As Canada heads into the spring construction season, municipal leaders across the country are sounding an increasingly urgent alarm: federal infrastructure funding must flow faster if cities are to deliver the housing and economic growth the country desperately needs.
Mayors from the Federation of Canadian Municipalities (FCM) say delays in getting federal dollars to municipalities risk slowing construction projects, driving up costs and undermining efforts to address the housing shortage at a critical moment for the country.
The issue was front and centre in recent discussions between mayors from the Big City Mayors’ Caucus and Prime Minister Mark Carney, where local leaders emphasized the need for Ottawa to accelerate the delivery of infrastructure funding so cities can get projects underway this construction season.
Municipal leaders say the stakes could not be higher because housing construction, transit expansion and key infrastructure upgrades depend on timely federal investment. When funding arrives late or is tied up in lengthy approval processes, projects can stall and costs climb.
“Mayors share the federal government’s ambition and sense of urgency, which is why we need to work together to get shovels in the ground this season,” said Josh Morgan, chair of the Big City Mayors’ Caucus.
Building homes requires more than just construction crews and development approvals. It requires roads, water systems, transit networks and utilities that can support new communities.
Municipalities play a central role in delivering those systems. According to the FCM, local governments own more than 75 per cent of the roads that support Canada’s supply chains and more than 60 per cent of the country’s public infrastructure.
But despite that responsibility, cities rely heavily on federal and provincial funding partnerships to build and maintain those systems.
When federal dollars arrive too slowly, municipalities often face difficult choices: delay projects, scale them back or borrow more money to bridge the gap.
Mayors warn if infrastructure projects cannot move ahead this spring and summer, the consequences could ripple across the economy.
Beyond slowing progress, delays can also significantly increase project costs. Construction prices remain sensitive to inflation, labour availability and supply chain pressures. When projects are postponed, materials and labour can become more expensive by the time construction begins.
For cities facing tight budgets and growing infrastructure demands, it can force projects to be scaled back or cancelled entirely, the mayors say.
Municipal leaders argue getting funding to cities quickly allows municipalities to lock in contracts, secure labour and purchase materials before costs rise further.
“Cities need support that arrives in time and at a scale that matches the needs on the ground,” Morgan said.
The municipal leaders say Ottawa already has a proven mechanism to get infrastructure dollars moving quickly. The community stream of the Building Communities Strong Fund provides direct and predictable funding to municipalities and does not require lengthy application processes.
Municipal leaders are also calling on Ottawa to take a longer-term view of infrastructure investment.
A key recommendation from the Big City Mayors’ Caucus is the creation of a long-term national infrastructure plan that aligns federal, provincial and municipal priorities.
A co-ordinated national strategy could better link infrastructure investment to broader economic goals such as housing affordability, trade competitiveness and national resilience.
The push for faster funding comes as municipalities face growing demands on multiple fronts.
Cities must expand infrastructure to accommodate population growth, maintain aging systems and support new housing developments – all while dealing with rising costs and limited revenue tools. At the same time, global economic uncertainty is putting pressure on communities.
Rebecca Bligh, president of the FCM, recently warned geopolitical tensions and supply chain disruptions are already affecting Canadian communities.
“Canadians are feeling the global uncertainty locally through delays in supply chains, energy prices soaring and the rising costs for essential goods,” she said.
The urgency surrounding infrastructure funding is also tied directly to Canada’s housing crisis.
Governments at all levels have committed to significantly increasing housing supply in the coming years. But building those homes requires the infrastructure to support them. Without adequate transit systems, water infrastructure and transportation networks, many housing projects cannot proceed.
With the 2026 construction season approaching, mayors are urging Ottawa to ensure federal infrastructure programs move at the pace needed to keep housing and economic growth on track.
If funds do not flow, they say, Canada risks losing another crucial construction season — and falling even further behind in the race to build the homes and infrastructure the country needs.
