Cost-Sharing:
Supporting more projects with every dollar

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What is it?

Cost-sharing leverages greater funding from other sources, including provinces, territories and municipalities. Through cost-sharing, the Government of Canada is able to increase the number of federally funded projects.

Why is it important?

Provinces, territories and municipalities own over 95 per cent of public infrastructure in Canada. The Government of Canada respects their jurisdiction over infrastructure. That being said, we understand the importance of investing in infrastructure that supports Canada's economic growth, job creation and long-term prosperity.

Through cost-sharing, the funding provided by the federal government towards infrastructure projects is matched by other partners, such as provinces, territories, municipalities or the private sector. This means that more projects can be funded across the country and that federal dollars are leveraged in the most cost-effective way for taxpayers.

There are three levels of government and the private sector who can contribute to infrastructure projects. The Government of Canada will continue to do its part by providing up to one-third of the funding for most projects.

How does it work?

Federal government cost-sharing works differently for projects in provinces than it does for projects in the territories.

Under the 2014 New Building Canada Fund, for projects located in the provinces, the maximum federal contribution from all sources will be up to one-third (33.33 per cent) of the total eligible costs of a project, with the following exceptions:

• For projects in the highways and roads and disaster mitigation categories where the asset is provincially-owned, the maximum federal contribution from all sources will be up to 50 per cent of the total eligible costs.
• For projects in the public transit category, the maximum federal contribution from all sources will be up to 50 per cent of the total eligible costs.
• For projects where the recipient is from the for-profit private sector, the maximum federal contribution from all sources will be up to 25 per cent of the total eligible costs.

For projects located in the territories, the maximum federal contribution from all sources will be up to three-quarters (75 per cent) of the total eligible costs of a project, with the following exception:

• For all projects where the recipient is from the for-profit private sector, the maximum federal contribution from all sources will be up to 25 per cent of the total eligible costs.