Ottawa Report – September 2026

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The next edition of the Ottawa Report is scheduled to be sent at the end of October.

Latest News

CPWA Engages with Housing Infrastructure Communities Canada (HICC)

CPWA members met with HICC leadership to discuss the implementation of Buy Canadian policies and their impacts on municipalities and public works professionals. The discussion focused on key considerations including procurement requirements, implementation flexibility, and interprovincial sourcing challenges for major purchases. HICC was receptive to member feedback, and both organizations agreed to maintain regular engagement to ensure municipal perspectives continue to inform federal policy development and implementation.

New National Climate Report Supports Infrastructure Resilience Planning

Environment and Climate Change Canada released Canada’s Changing Climate Report 2026, a five-year scientific assessment intended to inform planning, adaptation, and emergency preparedness. The report brings together peer-reviewed evidence on observed and projected changes in temperature, precipitation, the water cycle, oceans, snow and ice, and extreme events. It provides foundational information for the National Adaptation Strategy and for governments, infrastructure owners, and communities integrating climate risks into investment and asset management decisions. The federal government reports committing more than $2.1 billion to implementing the National Adaptation Strategy and related adaptation activities.

Canada Water Agency and Philanthropic Partners Advance Water Security

The Canada Water Agency and the Canada Water Security Funders Group signed a memorandum of understanding establishing a framework for collaboration on freshwater data, innovation, water literacy, watershed governance, and potential co-investment opportunities. The partnership will also provide a forum for philanthropic participation in developing Canada’s National Water Security Strategy. Members of the funders group collectively steward more than $2.4 billion in assets, although that figure is not a new funding commitment under the agreement. The work is intended to align public, private, philanthropic, and Indigenous-led efforts related to watershed planning, freshwater stewardship, and community resilience.

Tariff Remission Process

Finance Canada has published the process for requesting tariff remission following the introduction of Canadian counter-tariffs of 15, 25, and 50 percent on select US goods. Companies registered in Canada may seek exceptional relief when required inputs cannot reasonably be sourced in Canada or from non-US suppliers, or when tariffs create other exceptional circumstances with severe economic consequences. Applicants must provide tariff classifications, import values, sourcing evidence, contracts where relevant, cost and pricing information, employment and investment impacts, and information about Canadian competitors. Finance Canada assesses each request, may consult domestic producers, and makes recommendations to the Minister of Finance.

Parliamentary Business

Federal Response Outlines PFAS Water and Cybersecurity Measures

The government’s response to the House of Commons freshwater report details federal work on PFAS, water services, community resilience, and infrastructure cybersecurity. Restrictions strengthened in June 2026 for three previously assessed PFAS subgroups, while broader measures for the PFAS class, excluding fluoropolymers, remain subject to a proposed Schedule 1 order and phased policy development. The response reports more than $3.1 billion committed since 2016 to nearly 2,100 drinking water projects and describes infrastructure programs that support water, wastewater, stormwater, asset planning, and natural infrastructure. It also identifies cybersecurity support available to critical infrastructure operators through the Cyber Security Cooperation Program and the Canadian Centre for Cyber Security. The Critical Cyber Systems Protection Act initially applies to four federally regulated sectors but permits federally regulated water systems to be added when they are vital to national security or public safety. The government response reflects a comprehensive approach to freshwater protection, combining regulatory action on contaminants such as PFAS with investments in water infrastructure, community resilience, and cybersecurity measures designed to safeguard critical water systems.

Government Funding

Canada Invests in the Mackenzie Valley Highway

The federal government announced $405 million through the Arctic Infrastructure Fund to advance the proposed Mackenzie Valley Highway in the Northwest Territories. The investment will support environmental assessment and design work between Wrigley and Norman Wells, construction of the Great Bear River Bridge near Tulita, a six-kilometre second phase of the Prohibition Creek Access Road, and preliminary engineering for Liard River and Mackenzie River bridges on Highway 1. The work advances the long-term objective of a continuous all-season transportation connection and is intended to improve community resupply, emergency access, supply-chain reliability, and northern security.

Canada Invests in the Rankin Inlet Airport

Transport Canada announced $85.5 million through the Arctic Infrastructure Fund for the Rankin Inlet Airfield Rehabilitation Project in Nunavut. The work will rehabilitate approximately 141,000 square metres of runway, taxiway and apron pavement, improve safety and capacity, and extend the airfield’s service life by an estimated 15 to 20 years. The airport supports passenger travel, community resupply, emergency and medevac services, and regional logistics. Its runway can also accommodate military aircraft, making the project part of the government’s broader approach to dual civilian and defence infrastructure in the Arctic.

Parks Canada Invests in Cape Breton and Canso

Parks Canada announced close to $130 million for critical infrastructure and heritage assets across Cape Breton/Unama’ki and Canso. The portfolio includes roadway and bridge improvements on the Cabot Trail, rehabilitation and rerouting of trails affected by extreme weather, parking upgrades, retaining wall stabilization, and improvements to visitor and operational infrastructure. Funding also supports conservation work at the Alexander Graham Bell National Historic Site and projects at the Fortress of Louisbourg, Canso Islands, and St. Peters Canal national historic sites. The investments are intended to improve public safety, climate resilience, and the condition of nationally significant assets.

Mississauga Receives Housing Enabling Infrastructure Funding

Canada and Ontario announced up to $401.4 million for housing-enabling infrastructure in Mississauga in recognition of the city’s reduction of residential development charges. Subject to government agreements and due diligence, funding would support a zero-emission transit maintenance and storage facility and integrated downtown transit infrastructure, including a mobility hub, transitway connections, bus platforms, pedestrian and cycling facilities, and utility relocations. Mississauga estimates that the development charge reductions and infrastructure investments could help unlock 90,000 homes. The program links infrastructure support to municipal action intended to reduce the cost of new residential development.

Canada and New Brunswick Finalize Major Infrastructure Agreement

The governments of Canada and New Brunswick finalized a $461.4 million federal agreement under the provincial and territorial stream of the Build Communities Strong Fund. More than $305 million will support infrastructure priorities related to housing and post-secondary education over 10 years, while more than $155 million will support health infrastructure over three years. New Brunswick will provide matching funding for eligible municipal and provincial projects. At least 20 percent of the stream’s allocations are directed to rural, northern, and Indigenous communities, and the province has committed not to increase fees or taxes that hinder housing supply.

Federal Funding Supports Rural Transit Projects Across British Columbia

The federal government is investing more than $10.6 million through the Rural Transit Solutions Fund for projects in Pemberton and 12 other British Columbia communities. Pemberton will develop an accessible multimodal hub with a transit station, shelters, sidewalks, lighting, bike facilities, parking, and space for future electric vehicle charging. Other recipients will use the funding for vehicles, service planning, maintenance garages, shelters, and charging infrastructure. The projects are intended to expand fixed-route and on-demand services and improve connections to employment, health care, education, and other essential services in rural, remote, and Indigenous communities.

Canada and Winnipeg Invest in the Rutland Trunk Sewer

The federal government will provide up to $27.16 million through the Build Communities Strong Fund for Winnipeg’s Rutland Trunk Sewer project, while the city will contribute approximately $42.2 million. The project will construct approximately two kilometres of land-drainage trunk sewer in the Ferry Road combined sewer district. The new infrastructure will increase drainage capacity, support sewer separation, reduce basement flooding risks, and lower combined sewer overflow volumes entering the Red and Assiniboine rivers. The investment is intended to improve urban flood resilience and protect downstream water quality in Lake Winnipeg.

North Calgary Water Project Receives Federal and Municipal Funding

The federal government is investing up to $29 million and the City of Calgary is contributing $94 million to the first stage of the North Calgary Water Servicing project. The stage will construct seven kilometres of feeder main and upgrade the Top Hill Reservoir, Big Hill East Reservoir, and Mountain View Pump Station. The work will connect two existing reservoirs, add system redundancy, and increase pumping capacity by 30 million litres per day. The additional capacity is intended to support existing communities, planned densification, and new development in north Calgary and surrounding areas.

Northwest Territories Receives Water and Waste Infrastructure Funding

The federal government announced more than $44.9 million through the Canada Housing Infrastructure Fund for 18 projects across the Northwest Territories. The investments will upgrade water treatment plants, reservoirs, distribution systems, wastewater infrastructure, water intakes, lift stations, and solid waste facilities in 14 communities. The projects are expected to help preserve existing housing and enable construction of up to 2,300 additional units. They form part of a broader nine-year federal-territorial agreement providing more than $74.2 million for drinking water, wastewater, and solid waste infrastructure that supports housing development.

Oromocto Wastewater Investment Supports Future Housing Growth

Canada, New Brunswick, and the Town of Oromocto announced a combined investment of more than $16.2 million for new wastewater infrastructure. The project will design and construct a lift station, force main, and connecting works to transfer wastewater to the Base Gagetown treatment facility. Canada will contribute more than $8.1 million, New Brunswick more than $5.4 million, and Oromocto more than $2.7 million through the Canada Housing Infrastructure Fund. The expanded treatment capacity is intended to accommodate expected population and housing growth in a community that also supports one of Canada’s largest military bases.

Selwyn Receives Funding for Water and Wastewater Upgrades

The federal government is investing up to $3.94 million through the Build Communities Strong Fund for water and wastewater infrastructure in Selwyn, Ontario. The project will upgrade two sections of sewer infrastructure and install a twin force main beneath the Otonabee River in the Lakefield South Development Area. The improvements are intended to maintain reliable wastewater service, reduce the risk of overflows, strengthen fire protection, and provide additional capacity as the community grows. Federal funding remains subject to a contribution agreement and applicable consultation and environmental assessment requirements.