Province says local governments will get increased funding for LGFF

The provincial government says there will be more money for municipalities.

The Local Government Fiscal Framework is funding for local infrastructure priorities in cities, towns, villages, summer villages, municipal districts and counties, and Metis Settlements across Alberta. 

On Tuesday, the province said that next year, municipalities will receive more than $820 million for the 2025-26 fiscal year, an increase of just over 13 per cent from Budget 2024.

“Our government recognizes the importance of infrastructure funding for communities across Alberta, and for that funding to be predictable,” said Ric McIver, Minister of Municipal Affairs. 

“We agreed to tie capital infrastructure funding for municipalities to provincial revenues, and the Local Government Fiscal Framework delivers on that promise. LGFF funds are increasing in 2025 because of our shared commitment to sustainability.”

The LGFF replaces the Municipal Sustainability Initiative, and is 100 per cent tied to provincial revenues. 

For example, the Town of St. Paul is using LGFF monies to help the major paving project at the St. Paul Airport.