2027 federal budget released

The federal government released its 2027 budget on November 5, outlining significant new investments in housing, homelessness, affordability, economic growth and defence. The budget contained $142.1 billion in new spending over five years, offset by $158.3 billion in additional revenue which the 2027-28 deficit estimated to be $62.3 billion. Key measures include a $36 billion "productivity mega-deduction, $11.2 billion to tackle homelessness, and a $22-billion affordability package. Defence spending will rise to $157 billion annually by 2030.  

While the announced funding is welcome, Alberta Municipalities (ABmunis) urges the federal government to engage us ensuring the role out efficiently and effectively meets the needs of Alberta's diverse communities. We also note investments in municipal infrastructure will be required to support development of housing and call on the federal and provincial governments to collaborate with municipalities in needed financial support. 

Housing and Homelessness Highlights 

• An additional $13 billion over ten years, starting in 2028-29, to boost the capital of Build Canada Homes and set them on a path to deliver 200,000 new homes across the country in the next decade, making its total capitalisation $45 billion. 
• Maintaining the 10 year, $51 billion funding for the Build Communities Strong Fund (BCSF) announced in Budget 2026. 
• $1.5 billion over nine years through the BCSF for the construction, expansion, retrofit, and rehabilitation of community recreational facilities $750 million) and ice rinks ($750 million).  
• $1.5 billion over four years, and $387.4 million in future years to prepare federal lands for housing by funding water, wastewater, roads, and other enabling infrastructure. 
• $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. This will be in through a new program wit the Federation of Canadian Municipalities . 
• The budget aspires to end homelessness over the next decade by: 
  • Working closely with provinces, municipalities and philanthropy to provide jobs, training, and income supports to people as they transition from homelessness to a permanent home 
  • Investing $11 billion to build transitional and permanent housing 
  • Building the facilities needed to care for and support the most vulnerable. 

ABmunis will continue to engage with federal leaders to advanced member interests and ensure the often-unique circumstances and needs of Alberta municipalities are heard in Ottawa.