Budget 2026's major housing and homelessness investments give Canada an opportunity to move more people into affordable, safe and stable homes. The Federation of Canadian Municipalities (FCM) says municipalities are ready to deliver, and governments must now match the federal housing ambition with the provincial and territorial health and operating supports and local infrastructure investment needed to take decisive and timely action.

Addressing homelessness and housing affordability

Municipalities have long called for meaningful action on the growing homelessness crisis. The $11.2 billion investment over four years to end homelessness in the budget responds to those calls and recognizes municipalities' essential role in connecting people with safe, stable housing.

"This budget enables the kind of decisive action on homelessness that municipalities have long called for, and the federal government deserves credit for that leadership," said FCM President Tim Tierney. "The test now will be turning that commitment into safe homes and lasting support for people. Municipalities are ready to do our part. Provinces and territories must step up with the operating funding as well as health and social supports essential to success."

Lasting progress on homelessness requires more than housing alone. Reliable provincial investments in mental health care, addiction treatment, social services and wraparound supports are essential to providing supportive and transitional housing and helping people achieve long-term housing stability.

FCM also welcomes the federal government's ambition to triple the pace of non-market housing starts in Canada over the next decade, including through a new $13 billion investment in Build Canada Homes.

Accelerating housing approvals

The federal government also launched a new program with FCM, backed by $100 million over three years, to help municipalities modernize permitting systems, streamline housing development approvals and accelerate housing delivery across the country, including through e-permitting and the adoption of AI.

Municipalities are essential partners in building more homes for Canadians. The new program demonstrates what federal and municipal governments can achieve by working together to scale up local solutions.

Building the foundation for growth

Budget 2026 sets bold objectives for housing affordability and homelessness. Delivering on these and other shared goals building more homes, enabling major projects, diversifying trade and strengthening defence requires accelerated investment in local infrastructure at a pace and scale that match these ambitions.

Local infrastructure is also what enables community connection, joy and well-being. To that point, FCM welcomes a new investment of $1.5 billion in community recreational infrastructure, including ice rinks, highlighting the importance of these public spaces in Canadians' daily lives.

National priorities take shape in communities, and municipalities are ready to build quickly. Over the past year, they have demonstrated their ability to move projects forward through the Direct Delivery Stream, which is fully subscribed, and the Community Stream of the Building Communities Strong Fund (BCSF).

Getting infrastructure funding to communities faster

Other BCSF funding, including the Provincial and Territorial Stream, is not reaching communities quickly enough. Accelerating delivery and turning funding into local projects will be essential to achieving national objectives.

"We've seen progress where infrastructure funding reaches communities directly," added Tierney. "Now we need to build on what works to get committed funding into local projects faster. This means scaling investment directly into communities that are ready to deliver and finding a way to get the projects moving in the other streams of the Building Communities Strong Fund where funding is not getting out the door."

FCM will continue to press for faster funding delivery and increased local infrastructure investment, so municipalities have the tools and resources to turn Canada's housing and economic ambitions into concrete results.

Every order of government has a role in Canada's collective success. FCM is ready to work with federal, provincial and territorial governments to build a stronger, more resilient Canada.