to modern services through an investment of over $33 billion.

30. Canada Housing Infrastructure Fund

Issue / question

How is the Government of Canada helping to build the core infrastructure needed to help neighbourhoods grow?

Suggested response

• This Government is making significant investments in critical infrastructure to directly support the construction of new homes and address the housing crisis.
• The $6 billion Canada Housing Infrastructure Fund supports the creation of new housing supply by accelerating the construction and upgrading of critical infrastructure – including drinking water, wastewater, stormwater, and solid waste systems.
• To receive funding, provinces and territories will have to commit to key actions that increase housing supply by lowering the cost of construction and increasing density. Municipalities and Indigenous communities can also access funding to support pressing infrastructure needs to enable even more housing.

Key points

• Over $6 billion will be invested over 10 years.
• 10 agreements with Provinces and Territories already signed; 25 municipal projects announced in March 2025.
• Applications from municipalities and Indigenous recipients are being reviewed. 

Background

• The Government of Canada put forward in Budget 2024 several key measures to cut red tape, build more homes, and help communities grow. The Budget announced the launch of a new Canada Housing Infrastructure Fund (CHIF) to accelerate the construction and upgrading of housing-enabling infrastructure, which would include drinking water, wastewater, stormwater and solid waste infrastructure to support the construction of more homes.
• The CHIF was launched in fall 2024 to provide $6 billion to municipalities, Indigenous communities and other eligible recipients to support pressing infrastructure needs that will directly create more housing, and to provinces and territories (PTs) through agreements to support long-term PT priorities while advancing federal housing objectives. The CHIF has a direct delivery stream and a provincial and territorial agreement stream.
• PTs will be asked to work with Housing, Infrastructure and Communities Canada (HICC) to implement a series of forward-looking housing enabling measures. Through their agreements:
  • Provinces and municipalities with populations over 30,000 will commit to increase density by adopting zoning for four units as-of-right per lot in all low-density residential areas with municipal servicing (water and sewer);
  • Provinces and municipalities with populations over 300,000 will commit to lowering the cost of construction by freezing development charges for three years as of April 2, 2024;
    • Additionally, alternative measures could be considered at the Government of Canada's discretion to lower the cost of construction.
  • PTs will commit to actions on the 2025 National Building Code, the federal design catalogue, and measures t0 strengthen renting and home buying systems.
• Allocation funding for those PTs that do not conclude an agreement will be transferred to the direct delivery stream.
• Eligible applicants seeking support for pressing drinking water, wastewater, stormwater and solid waste infrastructure needs through the Direct Delivery stream had until March 31, 2025, to apply. In recognition of the unique infrastructure and housing needs and realities in Indigenous communities, Indigenous applicants had until the week of May 19, 2025, to submit their applications. At least 10% of direct delivery funding will be dedicated to Indigenous recipients.

31. Canada Community-Building Fund

ERRATUM

In the Canada Community-Building Fund note, a typographical error has been corrected in the Key points section:

• “Fully allocated as of March 31, 2025, with 6,000 projects approved for over $31 billion.
• The application period for the Territories has just closed and projects continue to be approved.
• Funding continues to flow to recipients as projects get built over the years ahead."

should read

• “Canada Community-Building Fund (CCBF) administrative agreements have been renewed for 10-year terms effective April 1, 2024.
• The 2025-26 program funding is $2.5 billion, transferred to provinces and territories in two equal payments during the year.
• Over the next 10 years (to 2034), CCBF will provide $26.7 billion to Canada's communities.”

This error has been corrected in the English HTML version of the note.

Issue / question

What is the status of the Canada Community-Building Fund?

Suggested response

• The Canada Community-Building Fund provides predictable funding to support local priorities including roads, drinking water and sport and recreation facilities. This year, $2.5 billion will be provided to support projects across 3,700 communities.
• This government has renewed Canada Community-Building Fund agreements with all provinces and territories until 2034, which includes conditions to increase housing supply and the affordability of homes.  
• From 2015 to 2024, this program has provided communities with more than $7.73 billion to help support over 20,000 road projects.

Key points

• Canada Community-Building Fund (CCBF) administrative agreements have been renewed for 10-year terms effective April 1, 2024.
• The 2025-26 program funding is $2.5 billion, transferred to provinces and territories in two equal payments during the year.
• Over the next 10 years (to 2034), CCBF will provide $26.7 billion to Canada's communities.

Background

• Canada Community-Building Fund (CCBF) administrative agreements have been renewed for 10-year terms effective April 1, 2024, and payments for 2024-25 to all signatories are complete.
• Housing is a national challenge and a federal priority. It is being addressed through a suite of federal programs including requiring actions by provinces, territories, and municipalities to increase housing supply and affordability before accessing infrastructure funding. The addition of housing conditionality in the program's requirements will help recipients direct funding toward infrastructure projects that boost housing supply and affordability, where there is an identified need in their communities.
• The investment categories under the program have been expanded. These changes will allow communities to use the CCBF to support housing-related planning activities, such as undertaking housing needs assessments. The disaster mitigation category has also been expanded to be broader and to focus on overall resilience through investments in natural and grey infrastructure. The acquisition of fire trucks has now been made eligible as stand-alone projects under the Fire Halls category.
• The renewed CCBF remains a flexible transfer-based program that allows municipalities to build core infrastructure, with the addition of reporting and communication protocols that will ensure the federal government remains accountable to its citizens.

Key facts about the program

• The CCBF was established in 2005 and was originally designed to provide municipalities with $5 billion in predictable funding over five years. The program was extended and legislated as a permanent source of federal infrastructure funding for municipalities in 2014.
• The renewed CCBF is indexed at 2% per year, to be applied in $100 million increments. Since 2015, the federal government has provided nearly $28.4 billion through the CCBF, including $4.4 billion in top-ups in 2019 and 2021, to help support communities in facing challenges such as the COVID-19 pandemic.
• The 2025-26 program funding is $2.5 billion, transferred to provinces and territories in two equal payments during the year.
• Eligible categories of investment are broad and include public transit, local roads and bridges, drinking water and wastewater infrastructure, community energy systems, culture, recreation, disaster mitigation, fire halls and capacity building.

32. Support for Transit

Issue / question

What is the Government of Canada doing to support transit across the country?

Suggested response

• This government is working with all levels of government and partners to strengthen public transit systems in Canada and to make rural and small communities more accessible.
• The new Canada Public Transit Fund will support communities of all sizes by investing, on average, $3 billion per year to deliver better public transit systems and unlock housing supply where it is needed most.
• We are providing stable 10 year funding to over 200 communities to support upgrades and planning of public transit systems and active transportation in communities, helping Canadians get to work, school, medical appointments, and visit loved ones.

Key points

• Since 2016, over $32 billion for close to 2,500 public transit and active transportation projects across the country.
• Canada Public Transit Fund: average of $3 billion per year beginning in 2026-27. 
• $3.8 billion has been announced for the Baseline Stream as stable 10 year funding in more than 200 communities across Canada.
• On March 21, 2025, an allocation of $1.529 billion - Metro Vancouver (TransLink) over 10 years, subject to signing a Metro Region Agreement
• Zero Emission Transit Fund: 69 projects approved totaling $2.35 billion, Active Transportation Fund: a new capital intake closed in April 2025, a total of 758 applications are under review; Rural Transit Solutions Fund: 270 projects approved (99 planning and 171 capital); 153 announced for  $75,635,106.  A total of 157 capital applications are under review.

Background

• The Canada Public Transit Fund (CPTF) was launched in July 2024 and will provide an average of $3 billion per year for public transit and active transportation infrastructure, beginning in 2026-27. Building on the Permanent Public Transit Program, launched in 2021, it supports the expansion of public transit systems and active transportation networks across Canada.
• To access long-term, predictable funding for public transit through the CPTF, municipalities with a population exceeding 150,000 are required to take action to directly unlock housing supply. This includes measures to:
  • Eliminate all mandatory minimum parking requirements within 800 metres of a high-frequency transit line.
  • Allow high-density housing within 800 metres of a high-frequency transit line.
  • Allow high-density housing within 800 metres of a post-secondary institution.
  • Complete a Housing Needs Assessment for all communities, including those with a population greater than 30,000.
• The CPTF is being delivered across three components: Metro Region Agreement Funding, Baseline Funding, and Targeted Funding.
• The Metro Region Agreement Funding and Baseline Funding components aim to enable long-term planning that links transit investments and actions to increased housing supply and affordability.
• Expressions of Interest (EOI) are required for Baseline and Metro-Region Agreement Funding. The intake for Baseline Funding EOI opened on July 17, 2024, and closed on September 30, 2024. All Baseline Funding applications have been reviewed and applicants have been advised of their applicable allocations.
• Metro Region Agreement funding aims to support the long-term development of public transit infrastructure in large urban areas, including a broad range of projects that many Canadians depend on every day, including major expansion.
• Housing, Infrastructure and Communities Canada continues to engage with provinces, municipalities and transit agencies throughout Canada. The intake is open on a continuous basis as of July 17, 2024. On March 21, 2025, an allocation of $1.529 billion was announced for Metro Vancouver (TransLink) over 10 years, subject to signing a Metro Region Agreement.
• Targeted Funding will continue to support projects that were approved under the Zero Emission Transit Fund, the Active Transportation Fund and the Rural Transit Solutions Fund (RTSF). RTSF and Active Transportation Fund intakes closed in April 2025. During the electoral campaign, the Liberal Party of Canada proposed an additional $250 million for the RTSF.

33. Chignecto Isthmus

Issue / question

What is the federal government doing to protect the Chignecto Isthmus?

Suggested response

• As announced on March 20, 2025, the Government of Canada along with the governments of New Brunswick and Nova Scotia, are moving forward in partnership to build resilient infrastructure along the Chignecto Isthmus that can withstand the effects of a changing climate.
• The Disaster Mitigation and Adaptation Fund supports initiatives that protect Canadians and natural resources, such as the Chignecto Isthmus, from the devastating impacts of climate change.
• This government understands the importance of the Chignecto Isthmus to both New Brunswick and Nova Scotia, as the only road and rail connection between the two provinces. That is why the Government of Canada has committed to investing up to $325 million in this landmark project.

Key points

• Disaster Mitigation Adaptation Fund to invest up to $325 million.
• The New Brunswick and Nova Scotia governments are responsible for the remaining $325 million.

Background

• The Chignecto Isthmus serves as a transportation link, providing the only road and rail connection between New Brunswick and Nova Scotia.
• On March 20, 2025, the governments of Canada, New Brunswick and Nova Scotia announced a project agreement to protect the Chignecto Isthmus from the impacts of climate change.
• The federal government is investing up to $325 million in this project through the Disaster Mitigation and Adaptation Fund (DMAF), while the New Brunswick and Nova Scotia governments together are responsible for the remaining $325 million.
• In September 2023, Senate Bill (S-273) entitled An Act to declare the Chignecto Isthmus Dykeland System and related works to be for the general advantage of Canada was tabled in the Senate and passed in June 2024 but didn't move forward due to prorogation. Now designated as Bill (S-216), this legislation was re-introduced in the new session of Parliament on May 28, 2025.
• On July 19, 2023, Nova Scotia and New Brunswick submitted a joint DMAF application for the project, which aims to raise sections of existing dykes and build new dykes. The eligible project cost is $650 million. Under DMAF program parameters, the federal contribution for a provincial recipient is limited to a maximum contribution of 50% of eligible project costs, which would be $325 million.
• On July 19, 2023, Nova Scotia filed a reference question with the Nova Scotia Court of Appeal seeking the Court's opinion on whether “the infrastructure which protects the interprovincial transportation, trade, and communication links across the Chignecto Isthmus [is] within the exclusive Legislative Authority of the Parliament of Canada”. On September 21, 2023, Canada, New Brunswick, and Prince Edward Island were granted intervener status by the Nova Scotia Court of Appeal.
• The Nova Scotia Court of Appeal has held case management meetings since November 2023. In March 2025, the Court decided that, although it remains reserved on the preliminary question, it will hear the matter on the merits. A hearing was held on May 20 and 21, 2025. The court did not communicate the date on which the decision will be delivered.

34. Québec Bridge Restoration

Issue / question

Update on the Quebec Bridge restoration

Suggested response

• In November 2024, the federal government finalized the acquisition of the Québec Bridge from the Canadian National Railway, delivering on a long-standing commitment to ensure its long-term preservation and renewal.
• Over the next 25 years, this government will invest over $1 billion to rehabilitate the Québec Bridge, with the Jacques Cartier and Champlain Bridges Incorporated (JCCBI) leading the rehabilitation project.
• This investment will extend the bridge's lifespan, benefit residents of the greater Québec City area while preserving its historical, cultural, and economic value for future generations.

Background

• Built in 1917, the Québec Bridge is a strategic and historical asset that connects the City of Québec and Lévis. This infrastructure enables the movement of people and goods between the shores of the Saint Lawrence River (33,000 cars, 10 VIA Rail passenger trains and three freight trains every day).
• Since the property of the Bridge was transferred from Canada to the Canadian National (CN) Railway in 1995, the appearance of the bridge has deteriorated and the federal government has faced local pressure to take on its rehabilitation.
• On May 15, 2024, the federal government announced the conclusion of a retrocession agreement with CN to transfer ownership of the Québec Bridge back to the Government of Canada. As part of this agreement:
  • CN has agreed to pay the Government of Canada user fees for the lifetime of the bridge and to retain ownership and responsibility for the rail deck, including all associated costs; and
  • The Government of Canada has also committed to taking over the current terms and conditions of the agreement between CN and the Government of Quebec regarding the use, management, and maintenance of the road deck by the Government of Quebec.
• On November 12, 2024, Housing, Infrastructure and Communities Canada (HICC) signed the final agreement with CN, formalizing the Government of Canada's acquisition of the Québec Bridge. On the same date, HICC transferred the bridge's property rights to The Jacques Cartier and Champlain Bridges Incorporated (JCCBI), which became the owner of the bridge and responsible for its management and rehabilitation. With a strong track record overseeing key Montréal-area assets like the Jacques Cartier and Honoré-Mercier bridges, JCCBI is well equipped to deliver this important work.
• JCCBI will implement a rehabilitation program that maintains the long-term viability of this strategic corridor and improves its visual appearance through sound management of public funds.
• The Government of Canada will invest over $1 billion over the next 25 years in the rehabilitation program that will include steel repair and replacement work and a painting program to protect bridge elements that are more prone to active corrosion or are difficult to replace, which will improve the overall visual appearance of the bridge.

35. Infrastructure Programs in Quebec

Issue / question

How is the Government of Canada supporting infrastructure in Quebec?

Suggested response

• This government continues to work together with the Government of Quebec to deliver funding to ensure that Quebec benefits from infrastructure programs that help build strong, sustainable, affordable and connected communities.
• This government will build on the  $4.1 billion in contributions already  provided to shared infrastructure priorities in Quebec, such as water and wastewater, transit, resilience, and culture and recreation.
• On March 22, 2025, an additional federal contribution of more than $1.1 billion was announced for the Québec City tramway and the Montréal Metro Blue line extension projects.

Key points

Contributions to shared infrastructure priorities in QC include: 

• Zero Emission Transit Fund - $400 million – 12 projects,
• Active Transportation Fund - $33 million – 62 projects,
• Green and Inclusive Community Buildings - over $183 million – 31 projects,
• Disaster Mitigation and Adaptation Fund - nearly $307 million – 14 projects,
• Canada Community-Building Fund over $2.8 billion over the next five years,
• March 2025 an additional $1.1 billion contribution was announced (under Investing in Canada Infrastructure Program) to complete the Québec City tramway and the Montréal Metro Blue line extension projects.

Background

• In the Province of Quebec, theAct respecting the Ministère du Conseil exécutif(M-30) requires municipalities and public organizations, among others, wishing to receive funding from the Government of Canada to obtain prior consent from the Secrétariat québécois aux relations canadiennes (SQRC). As a result, Housing, Infrastructure and Communities Canada (HICC) must conclude an agreement with the SQRC to fully implement its programs in the province.
• In June 2024, the Government of Canada and the Government of Quebec announced the successful renewal of the Canada Community-Building Fund agreement that will provide over $2.8 billion over the next five years to communities in Quebec for a broad range of infrastructure projects that will meet the needs of Quebec's communities.
• Under the Investing in Canada Infrastructure Program (ICIP), HICC has approved a number of major transit projects to advance key priorities for Quebec and Canada, including in March 2025, an additional federal contribution of more than $1.1 billion to help complete the Québec City tramway and the Montréal Metro Blue line extension projects:
• The Québec City Tramway involves the construction of a 19 km 100% electric tramway line, including approximately 1.9 km underground. A federal contribution of over $1.1 billion had already been approved in July 2019. In March 2025, the Government of Canada increased its contribution to the project by $332.3 million for a total federal contribution of over $1.4 billion.
• The Montréal Metro Blue Line extension projects include five new metro stations in a tunnel spanning some 6 km, two bus terminals, an underground pedestrian tunnel, a mezzanine pedestrian link and various operational infrastructure elements. The federal government had initially committed to contribute more than $1.3 billion to the Blue line extension project, however, increased its contribution to the project by more than $650 million to just over $1.9 billion. In addition, the federal government also approved an investment of $202.8 million in the train control system project, which will replace the current fixed block train control system with a technology-based system for the entire Montréal Metro Blue line, including its extension.
• Under the Zero Emission Transit Fund (ZETF), 12 projects have been announced to date in Quebec totalling $400 million in federal contribution. Notably, 11 of these projects are dedicated to the electrification of transit bus garages throughout the province.
• Under the Active Transportation Fund, 62 projects have been announced to date in Quebec, totalling $33 million in federal contribution.
• The Green and Inclusive Community Buildings program has announced funding for 31 projects in Quebec for a total federal contribution of over $183 million.
• The Disaster Mitigation Adaptation Fund has announced funding for 14 projects in Quebec for a total federal contribution of nearly $307 million.
• The direct delivery stream of the Canada Housing Infrastructure Fund (CHIF) is now closed for all applicants. It closed its general intake on March 31, 2025 but remained open until May 20, 2025 for eligible Indigenous applicants in Québec, to address pressing infrastructure needs and enable more housing. HICC is negotiating a bilateral CHIF agreement for Quebec to access $955 million to improve and expand housing enabling infrastructure.

36. Investing in Canada Infrastructure Program

Issue / question

How much funding has been allocated under the Investing in Canada Infrastructure Program?

Suggested response

• Through the Investing in Canada Infrastructure Program, this government is delivering more than $33 billion in funding, over 10 years, through bilateral agreements with each of the provinces and territories.
• As of March 31, 2025, all provincial and territorial funding has been allocated, totalling 6,000 projects and over $31 billion in federal contributions.
• These critical investments across Canada include major transit projects, water treatment facilities, Indigenous wellness centres and improvements to community buildings.

Key points

• Fully allocated as of March 31, 2025, with 6,000 projects approved for over $31 billion.
• The application period for the Territories has just closed and projects continue to be approved. 
• Funding continues to flow to recipients as projects get built over the years ahead.

Background

• The Investing in Canada Infrastructure Program (ICIP) is an allocation-based program. Provinces and territories, in consultation with municipalities and Indigenous communities, are responsible for identifying, prioritizing, submitting projects, and flowing funds to eligible ultimate recipients.
• Managed through Integrated Bilateral Agreements, the ICIP was originally divided into four funding streams: Public Transit ($20.1 billion); Green Infrastructure ($9.2 billion); Community, Culture and Recreation Infrastructure ($1.3 billion); and Rural and Northern Communities Infrastructure ($2 billion + $400 million for the Arctic Energy Fund).
• Examples of eligible projects include:
  • Public Transit: New Light Rail Transit systems; electric bus purchases; and removing barriers by providing wheelchair ramps at transit stations.
  • Green: Renewable energy storage; strategic interties; preservation of natural wetland systems; rehabilitation of climate resilient infrastructure; water main and sewer replacement; and recycling facilities.
  • Community, Culture and Recreation: Community centres; art galleries; community recreation and trail facilities; and community service hubs.
  • Rural and Northern Communities: Greenhouses; community freezers; short sea shipping wharves; and broadband projects.
  • COVID-19 Resilience Stream: Upgrades to municipal and community buildings, hospitals, or schools; temporary COVID-19 testing facilities; active transportation pathways; and ventilation improvement in public buildings.

37. Green and Livable Communities

Issue / question

What is the federal government doing to promote green and livable communities in Canada?

Suggested response

• This government is committed to supporting healthy and sustainable communities by investing in projects that provide Canadians with access to affordable housing that is well-served by green infrastructure.
• The Green and Inclusive Community Buildings Program invests building upgrades and new construction to improve the places Canadians live and gather.
• This government is also investing in projects that add green spaces to existing urban areas through the Natural Infrastructure Fund.

Key points

• $2 billion in funding for the Green and Inclusive Community Buildings Program.
• 318 projects for more than $1.65 billion approved and announced as of April 2025.
• Of this, more than $514 million for Indigenous recipients.

Background

• The Green and Inclusive Community Buildings Program (GICB) is investing $1.5 billion in funding directly to communities over five years (2021-26). It supports communities in making green and accessible retrofits, repairs or upgrades to existing public community buildings, and constructing new publicly accessible community buildings that serve high-needs, underserved communities, while advancing Canada's climate goals.
• Budget 2024 committed an additional $500 million to support GICB projects until March 2029, which will ensure that more community facilities are inclusive and accessible, and resilient to climate change.
• The program is community-based, providing direct-to-recipient funding. Eligible recipients include provincial and territorial governments, municipal governments, Indigenous communities and organizations, and not-for-profit organizations. GICB is a national funding envelope with no provincial or territorial allocations.
• As of April 2025, 318 GICB projects with federal funding of more than $1.65 billion have been approved and announced. The program has been successful in supporting Indigenous communities and organizations – more than $514 million has been announced for projects submitted by Indigenous communities and organizations.
• The Canada Housing Infrastructure Fund supports livable and thriving communities in Canada by ensuring access to clean drinking water, in addition to funding critical housing-enabling infrastructure such as wastewater, stormwater and solid-waste.
• The Natural Infrastructure Fund (NIF) provides funding for natural and hybrid infrastructure projects such as urban forests, green roofs, rain gardens, and living dykes that are primarily for public benefit in communities across Canada, including both built and natural assets.
• Projects funded through the NIF will create, expand, or enhance communities' access to nature, furthering resilience to climate change, improving environmental quality, and protecting biodiversity.
• Under the Investing in Canada Infrastructure Program's Bilateral Agreements, the Government of Canada is providing funding for public transit, green infrastructure, community, culture and recreational infrastructure, and rural and northern infrastructure projects. Examples of eligible projects to support carbon neutrality and resilience include new Light Rail Transit systems; electric bus purchases; renewable energy storage; strategic interties; preservation of natural wetland systems; rehabilitation of climate resilient infrastructure; and recycling facilities.

38. National Infrastructure Assessment and Canadian Infrastructure Council

Issue / question

When will the Canadian Infrastructure Council release the national infrastructure assessment?

Suggested response

• The Canadian Infrastructure Council was formed in fall 2024 to deliver Canada's first-ever National Infrastructure Assessment (NIA) to support communities toward building the infrastructure needed to alleviate housing pressures and support the growth of sustainable, resilient and inclusive communities.
• The Council was tasked with focusing the first NIA on the core infrastructure needed to support the development of housing over the long-term, including: water and wastewater; public transit and active transportation; and, waste management.
• The Council has heard from all orders of government, industry, academia, Indigenous partners and other stakeholders.

Key point

• Canada's first National Infrastructure Assessment report is expected to be published in the coming months.

Background

• The Canadian Infrastructure Council was established in December 2024 and includes 11 experts from infrastructure-related fields from across the country.
• Members are appointed by the Minister of Housing, Infrastructure and Communities to serve on a part-time basis until March 31, 2027, and include:
• Jennifer Angel (Chair) - Chief Executive Officer, Evergreen Canada
• Peter Weltman (Vice-Chair) - Director, Technomics Inc., Former Financial Accountability Officer of Ontario
• Sara Brown - Chief Executive Officer, Northwest Territories Association of Communities
• James Dunn - Associate Dean, Research, Faculty of Social Sciences, McMaster University, Director, Canadian Housing Evidence Collaborative
• Joanna Eyquem - Vice-President, Climate Risk Institute
• Graham Gagnon – Associate Vice-President of Research, Faculty of Engineering, Director for the Centre for Water Resources Studies, Dalhousie University
• John McKendrick - Former Executive Vice President, Infrastructure Ontario
• Doug McNeil - Former Chief Administrative Officer, City of Winnipeg and Former Deputy Minister, Manitoba Infrastructure and Transportation
• Catherine Morency - Professor of Transportation, Polytechnique Montréal
• Ren Thomas - Associate Professor, School of Planning, Dalhousie University
• Judy Whiteduck - Former Senior Director, Economic Development and Infrastructure and the Rights and Justice Branch, Assembly of First Nations
• Through a letter of expectation provided by the Minister of Housing, Infrastructure and Communities in fall 2024, the Council was asked to focus the first national infrastructure assessment on the core public infrastructure needed to support more housing, specifically: water and wastewater, public transit and active transportation, and solid waste management.
• The Council is engaging and seeking feedback from industry experts, academics, Indigenous communities, businesses, citizens and all levels of government to inform its work. This included a public Call for Input to gather solutions and best practices.

39. Tariffs Dispute Impacts on Infrastructure

Issue / question

How have the United States tariffs impacted infrastructure projects, including non-residential and homebuilding?

Suggested response

• Uncertainty, policy reversals, and trade tensions have created volatility in key industries such as construction, manufacturing, and energy. This instability, marked by fluctuating costs, disrupted supply chains, and declining business confidence may also lead to job losses within the construction industry.
• Tariffs and retaliatory measures risk destabilizing Canada's housing market by weakening demand and constraining supply through higher costs and labour shortages.
• Housing, Infrastructure, Communities Canada is working with all partners, including housing and construction industry stakeholders and portfolio partners across provinces and territories, to monitor the impact of tariffs on these sectors.

Key point

• On June 3, 2025, the US doubled steel and aluminum import tariffs from 25% to 50%.
• There are currently 345,000 active residential projects underway in Canada that will likely be negatively impacted by increased US tariffs.

Background

• On June 3, 2025, the United States (U.S.) administration signed an executive order doubling tariffs on steel and aluminum imports from 25% to 50%.
  • Previous to these new tariffs (March 4, 2025) the U.S. imposed a 25% tariff on all Canadian imports and a 10% tariff on Canadian energy exports. In response, Canada imposed 25% retaliatory tariffs on $30 billion in U.S. goods, which remain in effect for non Canada-United States-Mexico Agreement (CUSMA) compliant exports.
  • As of March 7, 2025 the U.S. agreed that CUSMA-compliant Canadian exports were temporarily exempt until April 2, 2025.
  • On March 12, 2025, the U.S. implemented a 25% tariff on all imported steel and aluminum, including from Canada. Canada responded on March 14, 2025, with 25% tariffs on $29.8 billion in U.S. goods.
  • On April 3, 2025, the U.S. imposed 25% tariffs on Canadian automobiles. Canada responded on April 9, 2025, with matching 25% tariffs on non-CUSMA-compliant U.S. vehicles and the non-Canadian/Mexican content in CUSMA-compliant vehicles.
• The imposition of 50% tariffs on imported steel and aluminum to the U.S. is causing significant concern from across Canada's industries, in particular homebuilders, the automotive sector, and the construction sector.
• The Canadian steel industry has signaled that the U.S. market will be effectively closed to Canadian exports at the new, enhanced rate.
• Tariffs duties are typically required to be paid 7-10 days upon delivery – many Canadian firms have expressed that they will experience cash flow issues as a result.
• In some cases, Canadian firms – in particular in central Canada - have begun replacing U.S. supplied steel with Canadian, however, transportation costs remain elevated.
• Firms are also reporting declining sales orders for large purchases – as tariffs have been incorporated into input costs, raising final product prices.
• The Canadian residential construction sector is a net importer of homebuilding products which will experience raising homebuilding costs and disrupted supply chains. Homebuilders are already face challenges sourcing U.S.-made products and replacement parts for equipment, windows, toilets, and doors – which may be exacerbated given the new tariffs.
• There are currently over 345,000 active residential projects underway across the country - with many multi-story projects requiring significant steel and aluminum components, mainly sourced from the U.S. such as aluminum studs.
• The June 4, 2025, Bank of Canada decision to hold rates – noted housing activity was down, driven by a sharp contraction in resales. Previous rate decisions highlighted declining residential investment since the start of the trade dispute with the U.S. – despite rates remaining lower to what they were 12 months ago.
• Tariffs will have a two-fold inflationary impact on Canada: Initial U.S. tariffs increase costs for Canadian raw materials processed in the U.S. and reimported, while Canadian retaliatory tariffs raise prices on all U.S. imports, regardless of supply chain origin. Developers and builders initially absorb these costs but ultimately pass them on to consumers. Aluminum and steel, which cross the border multiple times during manufacturing, amplifying the inflationary effects on Canada's domestic economy.
• A decline in exports to the U.S. has weakened the Canadian dollar, driving up import prices alongside retaliatory tariffs. This increases costs for construction materials and equipment, straining fixed-price contracts and future projects. A weaker Canadian dollar may increase export competitiveness, which could help attract new markets as an alternative to U.S. demand.
• Tariffs will have the largest impacts on communities with heavy reliance on U.S. trade: Saint John and Calgary are most exposed due to their dependence on energy exports and limited access to alternative trade routes. Windsor, Toronto, Hamilton, and parts of Quebec, are also vulnerable given their reliance on cross-border trade in steel, aluminum, and other materials.
• Tariffs will impact both current and upcoming infrastructure projects, including those under Public-Private Partnership (P3) models. Bidder interest is declining as cost estimates rise, and risk premiums increase due to pricing uncertainty. Fixed-price contracts are especially at risk, and ambiguities in contracts regarding tariffs and global events could trigger costly disputes and strain public-private relationships. Canada's pipeline of over 81 P3 projects valued at more than $49 billion is exposed to inflation, borrowing costs, and trade-related supply disruptions, raising risks to achieving financial close and delivery timelines.
• The Department of Finance is leading Canada's federal response to U.S. tariffs, overseeing the retaliatory measures on targeted U.S. goods. They are responsible for programs to support Canadian businesses affected by the U.S. tariffs and associated countermeasures, including:
• The remission process for certain countermeasure tariffs announced by Canada;
• Deferring GST/HST remittances and corporate tax payments from April 2 to June 30, 2025, with interest waived on required payments and existing balances during this period;
• The Large Enterprise Tariff Loan (LETL) program, a new initiative offers financing to large Canadian businesses who face challenges accessing traditional sources of market financing to maintain operations and employment; and,
• Employment Insurance (EI) Work-Sharing Program, a temporary one year program helps employers avoid layoffs by allowing employees to share available work and receive EI benefits.
• Global Affairs Canada announced a new hotline and additional resources from the Trade Commissioner Service to help Canadian exporters apply for the CUSMA compliance in order to access tariff-free treatment.
• Housing, Infrastructure and Communities Canada (HICC) also continues to work closely with federal partners, provinces and territories (PTs), and industry stakeholders as part of ongoing efforts to monitor and support coordinated responses.
• In February 2025, HICC convened multiple ministerial roundtables with the Canadian residential construction sector. A What We Heard Report summarized insights on key tariff-related barriers to project viability, and opportunities for support through the National Housing Strategy and Canada's Housing Plan.
• HICC has established a departmental working group on the Impact of U.S. Tariffs and Retaliatory Measures on Canadian Infrastructure. The group is working to develop a coordinated departmental approach to policy development and to ensure that the Minister and senior officials remain informed of developments across federal departments, PTs, and industry partners.
• HICC launched the Impact and Implications of Tariffs and Counter-Tariffs on the Non-Residential Construction Sector survey. This has been shared with all PTs and will help gather more comprehensive regional perspectives on both challenges and potential opportunities.

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