The federal and Alberta governments have signed a new infrastructure funding agreement aimed at addressing one of the biggest barriers to housing development: aging municipal infrastructure.
Announced Wednesday in Red Deer, the eight-year agreement will see the federal government invest more than $510 million through the Canada Housing Infrastructure Fund (CHIF) to help municipalities expand or upgrade drinking water, wastewater, stormwater, and solid waste systems. Provincial officials say the improvements are intended to support Alberta’s target of adding 25,000 affordable homes by 2031.
Under the agreement, Alberta will contribute at least one-third of eligible costs for municipal projects. The province also committed to directing a minimum of $100 million toward infrastructure projects serving rural and Indigenous communities.
The announcement comes as Alberta continues to experience rapid population growth, placing increased pressure on municipal infrastructure and housing supply. Many municipalities have identified limited water and wastewater capacity as a major obstacle to approving new residential developments.
Prime Minister Mark Carney said governments need to work together to ensure communities have the infrastructure required to support new housing and economic growth.
“Communities cannot build the homes people need without reliable infrastructure,” Carney said, adding that collaboration between governments is intended to remove barriers to development while supporting long-term economic growth.
Premier Danielle Smith said investments in essential municipal services are necessary to accommodate Alberta’s expanding population and future housing needs.
“Water, wastewater and other core infrastructure form the foundation of every growing community,” Smith said. “Strengthening those systems will help municipalities prepare for continued growth.”
According to the agreement, Alberta will submit an initial group of eligible projects seeking at least $25 million in federal funding by November 30, 2026, with additional projects expected to be submitted before March 31, 2030.
Federal Housing and Infrastructure Minister Gregor Robertson said infrastructure investments are designed to help municipalities move stalled housing projects forward while improving long-term housing capacity.
He said the initiative complements broader federal housing programs intended to increase the supply of homes through partnerships with provincial governments, municipalities and the private sector.
The agreement is part of the federal government’s wider housing strategy, which includes investments through Build Canada Homes and infrastructure funding intended to support residential construction across the country.
The latest agreement focuses specifically on infrastructure capacity, with both governments stating that upgraded municipal systems are expected to help communities accommodate future residential growth.
Projects approved under the agreement will be implemented over the next several years as municipalities identify local infrastructure priorities and complete federal and provincial approval processes.
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