Investing in Canada Plan

Create long-term econimic growth.
Build inclusive communities.
Support a low carbon, green economy.

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About the Investing in Canada plan

Through the Investing in Canada plan, the Government of Canada is making historic new investments in infrastructure – more than doubling existing funding – to build the cities of the 21st century and provide communities across the country with the tools they need to prosper and innovate. To do this, the federal government is investing more than $180 billion over 12 years in five main infrastructure priorities:

Smart Cities Challenge

Canada Infrastructure Bank

As part of the Plan, the 2014 New Building Canada Fund is being improved to accelerate funding and to increase flexibility in how the funding can be used by communities.

About $3 billion will continue to be made available each year for municipal projects through the Goods and Services Tax Rebate and the federal Gas Tax Fund.

Delivering the long term plan

The Government of Canada's Investing in Canada plan will be delivered by Infrastructure Canada (INFC), along with other federal departments and agencies such as Natural Resources Canada, the Canada Mortgage and Housing Corporation, Employment and Social Development Canada and Transport Canada. Infrastructure Canada is responsible for the overall coordination and reporting on results for the Plan.

Funding delivered through Infrastructure Canada

Progress on Budget 2016 investments

Budget 2016 focused on accelerating federal investments in the short term by providing funding for the rehabilitation, repair, and modernization of existing infrastructure. On April 22, 2016, Minister Amarjeet Sohi wrote to his provincial and territorial counterparts to open the negotiations towards the signature of bilateral agreements. See the letters here. In the following months, the Government of Canada worked closely with all provinces and territories to sign bilateral agreements and funding is now flowing to Canadian communities. Please see the Phase 1 project tracker for more information about these investments.

Details of Budget 2017 investments

Budget 2017 investments are designed to build on Budget 2016 measures and it is clearly outlined the next phase of the Government of Canada's long term plan.

One key element of the Plan is $33 billion in funding delivered through bilateral agreements between the federal government and each of the provinces and territories. This federal investment includes four funding streams to be delivered over the next decade: 

$20.1 billion for public transit;

The Public Transit funding stream will provide a total of $20.1 billion to invest in the construction, expansion, and improvement of public transit infrastructure, including active transportation projects—such as new bike and pedestrian pathways—that connect to public transit hubs. These kinds of investments provide a range of benefits, from reducing air pollution to improving commutes.

Funding for public transit is being allocated according to a formula based on ridership (70%) and population (30%). This blended formula balances demands on existing systems, while providing support for expected population growth. Within each jurisdiction, funding will be further allocated to existing public transit systems based solely on their respective ridership, with some flexibility possible to address regional requirements.

$9.2 billion for green infrastructure;

Reflecting the wide range of infrastructure needs that fall within this category, the Green Infrastructure funding stream is divided into three sub-streams:

  • Climate Change Mitigation—supporting projects such as cleaner energy generation, cleaner transportation initiatives and others that will reduce greenhouse gas (GHG) emissions;
  • Adaptation, Resilience and Disaster Mitigation—helping to make communities more resilient by investing in projects that enable them to better withstand and mitigate the impacts of climate change; and
  • Environmental Quality—building healthier communities through investments in clean, safe drinking water, sewage treatment, and reducing or remediating soil and air pollutants. 

Under the Green Infrastructure stream, each province and territory receives a base amount of $200 million, with the remaining funds allocated according to population, using 2016 Statistics Canada Census data.

$1.3 billion for community, culture and recreation infrastructure;

Recognizing the role that engaged, active citizens play in assuring the strength of our communities, the Community, Culture and Recreation Infrastructure stream will provide funding for infrastructure projects that improve social inclusion and civic engagement. These investments will include, for example, new, expanded or renewed community hubs and centres, cultural and recreational installations and facilities.

The Community, Culture and Recreation Infrastructure stream provides a base amount of $25 million for each province and territory, ensuring smaller jurisdictions receive meaningful funding. The remainder of the funds available under this stream will be allocated on a per capita basis, using 2016 Statistics Canada Census data.

$2.4 billion for wide-ranging infrastructure needs in rural and northern communities.

The Rural and Northern Communities Infrastructure stream will invest $2 billion to support the unique and wide-ranging infrastructure priorities of small, rural and remote communities, from community facilities and local roads to cleaner energy systems and access to high-speed internet.

In addition, the $400 million Arctic Energy Fund, will be delivered under this stream. This Fund will support energy security in communities in the North, including Indigenous communities, by investing in upgrades to existing fossil fuel-based energy systems, as well as supplementing or replacing these systems with renewable energy options—improving energy reliability and efficiency as well as reducing pollution.

Under the Rural and Northern Communities Infrastructure Stream, a base amount of $75 million will go to each province, and $150 million to each territory, with the remaining funding allocated on a per capita basis, according to the populations of communities under 30,000 in each jurisdiction.

The Arctic Energy Fund will be distributed among the three territories—$175 million each to the Northwest Territories and Nunavut, with $50 million allocated to Yukon.

Allocations by Province and Territory

Based on a ridership (70%) and per capita (30%) formula

Based on a $200 million base amount and a per capita formula

Based on a $25 million base amount and a per capita formula

Base amount of $75 million to each province, and $150 million to each territory and a per capita basis formula according to the populations of communities under 30,000 in each jurisdiction.This includes $400 million Arctic Energy Fund in the territories


Newfoundland & Labrador






Prince Edward Island






Nova Scotia






New Brunswick






Québec *






Ontario **






Manitoba ***


















British Columbia ***












Northwest Territories


















* Allocation amounts for Quebec include $1.283 billion that could be used for Montreal's light rail network (Réseau électrique métropolitain).
** Allocation amounts for Ontario include over $1.091 billion for Ottawa Light Rail Phase 2 and $384.2 million for Port Lands Flood Protection and Enabling Infrastructure project.
*** Allocation amounts for British Columbia and Manitoba include $212.3 million for Lions Gate Wastewater Treatment Plant (BC) and $247.5 million for Lake Manitoba/Lake St. Martin Outlet Channel flood mitigation (MB) announced in Budget 2016.
The difference between the totals of provincial and territorial allocations and the numbers for each stream in the above text is due to the removal of federal administration costs prior to allocation to each province and territory. Administration costs for each province and territory will come from their allocations in the chart above.

Cost Sharing

Under the integrated bilateral agreements, Canada will invest up to:

  • 40% of municipal* and not-for-profit projects;
  • 50% of provincial* projects;
  • 75% of territorial and Indigenous partners' projects;
  • 25% of for-profit private sector projects (except in the Community, Culture and Recreation Stream, where for-profit private sector projects are not eligible).

Provinces will have to cost-share on municipal projects at a minimum of 33.33% of eligible costs.

* For public transit, Canada will provide up to 50% for rehabilitation projects and up to 40% for new public transit construction and expansion projects.
* For projects under the Rural and Northern Communities stream, Canada will invest up to 50% for provincial, municipal and not-for-profit projects.

Investing in Indigenous Communities

The Government of Canada is committed to renewing the relationship between Canada and Indigenous peoples, based on recognition of rights, respect, co-operation and partnership. Working in partnership with Indigenous communities to invest in measures that enable communities to address their infrastructure priorities is a significant opportunity to advance reconciliation and promote inclusive growth. Under the bilateral agreements, eligible Indigenous recipients will include First Nations communities on-reserve, First Nations communities covered by modern treaty and/or self-government agreements, Inuit communities, Métis settlements as well as recognized Indigenous organizations. The federal government has also increased its contribution to projects in Indigenous communities to 75%.

Minister's Letters to Provinces and Territories

On July 6, 2017, the Minister of Infrastructure and Communities reached out to provinces and territories to establish next steps and launch negotiations to work with them to finalize these important agreements quickly. You can read the minister's letters here:

Public transit and Transportation Infrastructure
Green Infrastructure
Social Infrastructure
Trade and Transport
Rural and Northern Communities
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