Ahead of the Spring Economic Update (SEU), local governments are looking for the federal government to pick up the pace on investments that help communities deliver housing, infrastructure, transit and homelessness response, says the Federation of Canadian Municipalities (FCM).

"Federal housing and trade goals depend on local infrastructure, and municipalities have limited capacity to invest at the pace required. The SEU can reduce delivery risk by streamlining funding now, protecting transit, and renewing the National Housing Strategy with a stronger focus on preventing and ending homelessness," said FCM President Rebecca Bligh.

FCM recommends the federal government prioritize the following:

• Accelerate local infrastructure investments under the Community Stream and Direct Delivery Stream of the Build Communities Strong Fund (BCSF) by moving existing funding commitments proposed in Budget 2025 more quicky.
• Ensure small and rural municipalities can access funding by establishing a dedicated intake for rural and northern infrastructure projects.
• Reverse cuts to the Canada Public Transit Fund and prioritize streamlined mechanisms like the baseline stream, while continuing to invest in major projects and rural, active transportation and zero-emissions initiatives.
• Make homelessness prevention and response a priority when renewing the National Housing Strategy, using a housing-first approach, including topping up essential programs like Reaching Home, with the primary aim of ensuring our most vulnerable are not left behind.
• Explore alternative municipal fiscal tools such as tax-exempt municipal bonds and other mechanisms to help unlock private capital, lower borrowing costs, and deliver infrastructure more efficiently.

Municipalities stand ready to work with the federal government to ensure the SEU and the implementation of Budget 2025 reflect the critical role communities play in delivering national priorities. With the right partnership, local governments can accelerate progress on housing, infrastructure and economic growth in communities of all sizes.