By Rebecca Bligh

May 26, 2025

The government of Prime Minister Mark Carney has pledged to build 500,000 homes a year, to grow a more resilient economy, and to stand firm in an increasingly uncertain world. These are the right priorities. But here’s the hard truth: none of these goals is achievable without local governments as full and empowered partners.

We agree with Prime Minister Carney: it’s time to build. But that means enabling and unleashing the order of government with the most direct impact on that goal—local governments. It means having the mature, overdue, and pragmatic conversation this country needs: one that aligns resources with outcomes and empowers those delivering them.

As Parliament resumes and a new mandate begins, Canadians are demanding results. They want homes they can afford, infrastructure they can rely on, and communities where they feel safe and supported. These outcomes don’t materialize from Ottawa—they’re delivered by local governments; the same ones currently expected to achieve 21st-century outcomes with 19th-century tools.

The upcoming Speech from the Throne is more than ceremonial—it’s a credibility test. It’s a chance to show that bold goals come with a plan to deliver. That means confronting uncomfortable truths and committing to a structural partnership that can turn ambition into outcomes.

It’s time to modernize how we work together as governments—starting with a new model that matches ambition with capacity. That’s why FCM is calling for a National Prosperity Partnership: a coordinated plan to align infrastructure, housing, and investment with Canada’s economic goals.

This isn’t only about money. It’s about modernizing how governments work together. A smarter, more collaborative framework would give municipalities the predictability to plan, invest, and deliver results. That includes stable, long-term funding—but also the tools and coordination needed to make every dollar go further. And it means working alongside our provincial and territorial counterparts. National outcomes require alignment among all orders of government.

The most immediate test of this government’s agenda is housing. Hitting the 500,000 homes per year target will take more than policy announcements—it will require coordination across every order of government at an unprecedented scale.

Local governments are already stepping up. Cities like Edmonton, growing by 50,000 people annually, are using AI to streamline development reviews and fast-track approvals. Innovative local solutions exist nationwide. That’s part of why, in 2024, housing permitting hit its highest level since 2017, according to Statistics Canada.

But permitting alone won’t solve the crisis. We need enabling infrastructure to support those new homes. We need wraparound services to support residents. And we need new, modern fiscal tools that match responsibility with capacity.

No issue underscores this need more clearly than homelessness. In 2023, more than 118,000 people experienced homelessness while using emergency shelters—a nearly 12% increase from the previous year. At the current trajectory, nearly half a million Canadians could be without homes by 2030. That’s unacceptable.

Solving this will take all orders of government working hand-in-hand, making stable investments in housing and services that keep people housed.

This isn’t about rewriting the rules of Confederation. It’s about using the tools we already have—more effectively and with clearer purpose—with political will, coordination, and a clear-eyed focus on aligning existing tax dollars with the outcomes the Prime Minister himself has laid out. If it’s time to build—as he’s rightly said—then we need to ask whether our current fiscal tools, frameworks, and intergovernmental relationships are actually set up to deliver.

In a complex federation, that’s not always a comfortable conversation. But we have a prime minister who is already demonstrating that he’s not afraid of uncomfortable truths, and who appears ready to move quickly and pragmatically on the ones we can no longer avoid. This is one of them—and we’re ready to work with him, and with our provincial and territorial counterparts, to get it done.

Canadians don’t want business as usual—they want results. They want homes they can afford, infrastructure they can rely on, and communities where they feel safe and supported. That kind of progress won’t happen without real collaboration with our municipalities.

If every order of government brings its weight to the table, we can deliver the measurable change Canadians expect—and deserve. Let’s reject outdated silos and embrace a smarter, more pragmatic model—one that taps into local leadership to build a stronger, safer, more equitable Canada.

We have the opportunity—and the obligation—to finally get this right. If it’s time to build, it’s time to build together.

Rebecca Bligh is President of the Federation of Canadian Municipalities.