The province of Alberta is committing $7.5 billion over three years in municipal infrastructure funding to support projects and initiatives in Alberta's municipalities, which amounts to 29 per cent of its Capital Plan.
Over $3.7 billion of that amount will support municipal community infrastructure projects and programs. The largest portion is allocated through the Local Government Fiscal Framework (LGFF), for which Budget 2025 allocates nearly $2.5 billion over three years. The total amount for the LGFF in 2025 will be $820 million, an increase of $96 million from 2024.
In 2026-27, the targets for the LGFF are set to $800 million, followed by $871 million in 2027-28.
The LGFF program provides capital funding to municipalities to support projects that support local and provincial economic activities.
Through the LGFF, municipalities across Alberta share in both increases and decreases in provincial revenues.
Of the $820 million available to Alberta municipalities through the LGFF, Calgary and Edmonton will receive $434 million, and the rest will be divided up among the municipalities. In 2025, St. Albert is projected to receive $9.25 million through the LGFF and $9.22 million in 2026.
President of Treasury Board and Finance Minister Nate Horner said during a news conference that the increase was based on the province's revenue sharing model.
St. Albert Mayor Cathy Heron has previously said that the funds available through the LGFF program would help fund affordable housing initiatives in St. Albert, notably the commercial apartment complex that is being planned for development on 22 St. Thomas Street.
The 2025 Budget allocates $87 million for various Alberta affordable housing initiatives, including the Affordable Housing Strategy.
Budget 2025 also includes $3.3 billion for municipalities to fund high-priority transportation projects, with about $2.9 billion allocated for light rail transit (LRT) projects in Edmonton and Calgary. The allocation for the Strategic Transportation Infrastructure Program (STIP) is $127 million over three years, the purpose of which is for small and mid-sized municipalities to build or repair transportation infrastructure.
