KITCHENER, ON – Kitchener Mayor Berry Vrbanovic has welcomed the federal government’s 2025 budget, Canada Strong, praising its focus on housing, infrastructure, and community investment as key drivers of local and national prosperity.
Presented late Tuesday by Finance and National Revenue Minister François-Philippe Champagne, the budget outlines a long-term plan to strengthen cities and support affordability while bolstering economic resilience across the country.
Budget 2025 Prioritizes Local Investment
“Budget 2025-26 arrives at a critical time. It recognizes the need to make life more affordable for Canadians while committing to the infrastructure and housing investments that cities like ours depend on,” said Mayor Vrbanovic. “I would like to congratulate Minister Champagne, on a budget that recognizes the importance of Canada’s cities and communities while focusing on shifting our economy toward strength and resilience.”
At the heart of the new fiscal plan is the Build Communities Strong Fund, a $51 billion commitment over ten years designed to support local infrastructure projects vital to housing development, trade, productivity, and community resilience. Beginning in 2026-27, the fund will allocate $3 billion annually toward projects across Canada that aim to address pressing urban challenges, from affordable housing shortages to critical infrastructure renewal.
Investments to Strengthen Economic Resilience
Vrbanovic emphasized that the federal focus on infrastructure is particularly important for fast-growing urban centres like Kitchener, where population growth and economic expansion have placed increasing demands on municipal services and housing supply.
“We are grateful to the federal government for making significant commitments to infrastructure investments that will support communities like Kitchener, and help stimulate the economy,” he said. “As one of Canada’s largest cities, Kitchener is experiencing strong demand for housing, business investment, and trade-enabling infrastructure. Today’s investments are an important step in helping make Canada and Kitchener more resilient in responding to a changing geo-political landscape.”
Local officials say such federal commitments will directly benefit Kitchener’s ongoing efforts to modernize its transit systems, upgrade water and wastewater networks, and prepare for future growth driven by technology, manufacturing, and innovation sectors.
Boost for Housing Affordability
The 2025 budget also reaffirmed Ottawa’s dedication to tackling Canada’s housing affordability crisis through the creation of Build Canada Homes, a new federal agency tasked with accelerating housing construction by coordinating public and private sector efforts.
Mayor Vrbanovic welcomed the measure, noting that the City of Kitchener has made affordable housing a top priority as part of its long-term growth strategy. “Affordable housing is a key priority for Kitchener, and the City welcomes more investments and innovation to achieve our mutual goals to build housing faster,” he said.
Among the new housing measures, the federal government announced the elimination of GST on homes priced at $1 million or less, a policy Vrbanovic described as a meaningful step toward helping first-time buyers enter the market.
“Additionally, eliminating GST on homes priced at $1 million or less will help Kitchener residents afford their first home,” the mayor said. “We’re building Kitchener together and look forward to working with our federal partners to ensure that the residents and businesses of our community have the tools they need to build housing, strengthen trade corridors, enhance climate resilience, and support the economic growth vital for Kitchener’s future.”
Call for Long-Term Municipal Fiscal Planning
While praising the federal budget’s emphasis on cities, Vrbanovic also reiterated the need for all levels of government to collaborate on a long-term fiscal framework for municipal infrastructure funding. He noted that many municipalities face structural challenges in sustaining essential infrastructure without predictable, ongoing investment.
“Kitchener also continues to call on the federal and provincial governments to work with municipalities to create a long-term fiscal plan for municipal infrastructure,” Vrbanovic said. He added that the City remains aligned with the Federation of Canadian Municipalities (FCM) and other local governments across the country in advocating for lasting solutions that ensure communities have the resources needed to support growth and economic stability.
Local Perspective on National Strategy
For cities like Kitchener—recognized as one of Canada’s most dynamic urban economies—the new federal initiatives represent a pivotal opportunity to strengthen the link between local priorities and national policy. The combination of infrastructure, housing, and economic incentives outlined in Budget 2025 aligns with the city’s ongoing efforts to attract investment, expand housing supply, and prepare for the next phase of sustainable urban development.
Mayor Vrbanovic’s response reflects the broader optimism shared by municipalities across Canada, which see renewed federal attention to community-building as essential for maintaining competitiveness and livability.
“We’re building Kitchener together,” he said, underscoring the city’s readiness to collaborate with federal partners on implementing the new funding opportunities.
As details of the Build Communities Strong Fund and Build Canada Homes initiative roll out in the coming months, Kitchener officials are expected to engage with federal representatives to identify key projects that could benefit from the new funding streams.
With the 2025 budget’s release, municipalities across the country are now looking ahead to how these commitments will translate into tangible improvements for Canadians—on their streets, in their homes, and throughout their communities.
