Legislation introduced aimed at improving local governance funding and supporting communities

Release

Department of Environment and Local Government

May 07, 2025

FREDERICTON (GNB) – The provincial government has introduced amendments to the Community Funding Act that, if passed, would allow for a new funding model that will enable local governments to support communities.

“Local governments have been waiting far too long to get the funding support required to provide New Brunswickers with the services they need,” said Local Government Minister Aaron Kennedy. “Through this fiscal reform, we are taking action with significant investments for municipalities across the province. This new funding model will provide local governments with the stability they need in order to plan their budgets and deliver services to their communities.”

Last month it was announced that local governments will receive $138 million in 2026, an increase of $63 million from this year. The funding will grow to more than $188 million by 2030.

The funding model breaks down as follows:

• Fiscal Capacity Fund - $75 million. This fund will replace the existing Community Funding Grant. It will provide municipalities with a new equalization fund designed to support local governments in need.

• Regional Services Support Fund - $18 million. This fund will help regional service commissions implement their regional strategies. It can be used to supplement up to 50 per cent of the total funding for eligible initiatives.

• Capital Renewal Fund - $45 million. This new fund will support the improvement and replacement of existing municipal infrastructure.

“We are collaborating with local governments toward the same goal,” said Kennedy. “We are creating a fair funding model that enables local governments to deliver services to the people of New Brunswick.”

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Family, home and community