New research by the Federation of Canadian Municipalities (FCM) finds investments in local infrastructure are among the most effective ways to boost Canada's economy, create jobs and increase long-term productivity in the face of uncertainty and a trade war with the United States.  

Developed in collaboration with PSD CityWide Inc., the findings show that every dollar spend on municipal infrastructure generates: 

• About $1.05 in Gross Domestic Product
• More than $2 in overall economic activity
• Seven jobs for every $1 million invested 

A sustained 10-year local infrastructure investment strategy could permanently increase the country's economic output by roughly $17 billion annually.  

These new data points clearly demonstrate why investing in local infrastructure should be a central pillar of the upcoming fall federal budget and Canada's broader strategy to strengthen economic resilience, create jobs and support housing growth amid ongoing trade uncertainty. 

"At a time when Canada is focused on economic growth, municipal infrastructure is one of the smartest investments governments can make," said FCM President Tim Tierney. "Local infrastructure creates jobs today and gives businesses and communities the foundation they need to grow tomorrow. This is an economic strategy, not simply an infrastructure strategy." 

Despite these economic benefits, municipalities continue to face an infrastructure deficit of approximately $240 billion. 

To help close this gap and unlock the economic potential identified in the research, FCM's Budget 2026 recommendations include urging the federal government to make municipal infrastructure investment a cornerstone by: 

• Accelerating and enhancing long-term, predictable funding through the existing and proven Build Communities Strong Fund;
• Addressing Canada's growing infrastructure deficit before it is too late;
• Providing targeted support for rural and northern infrastructure renewal;
• Investing in climate adaptation infrastructure to better protect Canadians from extreme weather and natural disasters, such as wildfires;
• Working with local governments to align infrastructure investments with Canada's broader economic and housing objectives. 

The impact of local infrastructure investments is also highlighted in the 2025-2026 FCM Green Municipal Fund Annual Report, which was released earlier today. Since 2000, GMF-funded projects have contributed $5.6 billion to Canada's GDP, generated $3.1 billion in wages and salaries, and created nearly 60,000 person-years of employment for Canadian workers.