On November 4th, the federal government released Budget 2025, entitled Canada Strong. The document leaves no doubt that strong local infrastructure is fundamental to Canada’s economic future. From housing supply to productivity, trade diversification to community wellbeing, the federal government has signaled that cities, towns, and rural municipalities are where national goals become real outcomes. For municipal leaders working to build safe, connected, and competitive communities, that recognition matters.

A Budget Grounded in Local Realities

The federal budget highlights a central truth long understood by municipal leaders: local infrastructure powers Canada’s economy. Roads, transit networks, water systems, community facilities, shelters, and public services aren’t simply local amenities—they are economic drivers, job creators, and essential public goods.

Among the headline announcements is the $51-billion Build Communities Strong Fund (BCSF). While a significant portion reflects reprofiled dollars originally promised in earlier plans, the commitment provides early funding momentum as municipalities ramp up efforts to meet ambitious targets, including building 500,000 homes per year across Canada. This infusion—though partially already accounted for in municipal planning—signals stability at a time when long-term certainty is needed most.

Budget 2025 isn’t just about construction. It’s about capacity. Reliable funding enables municipalities to move goods efficiently, support employers, and connect residents to work, learning, and essential services. It ensures that communities aren’t simply building houses—they’re building communities where health, safety, and opportunity are within reach for everyone.

Investments with Local Impact

Several measures stand out for their potential to accelerate municipal progress:

• $6 billion over 10 years for municipal infrastructure through the Direct Delivery Stream under the Build Communities Strong Fund—support that allows municipalities to prioritize local needs.
• $12.2 billion for infrastructure projects tied to provincial and territorial cost-matching, including housing-enabling infrastructure. Importantly, this approach recognizes the need for provincial flexibility in development charges policy—reflecting long-standing municipal advocacy.
• $5 billion over seven years for trade corridor diversification, opening new avenues for municipalities—large and small—to support regional and national competitiveness.

Municipal leaders will also welcome the continued use of federal-provincial/territorial delivery mechanisms, including leveraging proven channels like the Canada Community-Building Fund (now rebranded as the Community Stream of the BCSF). Stability and predictability in funding streams allow municipalities to build multi-year project pipelines, address infrastructure deficits, and respond strategically to population growth and climate pressures.

Looking Ahead: Partnership as the Path Forward

Good Roads welcomes Budget 2025 as a step toward a more collaborative, long-term infrastructure strategy. Moving forward, success will depend on consistency, partnership, and predictable funding that allows municipalities to plan confidently and deliver results.

We stand ready to work with the federal government and provincial partners to ensure communities have the tools, funding, and certainty they need. Together, we can build more connected, affordable, resilient communities—and in doing so, strengthen Canada’s competitiveness and quality of life for generations to come.

Read the full budget here.