Download PDF

Canada’s “Build Communities Strong Fund” now live

April 2026

On 7 April 2026, the Government of Canada officially launched the Build Communities Strong Fund (“BCSF”). Announced in Budget 2025, backed by substantial federal investment, and tied to broader legislative reforms, the BCSF will provide CAD $51 billion over 10 years, starting in 2026-27 and CAD $3 billion per year ongoing via three streams of funding for designated infrastructure projects to support housing, sport, education, health, transit, and climate adaptation.

The first tranche of projects supported by the BCSF has now been published, with 13 projects supported across all provinces and territories of Canada (with the exception of Newfoundland).

Implications for stakeholders

For participants in the construction, development, and infrastructure sectors, the BCSF presents both opportunities and considerations:

• Developers and contractors may benefit from reduced upfront costs and faster project approvals
• Municipalities will need to align infrastructure planning with funding requirements and timelines
• Indigenous and rural communities are positioned to receive targeted investments that address critical infrastructure needs

As discussed below, access to funding will depend on compliance with federal conditions, including bilateral agreements and allocation requirements.

Funding streams

The BCSF has three streams of funding:

1. Provincial and territorial

The provincial and territorial stream allocates $17.2 billion over 10 years through bilateral agreements to support provincial and territorial infrastructure related to housing, health, and education.

Allocated funding includes:

• Ontario: $6 billion
• Québec: $3.6 billion
• British Columbia: $2.2 billion
• Alberta: $1.9 billion
• Manitoba: $698 million
• Saskatchewan: $610 million
• Nova Scotia: $542 million
• New Brunswick: $461 million
• Newfoundland and Labrador: $352 million
• Prince Edward Island: $204 million
• Northwest Territories: $156 million
• Yukon: $156 million
• Nunavut: $155 million

Funding is contingent on provinces and territories entering into agreements with the federal government.

2. Direct delivery

The direct delivery stream will provide $6 billion over 10 years to support “regionally significant” projects, including large building retrofits, climate adaptation, and community infrastructure.

Private sector investment, including through the Canada Infrastructure Bank, is highly encouraged within this stream.

Eligible project proponents can send their initial expressions of interest for shovel-ready projects to canadastrong-canadafort@infc.gc.ca.

3. Community

The community stream will provide $2.5 billion each year to support local infrastructure priorities across 19 project categories, including local roads, bridges, public transit, water systems, and community centres.

The Community stream is a predictable and indexed source of funding provided up front to provinces and territories who flow the funding down to their communities. This allows for these communities to make strategic investments in essential infrastructure, such as roads and bridges, public transit, drinking water and wastewater infrastructure, and recreational facilities.

Housing supply and cost reduction measures

The BCSF is closely tied to Canada’s broader housing strategy. A recent agreement with Ontario illustrates how the fund will operate in practice: measures to reduce development charges and taxes on new housing are expected to lower costs by as much as $200,000 per unit.

Targeted funding requirements

The fund includes mandatory allocation thresholds to ensure equitable distribution:

• At least 20% of provincial and territorial funding must support projects in rural, Northern, and Indigenous communities
• Under the direct delivery stream, a minimum of 10% must be allocated to Indigenous-led projects

These requirements reflect a policy emphasis on inclusive growth and addressing long-standing infrastructure gaps in underserved regions.

Legislative framework

The rollout of the BCSF is supported by recent federal legislation:

• Budget Implementation Act, 2025, No. 1 (Bill C-15), which has received Royal Assent, establishes the broader fiscal and policy framework to support economic growth and infrastructure investment
• Bill C-26, introduced in March 2026, proposes $1.7 billion in immediate funding to provinces and territories to accelerate housing supply. This includes:
  • Reducing development fees and levies
  • Expanding existing provincial and territorial housing programs

These legislative measures signal a coordinated approach between fiscal policy and infrastructure delivery.

Conclusion

The Build Communities Strong Fund represents a transformative investment in Canada’s infrastructure and housing systems. By combining long-term funding with targeted policy measures and legislative support, the federal government aims to accelerate development, reduce costs, and create sustainable economic growth.

Stakeholders should closely monitor the implementation of bilateral agreements and evolving programme criteria to fully leverage the opportunities presented by this initiative and reach out to Sherry Hussain if they have questions.

Download PDF