The next edition of the Ottawa Report is scheduled to be sent at the end of July.
Latest News
Building Local Infrastructure Projects Through Canada’s Regional Development Agencies
The Government of Canada announced that $1 billion from the Build Communities Strong Fund will be delivered through Canada’s Regional Development Agencies under the Local Impact Stream to support community infrastructure projects across the country. The funding is intended for shovel-ready, locally-driven projects that reflect regional priorities and generate economic benefits, including community buildings, recreation facilities, innovation hubs, cultural spaces, and upgrades such as expansions, renovations, retrofits, climate adaptation, or replacement of existing assets.
Applicants with shovel-ready projects seeking less than $1 million in funding are encouraged to apply through the relevant regional economic development agency. Funding figures are expected to be spent over four years, and there will be multiple rounds of applications.
- Canadian Northern Economic Development Agency (FedNor) will be allocated $22.7 million to support communities, application intake is open until July 10, 2026.
- Federal Economic Development Agency for Southern Ontario (FedDev) will invest $330 million through this funding, the application deadline is July 9, 2026.
- Prairies Economic Development Canada (PrairiesCan) will be delivering $176.6 million and will be accepting submissions until July 17, 2026.
- Pacific Economic Development (PacifiCan) expects to fund projects up to $1 million and applications must be submitted by September 14, 2026.
- Atlantic Canada Opportunities Agency (ACOA) is allocated $76 million, with no specific deadline for applications identified yet.
- Canada Economic Development for Quebec Regions (CED) funding details are still being worked out and will be available soon.
Canada and Ontario Launch a Housing Development Charge Reduction Program
The Government of Ontario has launched the Development Charge Reduction Program, a funding initiative intended to help municipalities lower development charges and support housing-enabling infrastructure. Under the program, eligible municipalities are required to reduce development charges by 30% to 50% or more for three years, with funding directed toward infrastructure such as roads, water systems, wastewater systems, and transit. The program is part of the broader $8.8 billion Canada-Ontario Partnership to Build, with federal funding delivered through the Build Communities Strong Fund’s Provincial and Territorial stream.
The initiative reinforces the central role of infrastructure costs in housing affordability and supply, particularly in fast-growing communities where development charges can affect project feasibility.
Canada and Québec Partner to Build Strong New Local Infrastructure
Prime Minister Carney announced a new Canada-Québec infrastructure partnership that will invest nearly $10 billion over 10 years in Québec through the Build Communities Strong Fund and the Canada Public Transit Fund. The announcement includes more than $2.5 billion for housing-related, post-secondary, and community infrastructure; more than $1 billion over three years for hospitals, emergency rooms, urgent care centres, medical schools, and other critical health facilities; and more than $6 billion for public transit modernization across the province. It also highlights support for major transit projects such as Québec City’s TramCité project, as well as $400 million for zero-emission transit projects, including electric buses and charging infrastructure.
Canada and British Columbia Partner to Accelerate Homebuilding, Lower Costs, and Build New Local Infrastructure
The Prime Minister announced a new Canada-British Columbia infrastructure partnership that will invest more than $5 billion over 10 years in local infrastructure across the province. The announcement includes nearly $1.6 billion through the Build Communities Strong Fund, to be matched by British Columbia for a total of up to $3.2 billion, to reduce development charges for multi-unit housing by up to 50% in priority communities and support housing-enabling infrastructure such as water, wastewater, and local roads. It also includes more than $600 million over three years—also matched by the province—for health infrastructure, up to $50 million for coastal community infrastructure, and $2.5 billion over 10 years through the Canada Public Transit Fund for transit projects and service improvements.
Minister LeBlanc Engages with Canadian Municipal Leaders
Minister LeBlanc met with municipal leaders and the President of the Federation of Canadian Municipalities during FCM’s Annual Conference in Edmonton to discuss shared priorities across orders of government. Minister Leblanc emphasized the role of municipalities in representing more than 90% of Canadians and highlighted key areas of collaboration, including Canada-US trade negotiations, internal trade, nation-building infrastructure, housing affordability, homelessness, and accelerated investment. Minister LeBlanc noted the importance of intergovernmental coordination in delivering infrastructure and housing outcomes, particularly as municipalities continue to face frontline pressures related to growth, affordability, homelessness, and economic resilience.
Federal, Provincial, and Territorial Ministers Meet in PEI to Strengthen on Rural Development
Federal, provincial, and territorial ministers responsible for rural development met in Morell, Prince Edward Island, to discuss shared priorities and strengthen collaboration on rural economic development across Canada. Ministers highlighted the economic importance of rural, remote, and Indigenous communities, noting that rural communities represent 13% of Canada’s population while contributing 27% of national GDP. Ministers discussed opportunities and challenges facing rural Canada, including workforce and skilled labour retention, infrastructure and energy needs, transportation gaps, and geographic barriers that can limit access to services and economic opportunities.
The meeting reinforces the continued importance of intergovernmental coordination in ensuring that rural policy reflects the distinct realities of smaller, remote, northern, and Indigenous communities. Ministers noted the forthcoming federal Rural Development Action Plan, expected later in 2026, as a key vehicle for aligning federal policies with rural priorities while respecting provincial and territorial roles.
Provincial and Territorial Ministers Collaborate on Effective Local Governance and Infrastructure Needs
Provincial and territorial ministers responsible for local government met in Jasper to discuss shared priorities related to local governance, municipal capacity, and infrastructure needs. The meeting included updates from working groups on municipal codes of conduct, harassment of elected officials and municipal employees, retention of municipal chief administrative officers, training for newly elected councils, and mechanisms to assess infrastructure needs. Ministers also emphasized the importance of stable, predictable, and flexible federal infrastructure funding that can respond to rising costs, supply-chain pressures, and the diverse circumstances of provinces and territories.
Ministers noted ongoing concerns about the complexity of federal infrastructure programs and the need to align federal investments with provincial and territorial priorities, including how policies such as Buy Canadian requirements may affect municipal projects.
The Parliamentary Budget Officer Reviews Infrastructure Spending
The Parliamentary Budget Officer’s review of the Supplementary Estimates (A), 2026–27 found that the federal government is seeking parliament’s approval for $11.1 billion in additional voted spending, with major planned expenditures concentrated in Indigenous-related programs, housing and infrastructure, defence, and Canada Post. The report notes that housing and infrastructure are a significant component of this spending, with $3.2 billion in planned spending to include $2.3 billion for the Build Communities Strong Fund, alongside additional statutory spending for Build Canada Homes and the Canada Infrastructure Bank. This reinforces the central role of infrastructure investment in the government’s fiscal agenda.
Parliamentary Business
Senate Report on Wildfire Management
This Senate Committee on Agriculture and Forestry‘s report on the Catastrophic and Escalating Effects of Wildfire on Lives and Communities concludes that wildfires in Canada have become an escalating national crisis driven largely by climate change, with increasingly severe seasons causing widespread economic, social, health, and environmental impacts across forestry, agriculture, and communities—especially Indigenous and rural populations. It highlights strain on infrastructure, insurance systems, and emergency response capacity. The report finds that fragmented governance, aging equipment, and insufficient coordination and funding are hindering effective response, while emphasizing the need for a proactive, whole-of-society approach that includes stronger federal leadership, Indigenous-led fire stewardship, improved mitigation strategies, investment in modern technology and national firefighting capacity, and policies that prioritize resilience, adaptation, and recovery across all sectors.
Environment Committee Report on Freshwater in Canada
The House of Commons Committee on Environment and Sustainable Development’s report finds that Canada’s freshwater system faces growing pressure due to aging and underfunded infrastructure, fragmented water management, and rising environmental risks. Water infrastructure, such as drinking water systems and wastewater treatment, is said to often be outdated, leaking significant volumes and leaving some communities—particularly Indigenous and rural ones—without reliable access to safe water. This creates a substantial investment gap and vulnerability to failures and contamination. At the same time, water management is highly complex and split across multiple levels of government, leading to coordination challenges and inconsistent policies, which the report identifies as a major barrier to effective action. Environmental risks are intensifying, driven by climate change (increased floods and droughts), pollution (including PFAS, nutrients, plastics, and industrial contaminants), and ecosystem degradation, all of which threaten water quality, biodiversity, and long-term supply. Together, these factors highlight the need for integrated watershed-based management, stronger intergovernmental coordination, and sustained investment in resilient infrastructure to safeguard Canada’s freshwater systems.
Environment Committee Report on Extreme Weather Events
The House of Commons Environment and Sustainable Development Committee’s report on Extreme Weather Events concludes that climate change is making extreme weather events in Canada more frequent and severe, placing growing pressure on infrastructure, communities, and public finances. Aging and vulnerable infrastructure such as housing, roads, and flood control systems is increasingly at risk, leading to rising repair costs, insurance premiums, and disruptions to daily life. Key proposed solutions include investing in climate‑resilient infrastructure, improving flood mapping and risk awareness, developing a national flood insurance program, strengthening emergency management systems, and incorporating nature‑based solutions. The committee calls for increased and sustained funding—particularly expanding programs like the Disaster Mitigation and Adaptation Fund—along with better coordination across all levels of government and enhanced financial, technical, and capacity support for First Nations.
Federal Funding Awarded
Canada and New Brunswick Invest Water and Sewer Infrastructure
The Government of Canada, along with provincial and municipal partners, is investing a combined $1.1 million to upgrade water and sewer infrastructure in Campbellton, New Brunswick. These improvements include replacing watermains and storm sewers and enhancing water quality and system connections. This project is part of broader efforts to address Canada’s housing shortage by enabling construction, promoting partnerships, and supporting affordable housing through programs like the Canada Housing Infrastructure Fund and the Build Canada Homes initiative.
Canada and New Brunswick Invest in Housing Growth
Through the Canada Housing Infrastructure Fund (CHIF), the federal government is contributing over $890,000, alongside more than $593,000 from the province and over $296,000 from the municipality, to upgrade water, stormwater, and sewer infrastructure needed to support faster housing development. The project will replace and relocate aging sewer systems and upgrade water distribution and stormwater networks, including installing new pipes, manholes, hydrants, and service connections, as well as restoring roads. These improvements are expected to enable the construction of up to 40 new housing units.
Governments Support Hamilton Transit
The City of Hamilton has expanded its public transit capacity with the opening of the new Birch Transit Centre, a $390.4-million maintenance and storage facility for the Hamilton Street Railway (HSR). The project was funded by all three levels of government, including $142.8 million from the Government of Canada, $92.6 million from the Government of Ontario, and $155 million from the City of Hamilton.
Canada Invests Wastewater Infrastructure in Rural Municipalities
Through the Build Communities Strong Fund, more than $1.2 million in federal funding is being provided through the fund’s Direct Delivery stream to expand and upgrade the wastewater lagoon system in the rural municipality of St. Laurent. The project will enhance treatment capacity, modernize wastewater infrastructure, and improve environmental safeguards. These upgrades will help prevent wastewater overflows, protect local water sources and farmland, ensure dependable services for residents, and enable future housing development, contributing to stronger and more resilient communities.
Governments Invest in Public Transit in Coburg and Port Hope
Federal, provincial, and municipal governments are jointly investing in public transit improvements in Cobourg and Port Hope to enhance service quality and sustainability. In Cobourg, nearly $1.2 million will fund three new gasoline-powered buses equipped with contactless payment systems, the construction of a transit operations office, and accessibility upgrades at 10 bus stops. In Port Hope, over $560,000 has been used to replace three aging transit vehicles. Together, these investments aim to improve the reliability, accessibility, and overall efficiency of transit services, making it easier for residents to travel while supporting more sustainable transportation options.
