Prime Minister Mark Carney announced today that his government has no immediate plans to overhaul how Canadian municipalities are funded, as the federal focus remains on delivering major national infrastructure projects.
Speaking at the annual conference of the Federation of Canadian Municipalities (FCM), Carney acknowledged long-standing calls from cities and towns for a more autonomous and predictable funding framework. Municipal leaders have advocated for mechanisms that would allow greater financial independence and flexibility in planning long-term projects.
While affirming that the current funding model should not be “arbitrary and unpredictable,” Carney noted that any fundamental changes would require in-depth consultations and coordination with provincial governments, which maintain constitutional authority over municipalities.
Given the urgent need to build housing and trade infrastructure—including ports, energy corridors, and transportation systems—Carney emphasized that Ottawa cannot afford to delay progress by waiting for those broader provincial discussions to conclude.
The Prime Minister reiterated his commitment to working with municipal governments and indicated that federal support will likely continue through targeted funding for specific, high-impact projects rather than sweeping structural reforms at this time.