Canada risks stalling nation-building without strong local infrastructure
Canada NewsWire
OTTAWA, ON, Oct. 30, 2025
OTTAWA, ON, Oct. 30, 2025 /CNW/ - The federal government's plan to restore housing affordability by building 500,000 homes annually—and to grow the economy by boosting and securing supply chains—hinges on one thing: strong local infrastructure. Without it, Canada risks stalling nation-building before it even starts.
"You can't build homes, move goods, or keep Canada competitive without strong local infrastructure," said FCM President Rebecca Bligh. "Every shipping container starts and ends its journey on a municipal road. Every new home needs water, transit, and emergency services. Without serious investment in local infrastructure, we risk nation-building stalling before it starts."
This was the message delivered during the Federation of Canadian Municipalities' (FCM) annual Advocacy Days, where local leaders from across the country met with federal decision-makers to advance shared priorities on Parliament Hill. This year's event included over 90 meetings with ministers, MPs, and senior officials, and brought together close to 200 local leaders representing communities of all sizes.
Local governments own more than 60 percent of Canada's core public infrastructure—roads, bridges, water systems, and transit—yet only receive just 8 to 10 cents of every tax dollar. With a national infrastructure deficit estimated at $270 billion, municipalities are calling for urgent federal action to modernize the systems Canadians rely on every day.
FCM is calling for federal action on three strategic priorities:
- Support core infrastructure by doubling the Canada Community-Building Fund and indexing it to GDP growth and secure matching dollars from the provinces and territories.
- Advance nation-building by launching a NextGen infrastructure program to follow the $33 billion Investing in Canada Infrastructure Program, which ends in 2028. This successor should include targeted investments in rural, Northern, and Arctic infrastructure to support local economies and protect Canada's sovereignty.
- Protect and grow essential municipal programs that support our most vulnerable and that communities rely on to tackle local growth including homelessness, welcome newcomers and keep people moving. These programs like Reaching Home, the Interim Housing Assistance Program, and the Canada Public Transit Fund are vital to building a stronger, more resilient Canada.
"Nation-building starts in communities," added Bligh. "If we want to build more homes, grow the economy, and protect Canadians from climate shocks, we need predictable federal investment to support people through the transitions ahead. Municipalities are ready to deliver, but we need federal investment to match that readiness."
But without a sustained federal-municipal partnership, Canadians risk losing out. With Budget 2025 right around the corner, FCM is calling for action to fix local infrastructure, tackle homelessness and make housing more affordable. These are the building blocks of a stronger, more resilient Canada — and the road to a stronger economy leads through our communities.
The Federation of Canadian Municipalities is the national voice of municipal governments, with over 2,000 members representing more than 90 per cent of the Canadian population.
SOURCE Federation of Canadian Municipalities (FCM)