Prime Minister Mark Carney has officially launched the $51-billion Build Communities Strong Fund aimed at accelerating infrastructure development and housing-enabling projects across Canada.

The fund is part of the 2025-2026 federal budget, set to roll out investments over the next decade and designed to provide a major response to growing pressures on housing supply and core infrastructure. The program will support the construction of hospitals, post-secondary facilities, community centres, transit systems, and water infrastructure nationwide.

“Canada’s new government is on a mission to build big things, including the local infrastructure that brings Canadians together,” said Canada. “With the Build Communities Strong Fund, we are partnering with provinces and territories to move projects forward, reduce barriers to building, and deliver the housing and infrastructure Canadians need – from hospitals and transit lines to bridges and community centres. We are building communities strong to build Canada strong for all.”

The first project under the fund is a $64-million investment in the Embleton Community Centre and Park in Brampton, Ont., a 175,000-square-foot facility that will include a pool, gymnasium, fitness centre, childcare space and outdoor recreational amenities. It is one of 13 initial projects in the first investment tranche backed by $300 million in federal funding.

Other first-tranche projects include more community centres, housing developments and sewer lines.

Ottawa says the fund will leverage nearly $17 billion in provincial contributions, along with further investment from municipalities, territories and private partners. The initiative is projected to support an average of 42,000 jobs annually and boost Canada’s GDP by $95 billion over the next decade, said the federal government.

The program will deliver funding through three streams: $17.2 billion for provinces and territories to support major infrastructure projects, $6 billion for direct federal delivery of regionally significant initiatives, and $27.8 billion for community-level infrastructure such as roads, bridges and water systems. Provinces will be required to match federal funding and take steps to reduce construction costs, including lowering development charges that hinder housing projects.

A Buy Canadian policy will apply to the fund, with the goal of directing more public spending toward domestic industries and job creation.

The Federation of Canadian Municipalities, an umbrella group for local governments across the country, welcomed the fund’s launch.

“Public infrastructure is the roads, bridges, and pipes that move people and goods, keep businesses running, and make new housing possible,” said FCM. “It is Canada’s economic backbone and a practical foundation for growth, trade, and everyday life.”

The fund is positioned as the primary vehicle for delivering much need infrastructure funding across Canada, said FCM. The launch signals that local infrastructure is essential to Canadian and also shows what can be accomplished when the federal and local governments can accomplished, FCM added.

“Municipal infrastructure is where people feel progress first,” said FCM President Rebecca Bligh, who is also a Vancouver city councillor. “It is clean water when you turn on the tap, safer roads on the way to work, and the capacity a neighbourhood needs to support new homes.

“Municipalities are working with the federal government to deliver infrastructure projects this construction season. We stand ready to ramp up delivery in partnership with the federal government.”

FCM said fund’s direct delivery stream will allow shovel-ready projects to move quickly this construction season. The group was glad to see that Ottawa provided the direct-delivery intake process, which municipalities had requested. The streamlined direct-delivery approach will help communities move projects from approval to construction as quickly as possible, FCM added.

But FCM said new fund’s community stream, formerly known as the Canada Community Building Fund, remains the “bedrock” for turning federal commitments into immediate infrastructure serving communities.

FCM also renewed its call for the community stream increased and indexed to GDP so that municipalities can plan, tender and build projects faster. The group also continued to call for more infrastructure funding for rural and northern communities.

“Communities need a reliable, predictable way to deliver projects quickly and keep them moving,” said Bligh. “If we strengthen the community stream and ensure rural and northern communities can access funding in a meaningful way, we can build at the pace and scale Canadians are counting on.”