For Immediate Release

St. John’s, NL – Municipalities Newfoundland and Labrador (MNL) is expressing significant concern with recently announced changes to the Province’s Multi-Year Capital Works (MYCW) program, citing a lack of meaningful consultation and failure to address longstanding issues with program design.

MNL supports improvements to municipal infrastructure funding programs; however, the changes announced by the Department of Transportation and Infrastructure do not reflect the priorities or recommendations consistently brought forward by municipalities.

“Infrastructure funding has been a top concern for municipalities for many years, and while change was needed, this approach misses the mark,” said MNL President Amy Coady. “Key issues with program design were not addressed, and the municipal sector was not meaningfully consulted in the development of these changes.”

Municipalities in Newfoundland and Labrador are responsible for over 60 percent of public infrastructure, much of which is aging and in need of renewal. MNL emphasizes that the sector requires expanded and predictable funding, not reductions or structural changes that limit planning capacity.

The Province has proposed significant changes to the MYCW program, reducing the number of participating municipalities from 22 to seven. These seven municipalities will see the program transition from a three-year to a four-year funding cycle. While this extends the timeline, it effectively spreads the same funding over an additional year, resulting in a reduction in annual funding and delaying new project development in 2026.

At the same time, the 15 municipalities being removed from the MYCW program and transitioned into the Municipal Capital Works program will lose the ability to plan and deliver multi-year infrastructure projects. Instead, they will be required to apply for funding on an annual basis, limiting their capacity for long-term planning and increasing administrative burden.

Overall, the shift from a three-year to a four-year cycle further complicates infrastructure planning and delivery across the sector, creating uncertainty and reducing municipalities’ ability to effectively manage and prioritize critical infrastructure investments.

“Municipalities need a reliable funding model that allows for long-term planning and responsible asset management,” added Coady. “It is not effective to design programs for municipalities in isolation, without direct input from the sector that delivers these critical services.”

MNL stresses that infrastructure programs must be developed in partnership with municipalities to ensure they are responsive, flexible, and reflective of on-the-ground realities.

“If the intent was to deliver a program that works for municipalities and the people we serve, this approach has fallen short. We need a renewed commitment to collaboration and a funding model that meets the growing infrastructure needs of our communities,” said Coady.

MNL is actively engaging with municipalities to assess the full impacts of these changes and is seeking meetings with provincial officials to address concerns and identify solutions.

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