Federal-Alberta housing fund commits $510M for water and wastewater infrastructure

Ottawa and Alberta have signed an agreement to provide $510 million in federal funding for water and wastewater infrastructure across the province over eight years, with the province contributing at least a third of eligible project costs.

Prime Minister Mark Carney and Premier Danielle Smith announced the Canada-Alberta Housing Infrastructure Fund Agreement on Wednesday in Red Deer. The deal aims to address infrastructure gaps that have constrained housing development as Alberta's population surged by more than 600,000 over the past five years.

"Red Deer, like so many communities across Alberta, has experienced the pressures that come from the kind of rapid population growth we've seen," Smith said. "This growth has strained public services and infrastructure all over the province."

Local governments across Alberta face a $30 billion infrastructure deficit, according to Alberta Municipalities, even as provincial funding for infrastructure dropped 64 percent compared to 2011. The federal investment addresses long-standing gaps exposed during Calgary's water main ruptures in 2024 and December 2025, which threatened supply to millions of residents and prompted significant city investment in replacement infrastructure.

The agreement will support approximately 750 skilled trades jobs annually—including engineers, pipe fitters, electricians, and plumbers—and allocate at least $100 million to projects benefiting rural and Indigenous communities. Carney noted that the arrangement aligns with broader federal housing initiatives already rolled out in British Columbia and Ontario.

"Strong communities start right here. They start with housing and a home needs more than four walls and a roof. They also need clean drinking water and reliable sewage systems," Carney said at the announcement.

Dr. Sasha Tsenkova, a professor at the University of Calgary's School of Architecture, Planning and Landscape, called the funding "much-needed support" after years of advocacy from research institutions and industry groups for federal and provincial commitment to infrastructure spending.