This year's upcoming federal budget comes at a pivotal time for Canadians, and local governments play an essential role in Canada's success. The Federation of Canadian Municipalities (FCM) has submitted its recommendations through the House of Commons Finance Committee and Finance Canada's pre-budget consultations. From housing and infrastructure to climate resilience and public safety, municipalities are already delivering results and stand ready to scale up impact with the federal government to tackle Canada's most pressing challenges.

FCM's pre-budget submission outlines practical steps to empower communities and strengthen the economy. With shovel-ready projects and deep local insight, municipalities are essential partners in building a stronger Canada.

"Local governments aren't waiting, we're already delivering results for Canadians," said FCM President Rebecca Bligh. "We're not just ready to help, we're essential partners in building a stronger, more resilient Canada. Let's forge ahead, together, with ambition and action."

Housing first, housing fast

FCM is looking forward to working with the federal government to ensure we are successful in accelerating housing construction towards 500,000 housing starts a year over the next decade. Municipalities have the plans and capacity to deliver but need federal support to fast-track non-profit and modular housing and unlock public lands for development.

To address homelessness and support vulnerable populations, FCM is also calling for increased funding to the Reaching Home program and a coordinated plan for refugee housing.

Investing in infrastructure that works

Municipalities are already leading on climate adaptation, trade-enabling infrastructure, and public safety. Budget 2025 must invest in:

• Local infrastructure that supports housing and economic growth
• Climate-resilient projects that protect communities and save billions in future costs
• Public safety measures, including bail reform and enhanced RCMP resources in rural, northern and remote areas

A modern fiscal partnership

Canada's outdated funding model for municipalities is slowing progress. However, we can build on the gains already achieved. FCM urges the federal government to expand the Canada Community-Building Fund (CCBF) a great way to renew local infrastructure and unlock housing. Boosting and indexing the CCBF to GDP growth would benefit all communities, reduce reliance on complex, bureaucratic funding programs, and enable local government to meet national goals. 

Working together for Canadians

From housing and infrastructure to climate resilience and public safety, local governments are leading with purpose and impact. Budget 2025 is a chance for the federal government to build on this momentum and work alongside municipalities to achieve lasting, transformative change for Canadians.