Housing, Infrastructure and Communities Canada 2026-27 Departmental Plan

All Canadians deserve a safe and affordable place to call home. Families are struggling to afford housing, and vulnerable populations are disproportionally impacted.

To help make housing more attainable and affordable for Canadians, a significant increase in the supply of all types of housing, including market housing, social and affordable housing and transitional and supportive housing, is required. Build Canada Homes (BCH) was launched on September 14, 2025 as a Special Operating Agency (SOA) housed temporarily within HICC until it transitions to a standalone federal entity. BCH will leverage public lands, offer flexible financial incentives, attract private capital, facilitate large portfolio projects, and support modern manufacturers to build the homes that Canada needs.

BCH will grow the supply of affordable and community housing by working with mission-driven organizations whose core purpose is to advance social, community, or equity-focused goals. These include non-profits, co-operatives, Indigenous housing providers, and organizations supporting women, people with disabilities, newcomers, and those in need of supportive and transitional housing.

BCH will also work closely with community partners and the Canada Lands Company (CLC) to drive a more productive and innovative homebuilding sector, and support the Government of Canada’s Buy Canadian Policy by prioritizing Canadian materials, strengthening domestic supply chains, and creating jobs.

In 2026-27, BCH will continue to make investments, build partnerships and advance innovation, while laying the groundwork for a transition from an SOA to an arm’s length organization. In particular, the organization will deliver first investments, including building 4,000 Direct Build homes on federal lands in Ottawa, Toronto, Winnipeg, Edmonton, Longueuil and Dartmouth, deploying $1 billion to build supportive and transitional homes for those experiencing or at risk of homelessness, and advancing partnerships to deliver new homes (e.g., agreement with Nunavut for 750 homes).

In 2026-27, HICC will also continue to lead robust, proactive engagement to inform the renewal of the National Housing Strategy to ensure that the design and delivery of federal housing policies and programs meet the needs of Canadians. While BCH will support the critical need to increase the supply of affordable housing across the country, providing advice on the renewal of other important elements of the National Housing Strategy that are scheduled to sunset in March 2028 will be a priority. These include the Canada Housing Benefit and support for existing social housing through provincial and territorial bilateral agreements, as well as critical homelessness supports through Reaching Home.

The Department intends to undertake extensive stakeholder engagement during 2026-27 to inform the renewal of the National Housing Strategy, including by leveraging the FPT Ministerial Forum on Housing and homelessness. Shared priorities amongst PTs, municipalities and indigenous partners include increasing housing supply, with a focus on affordable housing; supporting Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada as they work with First Nations, Inuit and Métis to develop an indigenous housing strategy; and enhancing the speed and efficiency in delivering housing by scaling up modern methods of construction through accelerating the adoption of modular, prefabricated, and other innovative technologies. Enhanced engagement and intelligence gathering will ensure that housing policy and program design reflects regional realities, emerging market conditions and sector expertise, ultimately strengthening the Department’s capacity to improve housing in communities across Canada.

Under the National Housing Strategy Act, the National Housing Council provides advice to the Minister of Housing and Infrastructure based on analysis and engagement with the public and subject-matter experts, ensuring participation and inclusion in Canada’s housing policy development process. In 2026–27, the Council will focus its advice on a series of papers supporting the renewal of Canada’s National Housing Strategy, with an emphasis on improving housing outcomes, preventing homelessness, and fostering inclusive and complete communities. This year, the Council will also conduct a review focused on inaccessible housing.

The Department is also committed to ensuring that federal infrastructure investments help improve housing supply and affordability across Canada, by prioritizing housing-enabling infrastructure to address housing pressures from coast-to-coast-to-coast.

The Canada Housing Infrastructure Fund (CHIF) supports the Government of Canada’s commitment to addressing the housing crisis in communities of all sizes. CHIF aims to accelerate the construction and upgrading of drinking water, wastewater, stormwater and solid waste infrastructure, which is essential for new housing and increased densification. The Fund also supports sustainable community growth by improving the capacity, reliability, and efficiency of new and/or existing systems, while aligning with federal environmental and climate priorities. Furthermore, funding is made available 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 housing density.

In 2026-27, through CHIF’s Direct Delivery Stream, HICC will continue negotiating agreements with recipients to fund additional projects. Under the Provincial and Territorial Agreement Stream, HICC will assess submitted projects and engage with PTs throughout the project lifecycle. Provinces must allocate at least 20% of their CHIF funding to rural, northern and Indigenous communities. As well, Indigenous projects are expected to receive due consideration within this envelope.

Increasing housing supply and supporting community growth first requires adequate water and solid-waste infrastructure. For example, the Toronto Waterfront Enabling Initiative supports the next phase of Toronto’s waterfront revitalization through two projects: 1) the Housing Enabling Infrastructure Project, which provides $325 million in federal investment in housing-enabling infrastructure, and 2) the Broadview Eastern Flood Protection Project which provides $200 million in federal investment towards flood protection infrastructure in the Lower Don Valley area. These projects are expected to enable the future development of over 14,000 homes. In 2026-27, the Department will continue to work with the Ontario Ministry of Infrastructure, the City of Toronto and Waterfront Toronto on the administration of these projects.

Public transit and active transportation infrastructure support economic growth, environmental sustainability, and social inclusion. They are linked to housing supply and affordability given their benefits depend on housing strategies that allow people to live near and access transit. The greatest impacts are achieved through long-term planning across metropolitan regions that integrate housing, land-use, and transportation. The Canada Public Transit Fund (CPTF) provides long-term, stable funding to communities of all sizes to support their public transit and active transportation needs. Recognizing the close link between housing and mobility, the Department will continue working with funding recipients to support transit-oriented community development. Through expanded capacity and resiliency of transit systems and networks, Canadians have access to mobility options, enabling them to reach key amenities, services, community assets and jobs.

HICC’s Housing Needs Assessments (HNAs) are key to the Department’s ability to integrate infrastructure funding with positive housing outcomes. With HICC’s support, more than 100 communities developed HNAs which are providing data that allowed them to identify housing gaps, support local planning, and guide investment decisions. HICC will continue refining pre-populated HNA templates and developing a public platform where they can be easily accessed by Canadians.

Finally, HICC will continue to promote the use of alternative financing, private investment, partnerships, and innovation in housing and infrastructure projects at all levels of government. The Department will also continue to receive advisory support from the Canada Infrastructure Bank to ramp up efforts that address housing needs, including guidance on project development, investment structuring, and due diligence processes.

HICC is helping to ensure vulnerable populations have a roof over their heads. Everyone deserves a safe and stable place to call home, but far too many people in Canada face the daily reality of homelessness. That is why the Department will continue to support communities and partners in their efforts to prevent and reduce homelessness, including chronic homelessness, across Canada.

In 2026-27, Reaching Home: Canada’s Homelessness Strategy will continue to provide crucial funding to urban, Indigenous, rural and remote communities throughout the country. This includes the provision of additional Reaching Home funding, which was provided through Budget 2022 and Budget 2024, that will help organizations deliver vital services to individuals and families experiencing, or at risk of, homelessness. Reaching Home funding will also support capacity building, and Coordinated Access implementation in communities, as well as advance the development of innovative approaches to addressing homelessness.

Given the overrepresentation of Indigenous peoples among those experiencing or at risk of experiencing homelessness, Reaching Home will continue to deliver Indigenous-specific programming streams. HICC will also work with Indigenous partners to identify and advance priorities that meet the unique needs of First Nations, Inuit and Métis individuals across Canada.

Also in 2026-27, the Department will support communities as they sustain and enhance their coordinated, systems-based and data-driven approaches that address local homelessness priorities. This includes providing targeted training and support to help communities maintain and continuously improve Coordinated Access and the Outcomes-Based Approach, and the Homelessness Management Information System. HICC will build on the significant progress achieved by 60 communities (57 Designated Communities outside of Quebec and 3 Territorial Homelessness communities), as the majority will have successfully met Reaching Home minimum requirements. These efforts will help ensure that all communities remain aligned with Reaching Home’s objectives and continue to meet program requirements.

Further, the Homelessness Reduction Innovation Fund, for which the Canadian Alliance to End Homelessness received $45 million in funding from HICC, will support communities across the country looking to improve their data capacity and local systems-level interventions throughout 2026-27.

The VHP aims to prevent and reduce homelessness and provides up to $72.9 million through its Services and Supports Stream. This funding provides rent supplements and wrap-around supports, such as mental health and substance use assistance. In addition, its Capacity Building Stream provides up to $6.2 million to support capacity building and research on Veteran homelessness. In 2026-27, projects will continue to support Veterans experiencing or at imminent risk of homelessness.

The Department will expand the availability and timeliness of statistics on homelessness, while supporting communities working to improve their own data quality. By fall 2026, the longitudinal National Shelter Study will be updated to include 2025 data, including chronic homelessness statistics. Reporting will also continue on the nationally coordinated Point-in-Time counts that have taken place over 2024 and 2025, expanding the understanding of how homelessness affects different populations. The Department will also continue to publish regular updates to the National Homelessness Indicators, which track monthly changes in core Reaching Home outcomes.

HICC continues to ensure that Canadian communities have high-quality infrastructure through a number of programs.

Communities and regions across Canada are facing high costs to improve and expand important infrastructure, and upgrades are needed to support growing populations and replace aging systems. The Build Communities Strong Fund will support housing-enabling infrastructure, such as roads, water, wastewater and solid waste management infrastructure, health-related infrastructure, and infrastructure at colleges and universities. As well, the Fund will support regionally significant projects, large building retrofits, climate adaptation, and community infrastructure.

HICC will also support community growth through the Canada Housing Infrastructure Fund (CHIF), which enables the construction and upgrading of housing-enabling drinking water, wastewater, stormwater, and solid waste infrastructure. These investments support new housing and increased densification. In addition, as part of the CHIF, the Department will work with PTs to address challenges in rural, northern, and Indigenous communities, which are particularly vulnerable to the impacts of degrading water systems. Investing in these systems will be critical in addressing the gaps experienced by these communities, including reliable clean drinking water, leakage controls, waste management, and efficient management of resources.

In addition, HICC will continue to support ongoing projects under the Green Infrastructure Stream of the Investing in Canada Infrastructure Program. These projects contribute to improved environmental quality, including upgraded wastewater treatment or collection infrastructure, as well as drinking water treatment and distribution infrastructure. HICC will also help Canadians through its legacy programming for which funds have been fully allocated, supporting reliable water and wastewater systems and planning for future system improvements that contribute to clean economic growth and long-term prosperity.

The Department will also continue to support communities through the Green and Inclusive Community Buildings (GICB) program, which aims to improve the condition and availability of community buildings across Canada for the benefit of high-needs communities and equity-deserving groups. The program aims to increase the quality of infrastructure through retrofits, repairs, or upgrades of existing and construction of new community buildings that serve these communities across Canada. As GICB funding has been fully allocated, HICC will continue to engage with project recipients throughout their project lifecycle in 2026-27.

The Department will continue supporting the Canadian Infrastructure Council, an arm’s length expert advisory body launched in December 2024 which reports to the Minister of Housing and Infrastructure. In 2026-27, the Council will build on the foundation established through its first report to provide a more detailed analysis of infrastructure needs at the community level, and offer guidance for making more informed decision making.

In 2026-27, HICC will continue to engage and work with Indigenous partners to advance priorities and investments in high-quality infrastructure that support the Government of Canada’s commitment to closing the infrastructure gap in Indigenous communities and advancing reconciliation. These efforts will be supported through bilateral engagement between the Department and Indigenous partners, as well as engagement at whole-of-government fora such as the permanent bilateral mechanisms with Indigenous partners, and the Indigenous Climate Leadership Tables. Continued engagement ensures that the realities and priorities of Indigenous partners inform HICC’s policy and program development.

HICC also plays a core role in providing governance oversight for organizations within its portfolio including supporting Governor in Council and ministerial appointments and fulfilling annual legislative transparency and reporting requirements. Through strong governance frameworks, the Department supports Crown corporations and other entities—including the Windsor-Detroit Bridge Authority (WDBA), the Jacques Cartier and Champlain Bridges Incorporated (JCCBI), the Canada Infrastructure Bank (CIB), the CMHC, the CLC, and other organizations within the Department’s portfolio such as BCH and Waterfront Toronto (WT) — to deliver results aligned with federal priorities. HICC will support these partners in efforts to improve trade corridors, support economic growth and advance nation-building projects such as bridges, ports, railways in order to make it easier for goods, services and workers to move across Canada.

In 2026-27, the Department will continue to provide strategic leadership and oversight to support the WDBA in advancing the Gordie Howe International Bridge project as it transitions to full operations. HICC will also ensure timely access to funding and approvals, monitor progress, and manage risks through established governance mechanisms. Drawing on lessons learned from other major projects, HICC will provide guidance on commercial and technical matters during the transition to operations, as well as communications and events around bridge opening or toll rate announcements, to ensure project success and alignment with federal priorities.

HICC will also oversee JCCBI's activities to enable the continued safety and resilience of their infrastructure assets. The Department will support JCCBI's ongoing work on the Jacques Cartier Bridge, the federal sections of the Bonaventure Expressway and Honoré Mercier Bridge, the Melocheville Tunnel, and the Estacade. HICC will also continue to support JCCBI as it advances major project work on the Bonaventure Expressway Reconfiguration Project and the rehabilitation of the Québec Bridge.

HICC will continue to manage the Samuel De Champlain Bridge Corridor Public-Private Partnership Project Agreement to ensure that operations are carried out safely and efficiently, and that structures are maintained in accordance with the terms of the contract. Additionally, HICC will support active and green transportation by facilitating the operation of the Réseau express métropolitain light rail transit project in the bridge's dedicated transit corridor, and the year-round operation of the multi-use pathway. HICC will continue collaborating with key stakeholders such as its private partner, Caisse de dépôt et placement du Québec (CDPQ) Infra, and Ville de Montréal to ensure efficient operations of the corridor.

In 2026-27, HICC will continue analyzing and exploring solutions to integrate housing, transit-oriented development and community benefits into the HSR project. In March 2025, the signing of the contract between the private developer partner, Cadence, and Alto was announced, initiating the Co-Development phase. During this phase of the project, HICC will support Transport Canada and Alto, leveraging past insights to guide successful implementation.

HICC will also continue to serve as the federal centre of expertise on alternative financing and increasing greater private sector participation in projects, which can serve as a critical mechanism in addressing Canada’s infrastructure, major projects and housing needs. To that end, the Department will provide oversight of, and guidance to, the CIB to ensure alignment with federal priorities, including its support of projects referred to the Major Projects Office and the new BCSF.

Finally, through governance, oversight and strategic leadership on the Intergovernmental Steering Committee, HICC will support Waterfront Toronto projects that promote green building standards, active transportation and a climate-resilient environment, creating healthier communities. These efforts maximize land use for mixed-income housing; catalyze private investment and participation; and deliver modern, net-zero infrastructure and zero-carbon energy systems that strengthen connectivity and resilience.

The availability and reliability of public transit and active transportation infrastructure supports Canada’s economic prosperity and makes communities more livable and accessible for citizens. HICC is committed to ensuring that public transit is convenient, dependable and efficient, to help Canadians access employment and educational opportunities, community services, and improve their physical and mental health, in an affordable way. Accessible and reliable public transit and active transportation also supports the construction of housing, and reduces healthcare costs, congestion, and GHG emissions, making our air and environment cleaner.

In 2026-27, the Department will continue to invest in Canada’s public transit systems by implementing the Canada Public Transit Fund (CPTF). The CPTF will provide municipalities, transit authorities and other eligible recipients with stable, predictable funding needed to plan and implement key public transit projects over the long term. The core objectives of this funding are to increase the use of public transit and active transportation; support the development of housing supply and affordability as part of complete, transit-oriented communities; and increase the mobility options of Canadians.

The program’s Baseline Funding stream will provide predictable, long-term funding to communities with existing transit systems to support routine investments for system expansions, improvements, and state of good repair. The program’s Targeted Funding stream supports the expansion and enhancement of active transportation infrastructure in communities of all sizes across the country; the electrification of bus fleets to promote sustainable mobility, cleaner air, and the reduction of GHG emissions; and the development of locally driven transit solutions that will help people living in rural, remote, northern, and Indigenous communities. The Department will continue to work with recipients under the Active Transportation Fund, the Zero Emission Transit Fund, and the Rural Transit Solutions Fund to ensure that remaining agreements are negotiated and signed for approved and funded projects, and engage with proponents throughout their project lifecycle to ensure the continued oversight and stewardship of approved projects.

As part of the CPTF, the Department will continue to support the development of locally driven transit solutions to address challenges in rural, remote, northern, and Indigenous communities, where people often depend on private vehicles for transportation given the lack of public transit options. This can lead to challenges accessing education, work, healthcare, leisure, and other activities. The Department will continue to engage with partners – including provincial, territorial, and municipal counterparts, and Indigenous organizations – to implement and deliver programming that meets the needs of Canadians and ensures value for money. Moreover, HICC will identify opportunities to streamline the existing CPTF to accelerate delivery of projects and help cities and PTs build new projects faster and better.

In addition, through the Public Transit Infrastructure Stream of the Investing in Canada Infrastructure Program, HICC delivers on investments to support the state of good repair, expansion, and other service improvements to public transit systems across Canada. These projects improve the access, capacity, quality, reliability and safety of existing and future transit systems, with the aim of increasing the use of public transportation. The Department will continue to work collaboratively with provinces, territories and municipalities to support projects approved under the Program.

In 2026-27, the Canada Community-Building Fund will be rebranded as the Community Stream of the new Build Communities Strong Fund. This stream will continue to provide municipalities across Canada with a stable, predictable source of bankable funds to invest in infrastructure that meets their specific needs, including the enhancement of public transit systems and the development of active transportation networks, such as cycling paths and pedestrian walkways.

With an emphasis on research to support evidence-based decision making, HICC is co-developing and implementing, in partnership with Statistics Canada, a new national household survey. The Canadian Survey of Everyday Travel will be launched in 2026 and provide core data on travel patterns and modal share. Further, HICC will complete guiding research on the harmonization of transit data; support standards development to strengthen accessibility and active transportation in transit systems with the Public Health Agency of Canada; and support the research and development of safety guidance to enable wider integration of e-buses in transit systems.

Green infrastructure plays a key role in reducing greenhouse gas (GHG) emissions and pollution. Investing in green infrastructure, such as climate-resilient and energy-efficient buildings, clean energy, solid waste management—water and wastewater systems and environmentally friendly transportation choices—helps build healthy and resilient communities, promotes environmental sustainability, drives economic growth, and supports a net-zero economy.

Through a range of programs and policy tools, HICC continues to ensure that Canadians are better prepared to meet net-zero emissions goals. Under the Canada Housing and Infrastructure Fund (CHIF), HICC will require select projects to implement GHG mitigation measures for asset types where significant GHG emissions are expected, thereby contributing to emissions reductions. The Department will also support the Government of Canada’s Buy Clean policy approach by applying measures for a sub-set of projects to reduce emissions from ready-mixed concrete.

In 2026-27, HICC will also continue to invest in public transportation infrastructure, that will help reduce GHG emissions by shifting travel away from personal vehicle use. The Department will further support reducing GHG emissions from transit operations by continuing to invest in zero emission transit vehicles through the Targeted Funding stream. These investments will support public transit and bus operators across Canada who are electrifying their fleets and building the necessary supporting infrastructure.

Through the Green and Inclusive Community Buildings program, HICC is incentivizing new community spaces to be built to net-zero standards and to incorporate low-carbon design elements; in addition, the program is accelerating the rate of retrofits to achieve deeper emissions reductions and energy efficiency savings. HICC will continue to support ongoing projects by engaging with project proponents.

The Department will also support communities across Canada to be better prepared to meet net-zero emissions goals through its legacy programming which, in part, support environmental infrastructure projects that promote reduced GHG emissions. HICC will continue to work collaboratively with the proponents to support projects approved under these programs.

In 2026–27, HICC will ensure program applicants and infrastructure practitioners have access to dedicated supports including the Climate Toolkit online platform (ClimateInsight.ca), and the Roster of Climate and Infrastructure Experts (ClimateReadyCanada.ca), enabling stakeholders to deliver resilient, low-carbon solutions nationwide.

HICC supports evidence-based climate action, research and analysis to identify sector needs as well as best practices, barriers, and solutions. For example, the Department supports the implementation of the Cabinet Directive on Strategic Environmental and Economic Assessment within HICC by applying the Climate, Nature and Economy Lens across departmental initiatives. This helps ensure that GHG emissions impacts and climate resiliency considerations are properly assessed. In 2026-27, HICC will also continue to strengthen its internal expertise related to developing effective climate change objectives, ensuring they are included and advanced in proposals, where appropriate. Findings from these assessments will also be actively communicated.

As well, HICC is developing and disseminating evidence tools and research findings that inform responses to climate risks. These include case studies of housing and infrastructure projects that can assess the costs and benefits of building with low-carbon materials and applying re-use and green building practices; and identifying strategies that owners and investors can use to make the business case for advancing climate and affordability outcomes together. The Department will also collaborate with federal partners to streamline disclosure of embodied carbon across federal infrastructure projects, which will support improved data quality and enable analysis for future emissions reduction.

With respect to HICC’s oversight role of the Canada Infrastructure Bank (CIB), HICC measures progress of emissions reductions of its investments in green infrastructure.

As Canadians are already experiencing the adverse consequences of a rapidly changing climate, it is vital to ensure that community, cultural and recreation facilities can withstand climate-driven risks and extreme weather events, including flooding, wildfires, intense heat, extreme and unpredictable weather, to erosion and sea-level rise. Our investments are supporting communities across the country in implementing and improving infrastructure solutions that protect the critical services that Canadians rely on every day. Not only will this ensure that infrastructure is resilient in the face of climate-related events for decades to come, but these investments can also create long-term savings, preventing costly repairs and service disruptions.

HICC will continue to protect communities most at risk by flowing funds to approved projects under the Disaster Mitigation and Adaptation Fund (DMAF). The Fund supports the construction and rehabilitation of public infrastructure to reduce the impacts of climate change, natural hazards, and extreme weather. While DMAF improves resilience for all Canadians, HICC recognizes that small, rural, remote, northern, and Indigenous communities face heightened vulnerability; accordingly, at least 10% of program funding is allocated to Indigenous recipients.

The Department will continue the delivery and oversight of approved projects under the Natural Infrastructure Fund (NIF), including flowing funding and providing program support throughout the project lifecycle. Resilient infrastructure projects funded through the NIF help communities prevent and mitigate climate change impacts, such as flash floods, and also support the protection and recovery of wildlife species, including species at risk. Through the delivery of these projects, the Fund advances Canada’s climate and socioeconomic objectives by supporting healthy, inclusive, and resilient communities.

The Department will also continue to help Canadian communities plan for the impacts of climate change through the Rural and Northern Communities Infrastructure Stream (RNIS) and the Arctic Energy Fund (AEF) of the Investing in Canada Infrastructure Program (ICIP). The RNIS provides funding for the unique and wide-ranging infrastructure priorities of small, rural and remote communities to help improve food security; road, air or marine infrastructure; broadband connectivity; and education or health facilities. The AEF supports energy security in communities in the North, including Indigenous communities, by investing in upgrades to existing fossil fuel-based energy systems. It also supplements or replaces these systems with renewable energy options, to improve reliability, efficiency, and reduce pollution.

In addition, the Department will continue to implement and use the Climate Lens, a horizontal technical requirement within ICIP and DMAF, to ensure that GHG emissions and climate resilience are considered for federally funded infrastructure projects under these programs.

HICC will also continue to implement the federal infrastructure priorities as outlined in the National Adaptation Strategy (NAS). As lead department for the Infrastructure System of the NAS, HICC will report on progress in the NAS Progress Report expected to be published in 2026-27. Guided by the NAS, the Department will continue to implement climate resilience considerations into its major infrastructure programs, such as the Canada Housing Infrastructure Fund and the Canada Public Transit Fund.

Under the NAS, HICC will also continue to work with the National Research Council (NRC) and the Standards Council of Canada (SCC) to deliver on the commitment that additional climate change resiliency considerations are incorporated into the National Building Code; the Canadian Highway Bridge Design Code; and Canadian Electrical Code. The Department will further collaborate with the NRC and the SCC to ensure that robust guidance, codes, and standards covering the top climate change risks for key public infrastructure systems are available to all infrastructure decision-makers by 2030. HICC is also developing several tools to support municipalities and program applicants to implement cost-effective natural infrastructure solutions.

As Canadian communities plan for climate impacts, HICC is offering free, tailored guidance, data, and tools to integrate energy efficiency and resilience into housing and infrastructure projects through the Climate Toolkit for Housing and Infrastructure (CTHI) services. These include the Climate Help Desk, roster of experts, and the Climate Insights platform. These resources enable local leaders to make informed, cost-effective decisions that reduce climate risks, protect residents and stabilize future housing and service delivery. CTHI will also provide capacity building supports to increase awareness and skills related to climate vulnerabilities, such as extreme heat, flooding, and infrastructure gaps—including their intersection with energy poverty and affordability challenges.

Through strong governance, oversight and active participation on the Intergovernmental Steering Committee, the Department will also continue to work with government partners and Waterfront Toronto to deliver sustainable and resilient infrastructure that proactively addresses the impacts of climate change. A key example is the Port Lands Flood Protection Project, which is engineered to protect the area from a regional storm or a 100-year flood event. This transformative initiative not only mitigates flood risk, but also ensures long-term resilience, supports climate adaptation, and creates a foundation for vibrant, sustainable communities.

At the heart of vibrant communities are the buildings and facilities where all Canadians are welcomed. HICC continues to invest in spaces where Canadians can connect with their community, enjoy leisure activities and sports, and participate in cultural activities and expression.

Budget 2025 announced the Government’s intention to launch a new Build Communities Strong Fund (BCSF) to 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. In 2026-27, HICC will undertake the implementation and delivery of this new Fund and its three funding streams.

First, the BCSF’s Provincial and Territorial Stream will provide $17.2 billion over 10 years to support housing enabling infrastructure, such as roads, water and wastewater, and infrastructure at colleges and universities. As part of this funding, $5 billion will be dedicated to a Health Infrastructure Fund over the next 3 years. This fund will complement existing supports provided to PTs by helping to ensure infrastructure, such as hospitals, emergency rooms, urgent care centres, and medical schools, will be able to respond to the health care needs of Canadians.

Second, BCSF’s Direct Delivery Stream ($6 billion) will support regionally significant projects, large building retrofits, climate adaptation, and community infrastructure.

Lastly, the Canada Community-Building Fund (CCBF) will be rebranded as the Community Stream ($27.8 billion) of the BCSF. It will continue to provide yearly funding to PTs, who in turn flow the funds to their municipalities. Communities have the opportunity to make strategic investments across 19 different project categories which include, in part, investments in recreational facilities, community energy systems. and local and regional airports. Municipalities are able to invest in infrastructure that meets their specific needs, including enhancing and upgrading existing community assets to improve accessibility for all. The related Administrative Agreements with the PTs are in place until March 2034 and, through these agreements, the Stream will continue to provide communities across Canada with a stable, predictable source of bankable funds to build or enhance core public infrastructure.

The Department will also continue to support ongoing projects under the Green and Inclusive Community Buildings (GICB) Program. The GICB supports the construction, retrofit, repair or upgrade of new and existing publicly accessible community buildings that serve equity-deserving and high-needs communities across Canada. While benefiting all community members, the program is expected to provide particular benefits to Indigenous Peoples, where infrastructure gaps persist. Accordingly, a minimum of 10% of Program funding is allocated to Indigenous recipients. In 2026-27, HICC will work collaboratively with recipients to ensure that contribution agreements are in place for approved and funded projects, and engage with proponents throughout a project’s lifecycle.

Under the Investing in Canada Infrastructure Program (ICIP), HICC invests through the Community, Culture and Recreation Infrastructure Stream in projects that enhance cultural assets such as museums and Indigenous heritage centres, upgrades to recreational facilities and spaces, and improvements to community centres and libraries. Through the Rural and Northern Communities Infrastructure Stream, the Department also supports the diverse infrastructure priorities of small, rural, and remote communities, including projects that strengthen food security; improve transportation, broadband, energy, and community infrastructure; and enhance education and health facilities—consistent with the Truth and Reconciliation Commission’s Calls to Action. HICC will continue to work with PTs to deliver approved ICIP projects.

HICC investments are increasing the accessibility of community spaces. An accessible community is one that is barrier-free and does not limit anyone’s participation. The Department is dedicated to ensuring that these community spaces exist and thrive for the benefit of all Canadians. Further, in 2026-27, HICC will continue to monitor and implement the 2026-2028 Departmental Accessibility Plan that was published in December 2025. In addition, the Department will continue to ensure that accessibility and inclusion are taken into consideration within the design and delivery of programs. More specifically, current programs will continue to include criteria for infrastructure projects to meet horizontal federal requirements for barrier-free design.

As noted in the above table, the forecast results total for 2025-26 is $8.7 billion, and the Planned spending total for 2026-27 is $10.4 billion, which results in a difference of $1.7 billion. The planned spending increase is primarily attributable to the ramp-up of programs such as Investing in Canada Infrastructure Program and the Canada Public Transit Fund.

The increase of Full-Time Equivalents from 2023-24 to 2025-26 is primarily attributable to the Department increasing capacity through recent budgets to help deliver on new and renewed programming such as the Canada Housing Infrastructure Fund, the Canada Public Transit Fund, and Reaching Home: Canada's Homelessness Strategy. The Department also continued the transfer of the Housing Policy resources from the Canada Mortgage and Housing Corporation.

The decrease in planned Full Time Equivalents from 2026-27 to 2028-29 is primarily attributable to the Department decreasing its capacity due to the planned sunsetting of funding for existing programs such as Reaching Home: Canada's Homelessness Strategy, the Supporting Climate Resilient Infrastructure Initiative, the Veterans Homelessness Program, the oversight support for the Samuel De Champlain Bridge Corridor and Quebec Bridge, as well as the implementation of Budget 2025 measures.