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The Government of Alberta is providing additional capital infrastructure funding to municipalities and Metis Settlements to:

  • sustain and create local jobs
  • enhance provincial competitiveness and productivity
  • position communities to participate in future economic growth
  • reduce municipal red tape to promote job-creating private sector investment

Municipalities will be required to commit to taking concrete actions to reduce red tape and encourage private sector investment.


  • $500 million
  • Funding will be distributed on a per capita basis with a $50,000 minimum funding amount for municipalities with smaller populations; summer villages will be allocated a base of $5,000 plus the per capita amount. This is the same formula as used by the federal Gas Tax Fund (GTF).

A local government must commit its entire allocation to projects by October 1, 2020. Any remaining funding may be reallocated to other municipalities.


Eligible projects

Project eligibility will be similar to the Municipal Sustainability Initiative (MSI), with modifications to ensure projects meet stimulus program objectives.

Eligible project categories include:

  • roads
  • bridges
  • water and wastewater systems
  • public transit
  • recreation

Construction of eligible projects must begin in 2020 or 2021.

Proponents must attest that the project would not go forward this year in the absence of support through the stimulus program.

Projects must not create operational funding requirements for the province, and must not result in municipal tax increases.

Ineligible projects

Projects previously approved for GTF or MSI funding are not eligible. Local governments will not be permitted to withdraw and re-submit MSI or GTF projects to make them eligible.

Rolling stock, such as buses and transit vehicles, and equipment purchases are not eligible for funding.


Local governments should consider which projects best suit the program objectives.

Up to 5 applications can be submitted per municipality. Applicants are  encouraged to use their allocation on one or 2 projects to minimize administrative and reporting requirements.

Consider how projects can support economic recovery by using other existing funding sources (including MSI, existing reserves and responsible borrowing) to maintain or expand capital investment in communities, or accelerate projects that were previously planned.

Program resources

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Red tape reduction forms were distributed to all municipalities on December 3, 2020. If you require a copy of the report template, please contact [email protected].


Connect with a Municipal Affairs Grant Advisor:

Phone: 780-422-7125
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]