Bilateral Agreements and You: Why Provincial Engagement Is Your Gateway to Federal Infrastructure Funding
The Build Communities Strong Fund ($51 billion over 10 years) is the largest federal infrastructure program in a generation. But here is the catch: it does not flow directly to communities. It flows through bilateral agreements negotiated between the federal government and provinces. If your community is not engaged with your provincial government, you are already behind.
The Problem: Provincial Engagement Is Critical
The Build Communities Strong Fund is structured through bilateral agreements, which means provincial governments negotiate with the federal government to determine how funding is allocated within their jurisdiction. Communities that are not already engaged with their provincial counterparts risk being excluded from the allocation process entirely. By the time a community learns about the program, provincial negotiations may already be complete, and the community's priorities may not be reflected in the bilateral agreement.
The Trend: Bilateral Agreements Shape Funding Access
The federal government launched the Build Communities Strong Fund on April 7, 2026, with $51 billion committed over 10 years for infrastructure that enables housing and community growth. The fund is structured through bilateral agreements with provinces and territories, which means each province negotiates its own allocation and priorities with the federal government. Communities that engaged early with their provincial governments during the negotiation phase secured commitments for their priority projects. Those that waited until after the bilateral agreements were finalized have fewer options.
The Solution: Engage Your Provincial Government Now
Communities need to engage their provincial governments immediately. This means identifying your community's priority infrastructure projects, understanding which categories are eligible under the Build Communities Strong Fund (water, wastewater, transit, roads, health, post-secondary), and communicating those priorities to your provincial government. Communities should also understand the development charge reduction requirement — jurisdictions with high development charges must reduce them for three years as a condition of BCSF access. This affects housing-enabling infrastructure projects.
Practical Takeaways for Band Councils
Identify your community's priority infrastructure projects and align them to BCSF-eligible categories
Engage your provincial government immediately to ensure your community's needs are reflected in bilateral agreement negotiations
Prepare project-ready documentation: feasibility studies, cost estimates, and implementation plans
Understand the development charge reduction requirement and how it applies to your jurisdiction
Build relationships with provincial infrastructure and housing officials — they are your gateway to federal funding
Conclusion
The Build Communities Strong Fund is real money, but it is not automatic. Communities that engage their provincial governments early, prepare credible project documentation, and understand the bilateral agreement process will access funding. Those that wait will find that provincial allocations have already been determined, and their priorities are not reflected. XNM Consulting helps First Nations communities engage with provincial governments and prepare applications for federal infrastructure programs. We work with communities to identify priority projects, develop project-ready documentation, and coordinate with provincial counterparts to ensure community needs are reflected in bilateral negotiations.