Supporting Alberta’s growing communities

Applications are open for the Local Growth and Sustainability Grant to help relieve pressure on public infrastructure in Alberta’s fastest growing municipalities.

Many of Alberta’s cities and towns are experiencing population growth that increases the demand on public infrastructure needs such as roads, bridges and water treatment systems. To help municipalities experiencing population growth-related pressures on public infrastructure, Alberta’s government has introduced the Local Growth and Sustainability Grant (LGSG), providing $60 million over three years to help meet this challenge.

“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. 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.” — Ric McIver, Minister of Municipal Affairs

As a complement to Alberta’s other existing infrastructure programs, such as the Local Government Fiscal Framework, the LGSG is an application-based program that will be open to municipalities experiencing significant growth and related infrastructure pressures. The program will also support municipalities seeking to capitalize on specific economic development opportunities.

The LGSG has two components. The growth component (approximately $15 million in 2024-25) is meant to help mid-sized communities with populations between 10,000 and 200,000 meet growth-related infrastructure needs such as vital roadways. The sustainability component (approximately $5 million in 2024-25) is meant to help smaller communities with populations fewer than 10,000 address pressing health or safety issues, such as water treatment.

“Our province is growing, and I am proud to see Alberta’s government make yet another investment to create jobs, improve our communities and grow our local economy. I’m excited to see the opportunities ahead for growing municipalities like our city.” — Nathan Neudorf, MLA for Lethbridge-East

“Like many Alberta municipalities, Lethbridge is experiencing growth pressures. The Local Growth and Sustainability Grant offers essential funding opportunities for our priority projects, such as expanding the Wastewater Treatment Plant and enhancing efforts to recruit more healthcare workers. We are grateful to the province for introducing this new funding stream, and we look forward to submitting competitive proposals that ensure a sustainable and healthy community for our residents.” — Blaine Hyggen, mayor of Lethbridge

Applications for the LGSG are now open and close on Nov. 29.

Quick facts

• Projects funded under the growth component will be cost-shared with the applicant municipal government.  Growth component funding will provide up to 50 per cent of project costs.

• In the 2025-26 fiscal year, municipalities will receive more than $820 million, an increase of over 13 per cent from Budget 2024.