Quarterly Financial Report for the quarter ended September 30, 2025

Housing, Infrastructure and Communities Canada - Quarterly Financial Report for the quarter ended September 30, 2025 (PDF Version)

• Copyright

  © His Majesty the King in Right of Canada, as represented by the Minister of Housing, Infrastructure and Communities, 2025.

  Cat. No. T91-11E-PDF
  ISSN 2818-2766

Statement outlining results, risks and significant changes in operations, personnel and programs

Introduction

This quarterly report has been prepared by management as required by Section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This quarterly report should be read in conjunction with HICC’s Main Estimates.

The key to building Canada for the 21st century is helping all communities thrive by making housing more available and affordable while making public infrastructure more sustainable, inclusive and climate-resilient. HICC makes significant investments in housing and public infrastructure, addresses homelessness needs, builds public-private-partnerships, and delivers programs that improve Canadians’ quality of life while creating jobs and supporting economic growth.

Further information on HICC’s mandate, responsibilities, and programs can be found on HICC’s Website.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes HICC’s spending authorities granted by Parliament and those used by HICC consistent with the Main Estimates for the 2025-26 fiscal year (FY). This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before monies can be spent by the government. Approvals are given in the form of annually approved limits through Appropriation Acts or through legislation in the form of statutory spending authority for specific purposes.

HICC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

HICC works in collaboration with other federal departments and agencies to deliver some of its transfer payment programs (collectively known as federal delivery partners).

It should be noted that this quarterly report has not been subject to an external audit or review.

Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to the change in resources available for use from 2024-25 to 2025-26 and in actual expenditures from 2024-25 to 2025-26 as of September 30 (second fiscal quarter).

Statement of Authorities

Graph 1: Comparison of Authorities Available as of September 30, 2024 and September 30, 2025

As shown in the Statement of Authorities, HICC’s total authorities available for 2025-26 are $9.1 billion as of the end of Q2 and represent a $1.5 billion increase compared to the same quarter in the prior year (PY). This increase is summarized in the table below.

The 2025-26 authorities increase being reported does not represent a net increase for the department relative to 2024-25 as they do not consider 2024-25 INFC Q1 authorities of 0.6$ billion. INFC authorities are not included in the comparative information provided in this report.

Table 1: Year-to-date change in total authorities as of September 30, 2025

Authorities	Increase/(Decrease) vs. Prior Year-to-date (000’s)
Operating Expenditures	126,023
Capital Expenditures	23,547
Transfer Payments (Voted and Statutory)	1,311,726
Contributions to Employee Benefit Plans (EBP)	13,650

Year-over-year changes, are summarized as follows:

• Operating Expenditures - The increase in operating funding is largely tied to new and renewed initiatives announced in previous Federal Budgets, such as Canada Housing Infrastructure Fund, Reaching Home, Green and Inclusive Community Buildings, and Canada Public Transit Fund.
• Capital Expenditures - The increase in capital funding is primarily related to the Gordie Howe International Bridge project.
• Transfer Payments (Voted and Statutory) - The increase is mainly attributable to the continued ramp up of the Investing in Canada Infrastructure Program, as well as new and renewed programs from Budget 2024 initiatives.
• Contributions to Employee Benefit Plans - This increase is reflective of employee growth from Budget 2024 initiatives.

Expenditure analysis

Expenditures at the end of Q2 were $2.6 billion, compared to $1.6 billion reported in the same period of 2024-25, representing an increase of 66.2%. The source of the increase is demonstrated in the tables, graphs and analysis below. 

The 2025-26 expenditure increase being reported does not represent a net increase for the department relative to 2024-25 as they do not consider 2024-25 INFC Q1 expenditures of 0.6$ billion. INFC expenditures are not included in the comparative information provided in this report.

Graph 2: Comparison of Total Expenditures as of September 30, 2024 and September 30, 2025

Table 2: Year-to-date change in expenditures as of September 30, 2025

Year-to-date expenditures	Increase/(Decrease) vs. Prior Year-to-date (000’s)
Operating Expenditures	67,434
Capital Expenditures	1,632
Transfer Payments (Voted and Statutory)	954,389
Contributions to Employee Benefit Plans	9,227

Year-over-year changes are summarized as follows:

• Operating and Capital Expenditures - Further details by standard object can be found in Table 4.
• Transfer Payments (Voted & Statutory) - Further details by program can be found in Table 3.
• Contributions to Employee Benefit Plans - This increase is reflective of employee growth from Budget 2024 initiatives.

Graph 3: Comparison of Authorities used for Transfer Payments (Voted and Statutory) as of September 30, 2024 and September 30, 2025

Significant changes in year-to-date transfer payment expenditures between September 30, 2024 and September 30, 2025 were as follows:

Table 3: Year-to-date change in expenditures by transfer payment program as of September 30, 2025

Program Name	Increase/(Decrease) vs. Prior Year-to-date (000’s)
Reaching Home: Canada's Homelessness Strategy	629,063
Investing in Canada Infrastructure Program	121,339
New Building Canada Fund - Provincial-Territorial Infrastructure Component - National and Regional Projects	72,950
Canada Community-Building Fund (Statutory)	67,712
Green and Inclusive Community Buildings	44,399
New Building Canada Fund - National Infrastructure Component	16,975
Disaster Mitigation and Adaptation Fund	11,219

Year-over-year changes are summarized as follows:

• Reaching Home: Canada's Homelessness Strategy - $629.1 million increase is primarily attributable to claims received during the first 2 quarters of FY 2025-26, particularly from Quebec, Alberta, and British Columbia, with the most significant contributions stemming from the Designated Communities stream.
• Investing in Canada Infrastructure Program - $121.3 million increase is mainly due to more claims received in FY 2025-26, particularly under the Public Transit Infrastructure stream (PTIS) and Green Infrastructure stream (GIS), offset by a reduction in claims received under the COVID-19 Resilience stream (CVRIS), as claims under this stream continue to decrease.
• New Building Canada Fund - Provincial-Territorial Infrastructure Component - National and Regional Projects - $73 million increase is mainly due to more claims received in FY 2025-26, particularly from Quebec and British Columbia, offset by fewer claims received from Alberta.
• Canada Community-Building Fund - $67.7 million increase is mainly due to the regular index-based increase to the annual allocation in FY 2025-26.
• Green and Inclusive Community Buildings - $44.4 million increase is mainly due to more advance payments issued and claims received in FY 2025-26, particularly from Quebec, Manitoba and British Columbia. Most provinces experienced an increase in expenditures, while Ontario, Alberta and Saskatchewan had fewer expenditures.
• New Building Canada Fund – National Infrastructure Component - $17 million increase is a result of a single claim received from Quebec in FY 2025-26, whereas no claims were submitted as of Q2 in FY 2024-25.
• Disaster Mitigation and Adaptation Fund - $11.2 million increase is attributable to significant payments issued in FY 2025-26, especially to the Northwest Territories and Alberta, while fewer claims were paid to Manitoba. 

Departmental Budgetary Expenditures by Standard Object

The planned Departmental Budgetary Expenditures by Standard Object are set out in the table at the end of this report. Aggregate year-to-date expenditures in 2025-26 increased by $1.0 billion, compared with the same quarter last year. The largest single factor was transfer payments as detailed in Table 3 above.

A breakdown of the variances in year-to-date expenditures by standard object are summarized in the table below:

Table 4: Year-to-date change in expenditures by standard object as of September 30, 2025

Standard Object	Increase/(Decrease) vs Prior Year-to-date (000's)
Personnel	50,439
Transportation and communications	225
Information	(15)
Professional and special services	14,597
Rentals	384
Repair and maintenance	4,190
Utilities, materials and supplies	34
Acquisition of land, buildings and works	1,490
Acquisition of machinery and equipment	65
Transfer payments	954,390
Public debt charges	6,807
Other subsidies and payments	76

The most significant year-over-year changes are summarized as follows:

• Personnel - The increase is largely tied to employee growth from new and renewed initiatives announced in previous Federal Budgets.
• Professional and Special Services - The increase is mainly attributable to changes in the billing process for both legal services and language training expenditures, an increase in engineering consultant payments, and a research service contract with the National Research Council.
• Repair and Maintenance - The increase is due to the annual indexation and adjustment rate associated with the Signature on the St. Lawrence (SSL) Group’s contract and the variance of the Heavy Truck Adjustment (HTA) for the Samuel De Champlain Bridge Corridor project.
• Transfer payments - Details were previously explained.
• Public Debt Charges - The increase is due to interest payments on the SDCBC project.

Overall, HICC has spent 28.5% of its current Total Authorities as of September 30, 2025, compared to 20.5% at the end of the same period last year. This is mainly due to a relative increase in Transfer Payment expenditures in Q2 of FY 2024-25. The majority of HICC Grant and Contribution (G&C) spending typically occurs in the final quarter of the fiscal year. The influx of claims submitted for reimbursement at year-end is driven by several factors, including the timing of construction seasons, which has a direct impact on the finalization of claims.

Risks and uncertainties

The Department’s ability to achieve its forecasted program spending is subject to a range of risk drivers that influence both the timing and magnitude of expenditures. These risks are particularly pronounced in the context of G&C funded infrastructure projects delivered by recipients, where external factors can significantly affect project progress and financial outcomes.

Key Risks, Drivers and Implications

• Delays in the Signing of G&C Funding Agreements with Recipients
  Recipients may begin incurring eligible costs once a project is approved; however, costs become eligible for reimbursement only after the funding agreement has been signed. In many cases, signing occurs well after construction has commenced, resulting in delays in reimbursing costs and potential misalignment between planned and actual spending.
• Delays in Recipients’ Progress on G&C Projects
  HICC’s annual G&C spending depends directly on recipients’ progress on approved projects throughout the fiscal year. External factors, such as the unpredictability of the Canadian construction season, climate-related events, evolving environmental regulations, the complexity inherent to multi-million dollar procurements, labour shortages, tariff and trade uncertainties and global supply chain disruptions can delay project execution, lead to cost overruns and increase the risk of funds lapsing.

Mitigation Strategies

To manage these risks, HICC works closely with recipients, including provincial and territorial partners, to improve spending forecasts and minimize lapses. This involves developing forecasting models that draw on historical trends and account for factors that may delay the signing of funding agreements and the implementation of projects, as well as embedding mandatory cashflow updates and claims scheduled within agreements. HICC also embeds mandatory cashflow updates and claims schedules within agreement templates for new G&C programs to improve accuracy and predictability.

When G&C funds lapse, HICC may request that lapsing funds be reprofiled (moved from one fiscal year to another) to ensure that they remain available for the approved projects and programs.  This approach helps HICC fulfill its program commitments to recipients while maintaining prudent fiscal management.

Significant changes in relation to operations, personnel and programs

Since the last QFR, the following significant changes have taken place within the department:

• Build Canada Homes (BCH) was established as a Special Operating Agency (SOA) within HICC, effective August 27, 2025. Ana Bailão was appointed Chief Executive Officer (CEO) of Build Canada Homes. Ana will lead this new dedicated, mission-driven federal agency that brings together public lands, tailored financing, and investments in modern methods of construction.

Approval by senior officials

Annex A: Quarterly Financial Report For the quarter ended September 30, 2025

Departmental budgetary expenditures by Standard Objects (unaudited)
(in thousands of dollars)
Fiscal year 2024-25

Expenditures	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended September 30, 2024	Year-to-date used at quarter-end
Personnel	130,425	54,039	58,737
Transportation and communications	1,844	269	342
Information	1,212	1,537	1,537
Professional and special services	63,358	6,070	6,455
Rentals	3,219	544	559
Repair and maintenance	18,172	5,271	5,271
Utilities, materials and supplies	95	31	33
Acquisition of land, buildings and works	12,964	1,975	1,975
Acquisition of machinery and equipment	9,321	39	39
Transfer payments	7,350,757	1,466,184	1,475,164
Public debt charges	37,420	10,469	10,469
Other subsidies and payments	(42)	15	12
Total net budgetary expenditures	7,628,745	1,546,443	1,560,593

Departmental budgetary expenditures by Standard Objects (unaudited)
(in thousands of dollars)
Fiscal year 2025-26

Expenditures	Planned expenditures for the year ending March 31, 2026	Expended during the quarter ended September 30, 2025	Year-to-date used at quarter-end
Personnel	214,211	49,434	109,176
Transportation and communications	5,712	270	567
Information	5,749	486	1,522
Professional and special services	81,000	16,366	21,052
Rentals	3,832	466	943
Repair and maintenance	26,789	7,632	9,461
Utilities, materials and supplies	598	35	67
Acquisition of land, buildings and works	52,246	2,089	3,465
Acquisition of machinery and equipment	7,474	80	104
Transfer payments	8,662,485	1,710,640	2,429,554
Public debt charges	43,595	10,356	17,276
Other subsidies and payments	-	61	88
Total net budgetary expenditures	9,103,691	1,797,915	2,593,275

Statement of Authorities (unaudited)
(in thousands of dollars)
Fiscal year 2024-25

	Total available for use for the year ending March 31, 2025	Used during the quarter ended September 30, 2024	Year-to-date used at quarter-end
Vote 1 - Operating expenditures	226,696	73,355	78,507
Vote 5 - Capital expenditures	36,781	2,073	2,073
Vote 10 - Contributions	4,982,600	291,105	300,085
Budgetary Statutory Authorities
(S) Contributions to employee benefit plans	14,420	4,798	4,808
(S) Canada Community-Building Fund	2,368,158	1,175,079	1,175,079
(S) Minister salary and car allowance	90	33	41
Total Budgetary Authorities	7,628,745	1,546,443	1,560,593
Non-Budgetary Authorities	-	-	-
Total Authorities	7,628,745	1,546,443	1,560,593

Statement of Authorities (unaudited)
(in thousands of dollars)
Fiscal year 2025-26

	Total available for use for the year ending March 31, 2026	Used during the quarter ended September 30, 2025	Year-to-date used at quarter-end
Vote 1 - Operating expenditures	352,707	78,090	145,928
Vote 5 - Capital expenditures	60,328	2,130	3,705
Vote 10 - Contributions	6,195,653	467,851	1,186,763
Budgetary Statutory Authorities
(S) Contributions to employee benefit plans	28,070	7,017	14,035
(S) Canada Community-Building Fund	2,466,831	1,242,790	1,242,790
(S) Minister salary and car allowance	102	37	54
Total Budgetary Authorities	9,103,691	1,797,915	2,593,275
Non-Budgetary Authorities	-	-	-
Total Authorities	9,103,691	1,797,915	2,593,275