The Government of Canada released its 2024-2025 budget yesterday, totalling $457 billion in spending and total budgetary expenses of $497 billion, financed by a $40 billion deficit. The budget contains major investments in in housing, infrastructure, and community safety initiatives that will affect municipalities. Some highlights:
- $6-billion Canada Housing Infrastructure Fund with $1 billion for urgent community infrastructure (including water and wastewater management) and $5 billion for conditional agreements with provinces and territories to support long-term priorities
- $400 million top-up to the Housing Accelerator Fund
- Increasing the Rural Transit Fund to $150 million with $3 billion in permanent public transit funding slated for 2026-27
- An additional $500 million over five years for municipal community, culture and recreation facilities through the Green and Inclusive Buildings Program.
- Incentives for health-care professionals to practice in rural communities
- Doubling of the volunteer firefighter and search and rescue tax credits from $3,000 to $6,000, and an additional $800,000 for Natural Resources Canada to help build wildfire fighting capacity and enhance training
- $150 million over three years to support municipalities combatting the opioid crisis
- $238.5 million over six years, starting in 2020-21, and $50 million ongoing for the RCMP’s National Body-Worn Camera Program for frontline officers
- $3.8 billion through the Disaster Mitigation and Adaptation Fund to support projects that are increasing the resilience of communities affected by natural disasters triggered by climate change.
- Investments in Via Rail and Marine Atlantic services, as well as funding to repair and maintain small craft harbours
- CCBF funding of $2.4 billion and $35 billion for the Canada Infrastructure Bank
Discussions around proposed federal-provincial changes to CCBF agreements remain ongoing and the UMNB will continue to advocate and update our members as soon as more information becomes available.
In their recent budget statement, the Federation of Canadian Municipalities notes that “the positive steps taken by Budget 2024 to address current challenges shows meaningful progress but should not overshadow the pressing need for a national conversation on modernizing the funding model for Canadian municipalities. As Canada continues to grow, in order to ensure Canadians have the local services and infrastructure they need, all orders of government should come together to discuss a new Municipal Growth Framework that would provide more effective long-term support for communities.”
The UMNB continues to reinforce with provincial and federal partner governments that collaboration is essential in tackling challenges related to housing, affordability, and infrastructure. More details about the budget are available HERE.