Top 5 Federal Infrastructure Grants for Small Towns in Ontario (2025 Guide)
In 2025, small towns across Ontario are still facing the tough challenge of keeping their infrastructure up to date — from fixing old water systems and crumbling roads to improving broadband access and community spaces. The good news? Several federal grant programs are available to help towns tackle these issues without breaking their budgets.
This guide covers the top five infrastructure grants available to small Ontario communities this year, how they work, and how your town can benefit.
Why These Grants Matter for Small Towns
Small towns often operate with tight budgets, which can make large infrastructure projects feel out of reach. That’s where federal funding steps in — offering financial support to improve:
- Clean drinking water and sewage systems
- Road and bridge maintenance
- High-speed internet access
- Climate resilience and disaster preparedness
- Public spaces, recreational facilities, and local transit
These grants help small towns not only maintain essential services but also build for a more sustainable future.
The Top 5 Federal Grants to Know in 2025
1. Investing in Canada Infrastructure Program (ICIP)
This is one of the most comprehensive funding programs available, with different streams for various infrastructure needs. It’s run by the federal government in collaboration with Ontario.
What makes it great:
- Offers up to 80% funding for eligible projects in small communities
- Covers a wide range of infrastructure types
Eligible projects include:
- Water and wastewater upgrades
- Public transit
- Broadband internet expansion
- Community centres and recreation spaces
2. Green and Inclusive Community Buildings Program
This program helps municipalities make community buildings more energy-efficient, accessible, and climate-resilient.
Why it stands out:
- Covers up to 100% of costs in some rural and Indigenous communities
- Prioritizes green tech and accessibility upgrades
Project examples:
- Retrofitting libraries and community halls
- Installing energy-efficient HVAC systems
- Adding solar panels or green roofs
3. Disaster Mitigation and Adaptation Fund (DMAF)
Climate change has made floods, wildfires, and severe storms more common — and this fund is designed to help towns prepare.
Who should consider it:
- Communities facing risks from extreme weather or natural disasters
Eligible projects include:
- Floodplain mapping
- Stormwater and drainage system upgrades
- Reinforcing bridges and culverts
- Making public buildings more fire-resistant
4. Universal Broadband Fund (UBF)
This fund is focused on closing the connectivity gap in rural and remote communities.
What you need to know:
- Can cover up to 90% of project costs for underserved areas
- Highly competitive, so strong proposals are key
Funding supports:
- Fibre optic cable installation
- Fixed wireless internet networks
- Satellite infrastructure
5. Canada Community-Building Fund (formerly Gas Tax Fund)
This isn’t a traditional grant you apply for — it’s annual, formula-based funding that goes directly to municipalities through the province.
Why it’s valuable:
- Predictable funding every year
- Can be used flexibly across 18 infrastructure categories
Common uses:
- Road and bridge repairs
- Sidewalks, cycling infrastructure
- Waste diversion and recycling facilities
At-a-Glance Comparison Table
| Program | What It Funds | Max Federal Funding | Best For |
|---|---|---|---|
| ICIP (Ontario streams) | Roads, water, broadband, recreation | Up to 80% | Multi-sector projects |
| Green & Inclusive Community Buildings | Retrofits, green buildings | Up to 100% | Community halls, libraries |
| DMAF | Flood/fire protection, disaster prep | Up to 50% | Climate-risk areas |
| Universal Broadband Fund | Internet infrastructure | Up to 90% | Rural & remote areas |
| Canada Community-Building Fund | Transit, waste, roads, recreation | Formula-based | Ongoing small-town needs |
How to Apply for Infrastructure Funding
Here are the steps your municipality should follow:
1. Check Eligibility
Review each program’s requirements to make sure your town and project qualify.
2. Build a Strong Proposal
Include detailed technical plans, timelines, cost estimates, community benefits, and sustainability goals.
3. Get Community Stakeholders Involved
Engage local leaders, engineers, planners, and economic development officers early in the process.
4. Apply Through Official Channels
Most applications go through platforms like:
5. Be Ready to Report
If you’re approved, you’ll need to track project progress, report milestones, and comply with audits.
FAQs: Federal Grants for Ontario Small Towns
Q: Can our town apply for more than one grant?
Absolutely. Many towns combine grants to fund larger, multi-phase projects.
Q: Will our town need to pay part of the project cost?
Yes, most grants are cost-sharing. But some programs — like the Green & Inclusive Community Buildings grant — may cover up to 100% for specific communities.
Q: How long does it take to receive the funding?
It varies. Some programs respond within 3–6 months, while others may take longer, especially if they’re highly competitive.
Q: Can we partner with local nonprofits or businesses?
Yes! Partnerships can actually strengthen your application by showing community-wide involvement.
Q: What if the project runs over budget?
In most cases, your town will be responsible for covering cost overruns unless otherwise negotiated.
Final Thoughts
For small towns across Ontario, federal infrastructure grants are more than just financial support — they’re a way to future-proof essential services and improve quality of life. Whether you’re upgrading water systems, expanding broadband, or building climate-resilient infrastructure, these programs can help get the job done.
If your town is ready to build a stronger future, now’s the time to start planning and applying.
