Small, mid-sized Alberta communities impacted by population growth now eligible for infrastructure grant

Minister of Municipal Affairs, Ric McIver, was in Lethbridge Tuesday to announce funding for Alberta communities impacted by the province’s population boom.

The Local Growth and Sustainability Grant (LGSG) will give $60 million over three years to help address the demand on public infrastructure such as roads, bridges and water treatment systems seen as a result of fast growing communities.

“We have heard clearly from our municipal partners that population growth and expanding industrial and commercial activity, though good for local economies, are also putting significant pressure on public infrastructure in some Alberta communities,” McIver said. “The LGSG is designed to bring some relief to recent growth pressures while attracting new investment that provides jobs for Albertans and helps to keep our provincial economy thriving.”

The LGSG is designed to complement the existing Local Government Fiscal Framework, which is also designed to address similar concerns.

The LGSG is made up of two parts. The first is the growth component of $15 million in 2024-25, meant to help mid-sized communities with populations between 10,000 and 200,000 meet growth-related infrastructure needs like roadways. The second, is the sustainability component (about $5 million for 2024-25) which well aid smaller communities with fewer than 10,000 address pressing health of safety issues like water treatment.

Applications for the program have now opened and close on Nov. 29.

Projects that are chosen for the grant will be funded under the growth component and cost-shared with the applicant municipal government, according to the province. Growth component funding will cover up to 50 per cent of project costs.

The government claims municipalities will receive $820 million in grants during the 2025-26 fiscal year.