Funding for Municipalities Through Federal Agreement

The Province has signed a new 10-year agreement with the federal government that will provide $318 million in the first five years to Nova Scotia’s 49 municipalities.

The Canada Community-Building Fund provides up-front and predictable long-term funding to help address local infrastructure priorities such as drinking water, wastewater, public transit and community energy projects.

Upgrading municipal infrastructure that people rely on is an important part of addressing the housing crisis. The renewal of this agreement means that critical infrastructure will continue to be built, maintained and expanded.

“We are laser-focused on working with our partners to find solutions to address the housing crisis. The work this government has done in the last few years, including the five-year housing plan and the housing needs assessments for municipalities, has strengthened Nova Scotia’s position in negotiating this new agreement,” said John Lohr, Minister of Municipal Affairs and Housing. “It’s through partnerships like these that we can build the critical infrastructure needed for new homes.”

The fund is meant to help municipalities build and revitalize public infrastructure in keeping with priorities such as improving housing supply and affordability; productivity and economic growth; a clean environment; and strong cities and communities.

Quotes:

“Investments in infrastructure are essential in our work to support affordable communities for all Canadians. We are proud to announce this deal with Nova Scotia today that will give municipalities across the province the flexibility to invest in their local needs.”
— Sean Fraser, federal Minister of Housing, Infrastructure and Communities

“This new agreement provides essential funding for critical infrastructure, such as drinking water and transit, to support housing development. It also promotes tourism, recreation and environmental initiatives like brownfield redevelopment and solid waste diversion that help communities thrive. By partnering with municipalities, the federal and provincial governments continue to demonstrate their commitment to Nova Scotians.”
— Carolyn Bolivar-Getson, President, Nova Scotia Federation of Municipalities

Quick Facts:

• the Canada Community-Building Fund is a permanent, indexed source of funding provided to municipalities up-front twice a year
• the fund has existed since 2005 and was formerly known as the Gas Tax Fund
• the previous 10-year agreement was effective from April 1, 2014, to March 31, 2024, and Nova Scotia received $681 million
• Nova Scotia will receive $60.7 million for the 2024/25 fiscal year

Additional Resources:

The Canada Community-Building Fund: https://housing-infrastructure.canada.ca/ccbf-fdcc/index-eng.html

Mandate letter for the Minister of Municipal Affairs and Housing: https://novascotia.ca/exec_council/letters-2021/ministerial-mandate-letter-2021-MAH-EMO-MR.pdf