Infrastructure funding set to rise in 2025 & drop in 2026
As promised under the new Local Government Fiscal Framework (LGFF) Capital program, the Government of Alberta recently announced the next two years of funding allocations so that municipalities can more effectively plan their communities’ futures.
The annual change in LGFF Capital funding is determined based on the change in the Government of Alberta’s revenue from the preceding three years.
Total funding levels for the next two fiscal years are as follows:
- 2024-25 – $722 million (the starting amount when the program was launched)
- 2025-26 – $820 million (+13.6% based on changes in Alberta’s revenue between 2021-22 and 2022-23)
- 2026-27 – $800 million (-2.5% based on changes in Alberta’s revenue between 2022-23 and 2023-24).
While total funding amounts will change from one year to the next, the impact on individual municipalities will vary depending on changes in their formula factors relative to other local governments. Municipalities can view their allocations on the provincial government's LGFF Capital website.
Alberta Municipalities is supportive of the new LGFF Capital program, as we played a key role in its design (as documented in our 2024 Provincial Budget preliminary report). At the same time, the program’s 2024-25 funding amount is insufficient and well below historical funding levels. Consequently, municipal governments are under significant pressure to either raise property taxes or reduce services to manage local infrastructure needs.
