Over the next eight years, Alberta municipalities will have access to more than $510 million in federal funding for water and wastewater infrastructure projects to support housing growth.
Prime Minister Mark Carney and Premier Danielle Smith announced the funding Wednesday in Red Deer, saying the investment comes through the Canada Housing Infrastructure Fund following a new partnership agreement between the federal and provincial governments.
Under the agreement, Alberta will contribute at least one-third of eligible project costs led by municipal governments, unlocking up to $428 million in provincial funding for qualifying infrastructure projects.
“Strong communities start with the infrastructure to support them. By investing in the water and wastewater systems communities rely on, we’re doing what it takes to build more housing, attract new investment and keep pace with Alberta’s growth,” Smith said.
Carney said the agreement is designed to give communities more flexibility while helping governments address infrastructure needs tied to housing construction.
“Alberta has an ambitious plan to scale up homebuilding and our government is backing it. We’re partners in this mission, working in the true spirit of cooperative federalism,” Carney said.
The agreement will allow Alberta to play a central role in identifying and prioritizing projects under the Canada Housing Infrastructure Fund. The province will assess proposals based on regional needs, population growth and infrastructure pressures.
At least $100 million of the funding will be allocated to rural and Indigenous communities.
Smith said Alberta’s recent housing growth shows why investments in essential infrastructure are needed before new communities can be built.
“Builders can only build when the infrastructure is there to support new communities,” Smith said. “A whole lot of work has to happen in the background and literally under the ground before the first shovel ever breaks the surface.”
She said new developments depend on reliable water and wastewater systems and added that the agreement will allow Alberta to direct funding toward priority projects.
“Our government will identify and prioritize projects based on local needs ensuring that municipalities, rural communities and Indigenous communities can access the infrastructure funding that they need to maintain existing systems and support housing growth and economic development.”
The premier also highlighted Alberta’s recent housing construction numbers, saying the province recorded more than 53,000 housing starts last year — the highest number in Alberta’s history.
“Alberta builders are doing their part, but builders can only build when the infrastructure is there to support new communities,” Smith said.
Carney said the federal government is applying lessons from previous housing programs by setting broad goals rather than requiring communities to follow a single model.
“We’re being less prescriptive, we’re being clearer about the objectives,” Carney said. “We’re recognizing that there will be different solutions in different municipalities and certainly within different provinces across the country.”
“We’re focused on building affordable housing and the infrastructure that helps support that.”
“There are great housing needs in Alberta, there are great builders in Alberta, and using the latter in order to achieve the former is what we’re focused on.”
Transportation and Economic Corridors Minister Devin Dreeshen said Alberta worked to ensure the agreement complements existing provincial water infrastructure programs while maintaining provincial oversight.
“With provincial oversight of project selection, we will be able to select projects that will meet regional needs and support growing Alberta communities,” Dreeshen said.
Provincial officials said Alberta’s population has grown by more than 600,000 people over the past five years, increasing demand for public services, infrastructure and housing.
The province’s Transportation and Economic Corridors ministry is developing the first list of projects under the agreement, with submissions to the federal government expected by Nov. 30.
