In response to the Spring Economic Update, the Federation of Canadian Municipalities (FCM) is putting the spotlight on the need for practical measures that deliver results faster for communities as affordability pressures weigh on Canadians.

"The Spring Economic Update primarily presented an update on the implementation of Budget 2025, and it missed the opportunity to increase the pace of investment in local infrastructure, the very backbone of our economy," said FCM President Rebecca Bligh. "It's the fastest way to get more homes, roads and bridges built. Municipalities are the essential partners delivering and renewing the local infrastructure that keeps Canada moving. We will be looking at Budget 2026 this fall to ramp up the pace and scale necessary to set municipalities up for success and truly deliver for Canadians."

FCM welcomed several updates on key issues, including extortion, responding to the needs of encampment residents, as well as nearly $960 million over five years for the Small Craft Harbours program. As recent investment in local infrastructure via the Build Communities Strong Fund have shown, the priorities presented in the SEU highlight the importance of municipal and local infrastructure.

To support the infrastructure needs of rural and northern municipalities, FCM is renewing its call for dedicated funding that reflects geographic realities, local capacity, and the significant infrastructure responsibilities facing these communities. FCM also underscored the importance of restoring and streamlining transit investments that support workforce mobility, affordability and economic growth, including reversing the cuts to the Canada Public Transit Fund.

Looking ahead to Budget 2026, FCM is ready to work with the federal government to ensure municipalities are equipped to deliver results for Canadians on housing, trade and economic growth. Municipalities and local infrastructure are where national priorities meet real-world delivery. By continuing to engage all orders of government, Budget 2026 is an opportunity to ramp up investments at the pace and scale necessary to set communities up for success.