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Infrastructure

  1. Build Communities Strong Fund
  2. Broad Infrastructure Programming
  3. Infrastructure Programs in Quebec
  4. Canada Housing Infrastructure Fund
  5. Support for Transit
  6. Climate Resilient Homes and Infrastructure

Build Communities Strong Fund

Issue / question

Details on the Build Communities Strong Fund, announced in Budget 2025.

Suggested response

  • This government recognizes the need to build – not only major projects, but also the roads, water systems, transit systems, and housing-enabling infrastructure that support growing communities.
  • Announced in Budget 2025, the $51 billion Build Communities Strong Fund (BCSF) will invest in infrastructure projects across communities to drive economic growth, improve productivity, and enhance resilience.
  • The BCSF will align with broader government commitments, such as introducing the Buy Canadian Policy, reducing development charges, and supporting Canadian workers. It will also mobilize private investment, including by leveraging the Canada Infrastructure Bank as a key partner.
  • The government will work closely with provinces, territories, municipalities and Indigenous partners in the coming weeks and months to ensure that funding for those projects will address our shared priorities.

Background

  • Budget 2025 announced a new $51 billion Build Communities Strong Fund (BCSF), for public infrastructure projects that drive economic growth, improve productivity, enhance resilience and strengthen communities.
  • BCSF will have three streams:
    • Provincial and Territorial Stream ($17.2 billion / 10 years): Supports water/wastewater, transit, roads, post-secondary education infrastructure, and health-related infrastructure ($5 billion carve-out) through bilateral agreements.
    • Direct Delivery Stream ($6 billion / 10 years): Supports regionally significant projects, large building retrofits, climate adaptation projects, and community infrastructure.
    • Community Stream ($27.8 billion / 10 years): Publicly rebranded Canada Community-Building Fund.
  • As part of BCSF, Budget 2025 calls for investment in regionally significant projects, which could be smaller projects that complement ones of national significance that are not well suited for support by the Major Projects Office.
  • BCSF will be coordinated with other initiatives related to trade infrastructure, defense, and projects of national significance and assessments underway by the Major Projects Office. The federal government will also establish governance mechanisms to refer projects to the BCSF, where appropriate.
  • Federal project selection will consider factors such as the use of unionized labour and Community Employment Benefits agreements.
  • In advance of formal negotiations with provinces and territories, the federal government will be reaching out to stakeholders (provinces, territories, municipalities, Indigenous partners) during winter 2026 (exact timing to be confirmed) to engage them on the Fund and understand their concerns and priorities.

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 and fosters 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.
  • Our government offers an array of programs that support key infrastructure in the areas of transit and mobility, climate resilience, drinking water and wastewater projects from coast-to-coast-to-coast.
  • Budget 2025 announced this government’s intention to launch the new Build Communities Strong Fund, which would provide $51 billion over 10 years, starting in 2026-27, to support a wide range of infrastructure projects and help our local communities build Canada strong.

Background

  • Housing, Infrastructure and Communities Canada (HICC) delivers an array of programming and funds a wide variety of projects to support 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 suite of infrastructure programs supports a wide range of objectives:
  • As announced in Budget 2025:
    • The Build Communities Strong Fund will provide $51 billion over 10 years, starting in 2026-27, and $3 billion per year ongoing in new and existing funding. This initiative would support a wide range of infrastructure projects and help local communities build Canada strong. Funding would be delivered through three program streams, the Provincial and Territorial Stream, the Direct Delivery Stream, and the Community Stream.
    • The Canada Community-Building Fund will become the Community Stream of the Build Communities Strong Fund. This stream would continue to provide $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.
  • Additional HICC Infrastructure Programs include:
    • The Canada Public Transit Fund delivers stable funding (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 Canada Housing Infrastructure Fund supports investments in drinking water, wastewater, stormwater and solid waste infrastructure that enable increased housing development.
    • The Green and Inclusive Community Buildings program supports retrofits, repairs or upgrades of existing publicly accessible community buildings and the construction of new publicly accessible community, cultural and recreational buildings for underserved and high-needs communities across Canada, including Indigenous communities.
    • The Disaster Mitigation and Adaptation Fund supports public infrastructure projects designed to mitigate current and future climate-related risks and disasters triggered by natural hazards.
    • The Natural Infrastructure Fund supports 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.
    • The Investing in Canada Infrastructure Program provides long-term, stable funding to support environmental sustainability, community development, and access to modern services.

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 build strong, sustainable, affordable and connected communities. Since announcing the Canada Public Transit Fund and the Canada Housing Infrastructure Fund in 2024, the federal government has been working to reach an agreement with Quebec to extend this funding to communities across the province.
  • In June 2024, the Governments of Canada and Quebec announced the renewal of their Canada Community-Building Fund agreement, which will provide more than $2.8 billion over the next five years to Quebec communities for a wide range of critical infrastructure that will meet their needs.
  • 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.

Background

  • In Quebec, the Act respecting the Ministère du Conseil exécutif (M30) requires municipalities and public organizations, among others, wishing to receive funding from the Government of Canada to obtain prior consent from the Government of Quebec. As such, Housing, Infrastructure and Communities Canada (HICC) must conclude an agreement with Quebec to fully implement its programs.
  • Under the Investing in Canada Infrastructure Program, HICC has announced several major public transit projects to advance the priorities of Quebec and Canada:
    • Montréal Metro Blue Line Extension: $1.306 billion allocated in 2019, with an additional $650 million announced in March 2025 (total: $1.956 billion).
    • Québec City Tramway: $1.1 billion allocated in 2019, with an additional $332.3 million announced in March 2025 (total: $1.44 billion).
  • As part of its investments in sustainable transportation, the Government of Canada has announced 12 projects in Quebec totaling $400 million under the Zero Emission Transit Fund, including 11 dedicated to the electrification of transit bus garages, as well as 62 projects under the Active Transportation Fund, representing a federal contribution of $33 million.
  • The Green and Inclusive Community Buildings program and the Disaster Mitigation and Adaptation Fund have announced, respectively, 31 and 14 projects in Quebec, with a federal contribution totaling over $183 million and nearly $307 million.
  • The Canada Public Transit Fund, launching in 2026, will provide an average of $3 billion per year in stable, permanent, and predictable funding for transit and active transportation in communities across the country. Discussions are ongoing with Quebec to reach an agreement that will enable these investments in the province.
  • The Direct Delivery stream of the Canada Housing Infrastructure Fund supports pressing water, wastewater, stormwater and solid waste infrastructure projects that in turn enable more housing. Federal funding is delivered via a contribution agreement directly to eligible recipients, including municipalities and Indigenous communities. On September 15, 2025, Canada announced up to $128.3 million through this stream, alongside $192.5 million from the City of Montréal, to launch the Quartier Namur-Hippodrome project.

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 Canada Housing Infrastructure Fund is investing up to $6 billion for the construction and upgrading of infrastructure – including drinking water, wastewater, stormwater, and solid waste systems – that in turn supports the creation of new homes.
  • Funding will be provided to provinces and territories on the condition that they 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.
  • Under the agreements with provinces and territories, 20% of the allocation is to be directed to projects in rural, northern, or Indigenous communities.

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 relating to drinking water, wastewater, stormwater and solid waste infrastructure systems to support the construction of more homes.
  • The CHIF was launched in fall 2024 to provide up to $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.
  • To date, PT agreements have been signed with 10 provinces and territories, with two in active negotiations.
  • 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 could apply to the Direct Delivery stream until March 31, 2025. 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.
  • The CHIF direct delivery intakes are now closed and received hundreds of applications from across the country. This speaks to the great need for critical water, wastewater, stormwater and solid waste infrastructure all across Canada.
  • Funding results will be communicated in writing directly to applicants, once decisions are made.

Support for Transit

Issue / question

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

Suggested response

  • All orders of government are working together with partners to strengthen public transit systems in Canada and to make rural and small communities more accessible.
  • The 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.
  • This government is 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.

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.
  • Baseline Funding will provide stable, predictable support for communities with existing transit systems. To date, $3.85 billion in 10-year allocations has been announced for 80 recipients - this funding will support routine capital investments, expansion, and state of good repair projects in communities across the country.
  • 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 Metro Region Agreements stream intake is open on a continuous basis as of July 17, 2024. On March 21, 2025, an allocation of up to $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 under the Zero Emission Transit Fund, the Active Transportation Fund (ATF) and the Rural Transit Solutions Fund (RTSF). RTSF and ATF intakes closed in April 2025. During the electoral campaign, the Liberal Party of Canada proposed an additional $250 million for the RTSF.

Climate Resilient Homes and Infrastructure

Issue / question

What is the Government of Canada doing to address the impacts of climate change on housing and infrastructure?

Suggested response

  • Every year, climate-related events like floods and wildfires are damaging housing and critical infrastructure, displacing communities, and costing billions in damages.
  • This government has committed approximately $3.74 billion in protective infrastructure projects to help climate-proof Canadian communities through the Disaster Mitigation and Adaptation Fund.
  • Infrastructure projects that seek government funding are required to demonstrate they have assessed and will address climate risks in their proposals. This helps make households safer, communities more resilient, and economies more stable.
  • This government will continue to partner with industry to ensure that housing and infrastructure is built to last – whether through climate-informed codes, standards and guidance developed with federal partners to factor climate risks into housing and infrastructure design and builds, or tools to help guide the development of infrastructure projects that are resilient to climate change impacts.

Background

  • Disasters, extreme weather, and changing climate conditions across the country present a significant and increasing threat to household safety, affordability, and insurability. In 2024 alone, there was a record-breaking $8.5 billion in insurable claims, with an additional $24 billion in uninsurable damage due to extreme events – costs that are passed on to homeowners, businesses, and governments.
  • Proactive investments and building diligently are critical to long-term affordability as climate-informed siting, design, and materials safeguard public investment. This includes selecting suitable land (e.g., avoiding floodplains, wildfire zones) and using climate-resilient design to reduce risk (e.g., roof fasteners, and corrosion- and decay-resistant materials).
  • Housing, Infrastructure and Communities Canada (HICC) advances climate resilient housing and infrastructure through key initiatives:
    • Resilience-focused funding programs: The Disaster Mitigation and Adaptation Fund (over $3 billion for 122 projects) and other resilience-enabling funding programs (e.g., Natural Infrastructure Fund, Investing in Canada Infrastructure Program) are fully subscribed, leaving a funding gap.
    • Scalable resilience requirements: HICC is demonstrating diligence as an investor by requiring, through its newest infrastructure programs, to consider how climate change impacts could affect their project, preserving the functionality and value of federal investments.
    • Climate-informed codes, standards and guidance: HICC, in partnership with the Standards Council of Canada and the National Research Council Canada, has been developing the necessary research, guidelines, standards, and codes to factor climate risks into housing and infrastructure design and builds.
    • Targeted supports and services to increase uptake: Climate Toolkit for Housing and Infrastructure offers an open-access online platform, a roster of experts, and a help desk that has responded to over 250 inquiries so far to help infrastructure owners and investors develop projects that are resilient to climate change impacts.
  • HICC’s approach to resilience is guided by Canada’s National Adaptation Strategy, in a targeted effort to align federal policy direction across pre- and post-disaster investments. Since April 2025, Public Safety Canada’s modernized federal Disaster Financial Assistance Arrangements limit post-disaster funding support for new or extensively rebuilt assets in hazardous areas if not appropriately mitigated. New HICC-funded assets could be ineligible and at risk if not aligned.
  • Moving forward, HICC will continue to explore opportunities to incorporate resilience considerations in housing and infrastructure, particularly in areas across Canada that are most impacted by climate events, including through Build Canada Homes that will look to integrate these best practices in the way it supports housing supply in Canada.

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