Big City Mayors Push for Faster Federal Funding to Keep Housing Projects Moving

UTES Design and Build Team • February 13, 2026

Delays in Funding Threaten Housing Starts, Transit Expansion, and Local Construction Momentum

Canada’s largest cities are calling on the federal government to speed up infrastructure funding, warning that continued delays could stall housing and transit projects during this year’s construction season, driving up costs and undermining national housing goals.


At a recent meeting with the Prime Minister, members of the Federation of Canadian Municipalities’ Big City Mayors Caucus (BCMC) stressed that municipalities are already streamlining approvals, cutting red tape, and removing local barriers to construction. But without timely federal support, these efforts won’t be enough to keep crucial housing and transit projects moving.


Why Mayors Are Pushing for Faster Federal Action


According to BCMC, current federal infrastructure programs often don’t match the pace or scale of municipal needs, leaving cities unable to move projects forward at the speed required to tackle the housing crisis.


BCMC Chair Josh Morgan summarized the urgency:

“Housing targets require infrastructure capacity to match… We need to work together to get shovels in the ground this season.”


Cities argue that they cannot meet federal housing targets, including supporting new density and transit‑oriented development, without faster access to funds that support roads, utilities, sewer capacity, transit service, and community infrastructure.


A Proven Tool: The Community Stream of the Building Communities Strong Fund


Mayors highlighted the community stream of the Building Communities Strong Fund (formerly the Canada Community‑Building Fund) as a model that works:


  • Provides direct, predictable transfers to municipalities
  • Avoids lengthy federal approval processes
  • Allows cities to advance projects immediately
  • Helps prevent delays that increase construction costs


BCMC is calling for the federal government to increase funding to this stream and use it as the primary means of supporting rapid housing‑related infrastructure.


Recommendations From Canada’s Big City Mayors


To keep critical projects on track, FCM and the mayors outlined several actions for the federal government:


1. Increase the Community Stream of the Building Communities Strong Fund

The fastest, most reliable way to get funding directly into local projects.


2. Develop a Long‑Term National Infrastructure Plan

Canada needs a coordinated strategy aligned with housing, trade, and economic growth.


3. Strengthen Supports for Vulnerable Residents

Invest in supportive housing, mental health services, and community‑based policing.


4. Renew the Federal–Provincial–Municipal Funding Partnership

Modernize municipal funding to reflect growing responsibilities.


5. Protect and Streamline Transit Funding

Reverse the $5‑billion cut to the Canada Public Transit Fund to prevent congestion and support housing growth near transit.


Public Safety Also Front of Mind


Beyond infrastructure, mayors raised public safety concerns, including supporting Bill C‑14, which tightens bail provisions for violent repeat offenders, and signaled a willingness to work with the federal government on emerging threats such as extortion.


How Does This Affect You?


Homeowners


  • Faster infrastructure funding supports community improvements, stable property values, and better transit access.
  • Quicker municipal approvals and funding pipelines can speed up residential construction in growing areas.


Builders & Developers


  • Infrastructure delays can halt or slow projects, but accelerated federal funding could unlock stalled sites, particularly near transit.
  • Improved local servicing capacity (water, sewer, transit) supports more multiplex, mid‑rise, and mixed‑use development.


Commercial Property Owners


  • Transit investments and infrastructure upgrades increase foot traffic, support business growth, and make commercial projects more attractive.
  • Predictable funding improves development feasibility in transit‑oriented corridors.


UTES Design & Build: Supporting Housing and Infrastructure Growth


Infrastructure readiness plays a major role in what can be built, when, and where. At UTES Design & Build, we help clients navigate these changing conditions with:


  • Integrated architecture and structural engineering
  • Expertise in multiplex, laneway, townhouse, and mixed‑use design
  • Strategic planning that adapts to local funding, zoning, and servicing conditions
  • Efficient project delivery that aligns with evolving municipal and federal priorities


Whether you're planning a custom home, secondary suite, mid‑rise infill, or commercial project, UTES ensures your design is ready to move the moment approvals and infrastructure capacity allow.

Contact us today to discuss how shifting infrastructure funding may influence your next project, and how to plan proactively.


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