Building Canada Fund

Economic Action Plan buttonThe $8.8 billion Building Canada Fund was established under the 2007 Building Canada plan to fund projects from 2007 to 2014.

The Fund addresses national, regional and local infrastructure priorities and supports projects designed to deliver results in three areas of national importance:

How the Fund Works

The Fund works by making investments in public infrastructure owned by provincial, territorial and municipal governments, and in certain cases, private sector and non-profit organizations. Funding is allocated to each province and territory based on population.


All projects funded through the Building Canada Fund are cost-shared, with the maximum federal contribution to any single project being 50 per cent.

Generally speaking, municipal projects are cost-shared on a one-third basis—the maximum federal share is limited to one-third, with matching contributions from the province and municipality.

For projects where the asset is owned by a private sector entity, the maximum federal contribution is 25 per cent.

In the territories, funding is administered through the Provincial/Territorial Base Fund.

Components of the Building Canada Fund

The Building Canada Fund is made up of two components: the Major Infrastructure Component and the Communities Component.

Funding for research, knowledge, planning and feasibility studies is also available for projects financed under these components.

Building Canada Fund–Major Infrastructure Component (MIC)

The Major Infrastructure Component of the Building Canada Fund targets larger, strategic projects of national and regional significance.

Under the MIC, at least two-thirds of funding supports projects that address national priorities and improve the lives of Canadians. These include projects related to:

  • drinking water;
  • wastewater;
  • public transit;
  • the core National Highway System; and
  • green energy.

Canada's Economic Action Plan, announced in 2009, improved the MIC program by simplifying federal approval processes so that more projects could get underway quickly.

Building Canada Fund–Communities Component (CC)

The Communities Component of the Building Canada Fund targets projects in communities with populations of less than 100,000.

The Fund recognizes the unique infrastructure needs of Canada's smaller communities and focuses on projects that meet environmental, economic and quality of life objectives.

Originally a $1 billion fund, Canada's Economic Action Plan expanded the Communities Component fund with a top-up of $500 million.

The program has funded more than 1,400 smaller-scale projects that improve water, wastewater, public transit, local roads and other types of community infrastructure.