Federal threats to withdraw housing funds: Minister Nixon

"Recently, the federal government informed the Government of Alberta of its decision to withdraw previously committed Housing Accelerator Funding from Red Deer, one of Canada's fastest-growing mid-sized cities, because Red Deer made decisions based on what was best for their community rather than bowing to Ottawa's zoning demands. It's worth noting that when Toronto did the same, funding commitments were maintained.

"The federal government has now issued an ultimatum: redirect the funding they stripped from Red Deer and provide it to other Alberta cities - primarily Edmonton - or lose it entirely.

"In stark contrast, earlier this week, the federal government announced an $8.8-billion deal with Ontario - a province that lags significantly behind Alberta when it comes to developing housing.

"Alberta's relationship with Ottawa has been improving, and housing is often an area where there is strong collaboration. That said, Alberta's government cannot stand idly by as Alberta communities are penalized for doing what is best for their residents, and as Alberta continues to receive less than its fair share of federal funding. Alberta and our municipalities know what works best for our communities.

"That is why I have written to the Honourable Gregor Robertson, Minister of Housing and Infrastructure, and made clear that while Alberta has approved these one-time increases to the Housing Accelerator Fund agreements for Edmonton and Airdrie, we will not sign off on further agreements until the City of Red Deer and other Alberta municipalities are treated fairly and provided the same flexibility that has been afforded to communities in other provinces.

"Situations like this are why Alberta's government passed the Provincial Priorities Act. The actions of the federal government continue to prove why this was necessary. We will not allow Alberta, and particularly rural Alberta and mid-sized communities, to be left behind."

Quick Facts

• Though Alberta represents 12 per cent of Canada's population and is the only province that saw a growing population in 2025, the federal government has allocated less than 7 per cent of recently announced $1.7 billion in housing funding to Alberta.
• Alberta is a national leader when it comes to housing.
  • Alberta has built the most housing starts per-capita in the country two years in a row.
  • In 2025, Alberta built nearly a quarter of the housing starts in the country and was responsible for 80 per cent of all housing starts in the prairies.

Quotes

"Building safe, resilient communities starts with housing. We urge the Government of Canada to prioritize results over process and to direct funding to communities that are getting homes built, like Red Deer and countless others across the province."

Cindy Jefferies, mayor, City of Red Deer

"When it comes to housing, municipalities of all sizes across Alberta should receive their fair share of federal funding. The Government of Canada should fund new housing construction fairly, equitably and transparently."

Dylan Bressey, president, Alberta Municipalities

"Alberta has consistently led the nation by maintaining one of the most efficient and affordable housing regulatory structures in Canada. It is fundamentally unfair to see the federal government reward provinces with broken systems through inequitable funding while ignoring the success of Alberta's housing industry. Our province deserves a fair share of federal housing supports to match the unprecedented growth we are seeing. Alberta shouldn't be punished for having a stronger regulatory framework; we should be supported in building more for Albertans."

Scott Fash, CEO, BILD Alberta

Related information

• Letter to the Honourable Gregor Robertson, Minister of Housing and Infrastructure
• Letter to the Honourable François-Philippe Champagne, Minister of Finance and National Revenue