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Big city mayors call for faster federal infrastructure funding to keep housing projects on track

Ontario Conastruction News staff writer

Mayors from Canada’s largest cities are urging the federal government to accelerate the flow of infrastructure funding, warning that delays could stall housing and transit projects during the upcoming construction season and drive up costs at a critical moment for the economy.

Members of the Federation of Canadian Municipalities’ Big City Mayors Caucus (BCMC) raised the issue earlier this week during a meeting with the Prime Minister, where they outlined steps municipalities are already taking to speed up approvals and reduce barriers to construction. Mayors said those local efforts risk being undermined if federal dollars do not reach cities quickly enough.

According to the caucus, existing federal infrastructure programs often fail to align with the pace and scale of municipal needs, creating a gap between national housing and economic goals and the ability of cities to deliver projects on the ground.

“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,” BCMC chair Josh Morgan said in a statement. “Canada’s housing and trade goals depend on enabling infrastructure and reliable transit in the cities where growth is happening. Housing targets require infrastructure capacity to match.”

The mayors pointed to the community stream of the Building Communities Strong Fund—formerly the Canada Community-Building Fund—as a proven mechanism for getting federal infrastructure money to municipalities quickly. Unlike other programs, the fund provides predictable, direct transfers that allow cities to advance projects without lengthy approval processes or complex bilateral agreements.

“The community stream is the only national program that gets federal dollars working in cities right away and it needs to be better leveraged,” Morgan said, adding that funding must arrive in time and at a scale that reflects on-the-ground needs.

As part of its discussions with the federal government, FCM put forward recommendations to keep infrastructure projects moving:

  • Increase the community stream of the Building Communities Strong Fund. This is the most direct and proven way to get local projects started quickly.
  • Develop a long-term national infrastructure plan. Canada needs a coordinated plan that supports housing, trade, and economic growth.
  • Strengthen supports for vulnerable residents. Work with provinces and territories to improve supportive housing, mental health services, and community-based policing.
  • Renew the federal–provincial–municipal funding partnership. Modernize how local governments are funded in line with growing responsibilities.
  • Protect and streamline transit funding. Reverse the $5-billion cut to the Canada Public Transit Fund to support affordability and reduce congestion that limits trade and business in cities.

In addition to infrastructure, BCMC mayors discussed public safety with the Prime Minister, describing it as a growing concern across Canadian cities. They expressed support for the passage of Bill C-14, which would tighten bail provisions for violent repeat offenders, and signalled a willingness to work with Ottawa on emerging challenges such as extortion.

The caucus said local leaders are ready to collaborate with the federal government on practical solutions that keep infrastructure projects moving and maintain momentum on housing, transit and other investments tied to affordability and productivity.

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