How the Investing in Canada Infrastructure Program works with provinces and municipalities

By GrantHub Research Team · · Lire en français

How the Investing in Canada Infrastructure Program works with provinces and municipalities

If you’re a municipality, public-sector organization, or contractor working on public projects, the Investing in Canada Infrastructure Program (ICIP) can seem confusing. This is because you don’t usually apply to the federal government directly. ICIP is a $33 billion federal infrastructure program delivered through agreements with provinces and territories, with projects supported through 2033.

Here’s a clear breakdown of how ICIP works and who does what at each level of government.


The role of the federal government under ICIP

The federal government sets up the ICIP framework and supplies the funding. It does not run open national intakes for municipalities.

Under ICIP:

  • The federal government creates the program rules, funding streams, and lists of eligible projects
  • Total federal funding is divided by province and territory, not by individual municipality
  • Funding is sent through agreements signed with each province and territory
  • Federal departments review projects from provinces to make sure they meet ICIP rules

ICIP supports projects in four main streams:

  • Public transit
  • Green infrastructure
  • Community, culture, and recreation infrastructure
  • Rural and northern communities infrastructure

The federal government mostly approves and shares costs after a province submits a project for review.


Why provinces and territories are the main gatekeepers

Provinces and territories have the main role in how ICIP works with municipalities.

Each province or territory:

  • Gets a set amount of federal funding under ICIP
  • Designs its own application process, timelines, and project rules
  • Consults with municipalities and Indigenous communities
  • Chooses, ranks, and submits projects to the federal government
  • Signs funding agreements and sends funds to final recipients

This means ICIP is different in every province. Application forms, deadlines, and eligible costs are set by the province or territory, not by the federal government.

For example, in New Brunswick, the provincial government manages ICIP applications from municipalities and selects which projects move forward.


How municipalities access ICIP funding

Most municipalities do not apply to the federal government for ICIP funding.

Instead, municipalities usually:

  • Develop project ideas that match ICIP streams
  • Submit their projects through provincial or territorial intakes
  • Provide details like business cases, cost estimates, and project readiness when asked by the province
  • Wait for the province to group and send projects to the federal government

Provinces act as the link between municipalities and the federal government. Even if a project fits ICIP goals, it must be chosen by the province or territory to get federal funding.

You can use tools like GrantHub’s eligibility matcher to check which infrastructure programs in your province are still open for applications.


Cost-sharing and funding structure

ICIP is mostly delivered as non-repayable contributions, not loans.

The cost-sharing usually looks like this:

  • A federal contribution (up to a set percentage of eligible costs)
  • A provincial or territorial contribution
  • A municipal or other recipient contribution, depending on the project type

The exact funding split is explained in each agreement and provincial intake guide. Municipalities must have their share of funding ready before their project can be approved.


Current status of the Investing in Canada Infrastructure Program

As of April 4, 2023, the federal government announced that all provincial and territorial ICIP funding had been allocated or committed. No new federal funding was added, but project delivery continues through to 2033.

Many provinces now focus on:

  • Completing approved projects
  • Reallocating funds from cancelled or delayed projects
  • Managing changes instead of starting new ICIP intakes

Common mistakes to avoid

Thinking you can apply directly to the federal government
Most ICIP projects must go through provincial or territorial processes. Direct federal applications are rare.

Missing provincial intake deadlines
Even if federal funding is available, provinces control the timing. Late applications are usually not accepted.

Not matching provincial priorities
Projects must fit both ICIP streams and provincial infrastructure priorities to be chosen.

Not being ready to start
Provinces often pick projects that are “shovel-ready” with completed designs, permits, and cost estimates.


Frequently Asked Questions

Q: Is the Investing in Canada Infrastructure Program still open?
Federal ICIP funding has been fully allocated, but approved projects are still being delivered through to 2033. Some provinces may reassign funds from cancelled projects.

Q: Can a municipality apply directly to Infrastructure Canada?
Usually, no. Municipalities apply through their province or territory, which submits projects to the federal government.

Q: What types of projects qualify under ICIP?
Eligible projects include public transit, green infrastructure, community and recreation facilities, and rural or northern infrastructure.

Q: Is ICIP funding repayable?
No. ICIP funding is usually provided as a non-repayable contribution for approved capital projects.

Q: Do Indigenous communities apply through provinces?
In many cases, yes, though some special or negotiated processes may apply depending on the province and project type.

GrantHub tracks active and older infrastructure funding programs across Canada—see which ones still match your organization and project stage.


Next steps

If you’re planning an infrastructure project, it’s important to know who controls the intake in your province or territory and whether ICIP funding is still being reassigned. Provincial timelines, not federal ones, usually decide your chances.

GrantHub helps municipalities, nonprofits, and public-sector partners see which infrastructure programs are active, closed, or winding down—and what funding options may replace ICIP in your region.

See also:

  • Repayable vs Non-Repayable Business Funding in Canada: Program Examples Explained
  • How to stack grants and loans without violating funding rules

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