Ottawa, Quebec reach $1B deal to build critical infrastructure

Key Takeaways:

• The federal government will invest nearly $1 billion through the Canada Housing Infrastructure Fund to help Quebec build critical water, wastewater and stormwater infrastructure needed to unlock new housing development.
• The agreement creates a joint federal–provincial collaboration table to better coordinate affordable housing projects, streamline approvals, and reduce infrastructure bottlenecks that have slowed housing starts in many municipalities.
• Quebec will control how the funding is allocated based on local priorities, with provincial leaders emphasizing that the deal respects Quebec’s jurisdiction while enabling long-awaited municipal infrastructure upgrades.

The Whole Story:

The federal and Quebec governments have signed a memorandum of understanding and a housing infrastructure agreement aimed at accelerating residential construction and expanding affordable housing supply across the province.

Under the Agreement on the Canada Housing Infrastructure Fund (CHIF), the federal government will invest nearly $1 billion to support infrastructure projects that enable new housing development. Quebec will direct the funds according to its priorities and territorial needs, with a focus on drinking water, wastewater, and stormwater systems.

The two governments will coordinate through a joint Collaboration Table to fund affordable housing projects, streamline approval processes, and improve coordination between federal, provincial, municipal, and community partners. For builders and developers, the deal signals a streamlined pathway for residential projects. Infrastructure bottlenecks—particularly water systems—have constrained housing starts in many Quebec municipalities. The agreement aims to remove those barriers by aligning federal and provincial funding with local development needs.

“Too many families in Quebec are still looking for a home that meets their needs. Municipalities need reliable, well-adapted infrastructure to make that possible,” said Gregor Robertson, federal Minister of Housing and Infrastructure. “By working closely with the Government of Quebec, we’re creating the conditions to speed up homebuilding, remove barriers, and deliver real solutions for communities.”

Caroline Proulx, Quebec’s Minister Responsible for Housing, called the agreement “a major step forward” that respects the province’s jurisdiction and legislative framework.

“This latest agreement reaffirms the shared commitment of the governments of Quebec and Canada to take swift and concrete action,” she said.

Geneviève Guilbault, Quebec’s Minister of Municipal Affairs, emphasized the infrastructure focus.

“We have negotiated $1 billion to support our municipalities and, above all, our citizens by financing water infrastructure that is essential to the daily quality of life of Quebecers,” she said. “Thanks to this agreement, dozens of municipalities will be able to carry out long-awaited work and provide reliable services throughout Quebec.”

The announcement was made Jan. 21 in Quebec City by federal ministers Robertson, Joël Lightbound (Government Transformation, Public Works and Procurement), and parliamentary secretary Caroline Desrochers, alongside Quebec ministers Proulx and Guilbault, and Quebec City Mayor Bruno Marchand.