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Guide · Sheet G-415

Infrastructure funding programs

Municipal roads, water and sewer projects rarely run on local tax revenue alone. A handful of federal programs move billions of dollars a year into that infrastructure, each with its own scope, eligible categories and delivery mechanism.

Sheet G-415Checked 2026-09-245 min read8 sources

$51BBuild Communities Strong Fund total, over 10 years starting 2026-27, announced in Budget 20252
$6BCanada Housing Infrastructure Fund total, aimed at drinking water, wastewater, stormwater and solid waste infrastructure that enables housing1
$25BCanada Public Transit Fund total (approximate), over 10 years, per the program’s current official page5

Federal infrastructure funding does not build anything directly; it flows to provinces, territories and municipalities through named programs, each with its own eligible categories, funding streams and application process. For a civil contractor or a municipality planning a capital program, knowing which program actually covers a given project, and whether its intake is still open, matters as much as the project's own merits. See the infrastructure funding directory for the underlying project list this guide draws on.

STA 0+120Canada Housing Infrastructure Fund (CHIF)

CHIF provides $6 billion in federal funding over 10 years specifically for drinking water, wastewater, stormwater and solid waste infrastructure that enables housing1. It runs through two streams: a Direct Delivery stream worth $1 billion over eight years, with intake now closed to all applicants, funding projects between $1 million and $100 million that must be substantially complete by September 20311; and a Provincial and Territorial Agreement stream worth $5 billion over 10 years, with projects due to be substantially complete by September 20331.

STA 0+240Build Communities Strong Fund

Announced in Budget 2025, the Build Communities Strong Fund is the largest of the current programs: $51 billion over 10 years starting in 2026-27, plus $3 billion a year ongoing after that2. It splits into three streams:

Build Communities Strong Fund streams
StreamAmountCovers
Provincial and Territorial$17.2 billion over 10 years2Housing, post-secondary and health infrastructure
Direct Delivery$6 billion over 10 years2Federally delivered projects; online portal now closed
Community$27.8 billion over 10 years2Local roads, bridges, water systems and community centres

The fund launched on April 7, 2026 with a first tranche of 13 projects and $300 million in federal funding3.

STA 0+360The Community stream: local roads, water and sewer

The Community stream is the direct successor to the federal Gas Tax Fund, later the Canada Community-Building Fund, and it is the stream most relevant to everyday municipal civil work, funding local roads, bridges and water systems at over $2.5 billion a year4. It delivers that over $2.5 billion every year to more than 3,700 communities4, covering 19 eligible project categories under 10-year administrative agreements running from April 1, 2024 to March 31, 2034, worth $26.7 billion over that period and indexed at 2% annually4. Because it flows on a per-community formula rather than a competitive application, it tends to fund the steady base of local infrastructure renewal rather than single large signature projects.

STA 0+480Canada Public Transit Fund

The Canada Public Transit Fund's current official page states approximately $25 billion over 10 years for public transit and active transportation, delivered through the Strong Transit Fund, Baseline Funding and Targeted Funding streams5. The program was originally reported at launch in 2024 as a $30 billion fund; the current page's lower figure was not explained on the page itself, so the $25 billion current figure should be treated as the one to plan against until the change is reconciled in an official update.

STA 0+600Investing in Canada Infrastructure Program (legacy)

The Investing in Canada Infrastructure Program (ICIP), the program that preceded the current suite, has delivered over $33 billion through bilateral agreements with provinces and territories6, split across a $20.1 billion Public Transit stream, $9.2 billion Green Infrastructure stream, $1.3 billion Community, Culture and Recreation stream, and $2 billion Rural and Northern stream plus a $400 million Arctic Energy Fund7. All provincial ICIP funding was allocated by March 31, 2023 (territories had until March 31, 2025), and the construction deadline has been extended to October 20337. A project already running under an ICIP agreement stays on that program's terms; new applications go through the current suite of funds above instead.

STA 0+720How the old Community-Building Fund split by province

The most recent published province-by-province breakdown of the predecessor Canada Community-Building Fund covers fiscal 2023-24, ahead of the Community stream rebrand, and gives a sense of relative scale even though it is not current-year data:

Canada Community-Building Fund allocation, fiscal 2023-24
ProvinceAllocation (CAD thousands)
Ontario890,7358
Quebec540,8408
British Columbia305,9098
Alberta266,2148
Manitoba79,1038
Saskatchewan68,2608

Current-year Community stream allocations should be confirmed directly against the program's own page rather than scaled from this older table.

STA 0+840What this means for a project

None of these programs pay a contractor directly; they flow to the province, territory or municipality that then designs, tenders and delivers the actual project, usually through the public tendering process covered elsewhere on this site. For a civil contractor, the practical use of this list is knowing which program a municipality's capital plan is likely drawing on for a given project type — Community stream money for a routine local road or watermain renewal, CHIF or the housing-enabling parts of the Build Communities Strong Fund for a project explicitly tied to new housing-enabling servicing, and the Public Transit Fund for transit-adjacent civil work. See the site servicing process for how a subdivision's own off-site levies interact with this municipal-side funding.

STA 0+960How the money actually flows to a project

Most of these programs move through the same basic chain: the federal government signs a bilateral agreement with a province or territory, that government allocates funding to eligible categories or specific projects (sometimes by formula, sometimes competitively), and the receiving municipality or agency then designs and delivers the project itself, typically funding the balance of cost from its own capital budget, debt, or development levies. A federal program rarely covers the full 100% of a project's cost on its own; cost-sharing formulas vary by program and sometimes by project type, so confirming what share a specific program actually covers, and what the province or municipality is expected to contribute alongside it, is a necessary step before assuming a federal contribution closes a project's funding gap on its own.

Timing matters as much as eligibility. Programs with a fixed intake window, like CHIF's now-closed Direct Delivery stream1, stop accepting new applications once that window closes, while formula-based programs like the Community stream flow on a set schedule tied to the administrative agreement rather than a competitive call. Knowing which type a given program is changes how far in advance a municipality needs to plan its application, and it is worth asking a municipal capital-planning contact directly which program a specific project is already counted against before assuming additional federal money is still available for it.

Questions people ask

What is the largest current federal infrastructure program?

The Build Communities Strong Fund, at $51 billion over 10 years starting in 2026-27, plus $3 billion a year ongoing after that2.

What does the Canada Housing Infrastructure Fund pay for?

Drinking water, wastewater, stormwater and solid waste infrastructure that enables new housing, $6 billion in total across a Direct Delivery stream and a Provincial and Territorial Agreement stream1.

What happened to the federal Gas Tax Fund?

It became the Canada Community-Building Fund and has now been folded into the Community stream of the Build Communities Strong Fund, still delivering over $2.5 billion a year to more than 3,700 communities for local roads, bridges and water systems4.

How much is the Canada Public Transit Fund worth?

The program’s current official page states approximately $25 billion over 10 years5, down from a $30 billion figure reported at the program’s 2024 launch that has not been reconciled on the current page.

Is the Investing in Canada Infrastructure Program still accepting applications?

No. All provincial ICIP funding was allocated by March 31, 2023, with a construction deadline extended to October 20337; territories had until March 31, 2025 to allocate funding7. Projects already under an ICIP agreement continue under that program, but new applications go through the current suite of funds instead.

Sources

  1. Canada Housing Infrastructure FundHousing, Infrastructure and Communities Canada · retrieved 2026-09-24
  2. Build Communities Strong FundHousing, Infrastructure and Communities Canada · page modified 2026-08-13
  3. Prime Minister Carney launches the Build Communities Strong Fund and announces the first tranche of projectsPrime Minister's Office · 2026-04-07
  4. Build Communities Strong Fund Community streamHousing, Infrastructure and Communities Canada · page modified 2026-06-23
  5. Canada Public Transit FundHousing, Infrastructure and Communities Canada · page modified 2026-06-04
  6. Investing in Canada Infrastructure ProgramHousing, Infrastructure and Communities Canada · page modified 2025-01-09
  7. HICC parliamentary briefing: Infrastructure (TRAN committee, May 2024)Housing, Infrastructure and Communities Canada · May 2024 briefing
  8. Canada Community-Building Fund by Province and TerritoryHousing, Infrastructure and Communities Canada · fiscal 2023-24