Municipalities across Newfoundland and Labrador need about one billion dollars to bring infrastructure up to current-day standards.

Municipalities cannot do this on their own. They need support from other orders of government to pay for the necessary upgrades. Ahead of the 2026 Provincial Budget, Municipalities Newfoundland and Labrador (MNL) is reminding the government of their commitment to support municipalities.

In Newfoundland and Labrador, of the more than $2 billion in municipal infrastructure, about half of it was past its life expectancy as of 2013. There has not been significant progress since then, and with rising costs, municipalities will now have to spend even more to upgrade water and wastewater systems, pipes, bridges, roads, and buildings.

With increasingly frequent watermain leaks and breaks, deteriorating roads, and wastewater systems that do not meet federal standards, municipalities cannot wait any longer. Nor can they pay for these things on their own, given the inequality baked into the current municipal funding system.

Despite being responsible for 60 percent of infrastructure, municipalities have access to only 10 cents of each tax dollar collected in this province. MNL is calling on the province to follow through on their commitment to provide a more equitable funding structure that meets the needs of municipalities, allows for long-term planning, and provides solutions to current systemic challenges and inequalities.

“Towns and cities in Newfoundland and Labrador face several roadblocks to accessing infrastructure funding. MNL is encouraged by the Provincial Government’s expressed desire to resolve these challenges, and we look forward to solutions that will provide Newfoundlanders and Labradorians with access to clean oceans and safe drinking water, as we collectively work to build sustainable, vibrant communities.” – Amy Coady, MNL President

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Background

MNL’s 2026 pre-budget submission

Municipal infrastructure risks report (2013)