Municipal Response to Budget 2021.

For Immediate Release
April 20, 2021

St. John’s, NL – Municipalities Newfoundland and Labrador is applauding the support for communities, businesses and workers announced in yesterday’s federal budget. The budget delivers key investments that will help municipalities to create jobs, support and strengthen their communities, and build greener infrastructure.

Highlights for municipalities include support for:

Rural communities: Budget 2021 provides new broadband funding to tackle the digital divide faster and opens up expanded disaster mitigation funding to smaller communities. That’s on top of the one-year doubled Gas Tax Fund (The Canada Community Building Fund) transfer, which directly equips rural communities to drive job-creating infrastructure projects.

Climate resilience and natural infrastructure: The Disaster Mitigation and Adaptation Fund will unlock job-creating local projects that protect our communities from new climate extremes. The new Natural Infrastructure Fund will be a tool for local conservation and biodiversity projects.

The budget provides more funding for municipalities to deliver affordable and supportive housing to more Canadians.

“We recognize that this budget delivers on several key recommendations from the Federation of Canadian Municipalities. The federal recovery plan must empower communities of all sizes by strengthening our municipal toolbox. Budget 2021 is a clear sign that the federal government understands the role of municipalities as essential partners in that recovery. MNL will continue to advocate for municipal operating budget supports. We need everyone gearing up for recovery—not gearing down projects to fill budget holes.” Amy-Coady Davis, MNL Interim Chair.


MNL released its COVID-19 financial impacts report last week, calling for more flexible, multi-year, and less administratively burdensome operational and infrastructure funding for municipalities. The report is here.