Increased federal funding for infrastructure projects in small communities

News Release

Ottawa, Ontario, February 16, 2018 The Government of Canada is committed to making investments that will help create jobs and grow the middle class now, while building a strong foundation for a sustainable economic future.

The Honourable Amarjeet Sohi, Minister of Infrastructure and Communities, today announced that the Government of Canada is increasing the maximum federal contribution for eligible infrastructure projects in provincial communities with fewer than 5,000 residents. This is great news for over 3,000 small municipalities across Canada that could benefit from today’s announcement. It means that these communities will be eligible to receive a higher proportion of federal funding for projects submitted under the rural and northern infrastructure stream, which was established specifically to address the unique infrastructure needs of Canadians living in these communities.

The federal cost share will increase from 50% to 60% for municipal projects in the provinces, while Indigenous communities in the provinces will be eligible for a federal cost share of up to 75%. All communities in the three territories will remain eligible for a federal cost share of up to 75%. Eligible projects fall under the rural and northern communities’ infrastructure stream of the Investing in Canada plan, which includes projects such as facilities that support food security, local roads, renewable energy and enhanced broadband connectivity.

The increased federal cost share will help Canadians living in small communities across Canada address their unique and wide ranging infrastructure priorities, improve sustainability and increase economic opportunities.

The funding will be made available through new bilateral agreements that are currently under negotiation between Infrastructure Canada and each of the provinces and territories as part of the Investing in Canada plan. The agreements are expected to be signed by spring 2018, opening the door to new project approvals.


“By increasing the federal cost-share for smaller communities, we will support the unique and wide-ranging infrastructure priorities of small, rural and remote communities. Through the Government of Canada’s Investing in Canada plan, we will invest more than $180 billion in infrastructure over 12 years in communities across Canada. Today’s announcement means that Canadians living, working and raising families in those communities will enjoy increased opportunities, and a more sustainable economic future.”

The Honourable Amarjeet Sohi, Minister of Infrastructure and Communities

Quick Facts

  • The Government of Canada will invest more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities’ infrastructure.

  • Infrastructure Canada is currently negotiating new bilateral agreements with provinces and territories that will make over $33 billion available over the next decade to support Canadian communities’ diverse needs.

Associated Links


Brook Simpson
Press Secretary
Office of the Minister of Infrastructure and Communities

Infrastructure Canada
Toll free: 1-877-250-7154
Twitter: @INFC_eng
Web: Infrastructure Canada

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