Canada reaches deal with Quebec on billions of dollars in infrastructure funding

Prime Minister Mark Carney says the federal government has reached a new deal with Quebec to transfer billions of dollars in funding for infrastructure.

Prime Minister Mark Carney says the federal government has reached a deal with Quebec to transfer nearly $10 billion over 10 years to fund infrastructure projects.

Carney said the money could be used to build new hospitals, and invest in public transit.

He made the announcement Tuesday in Longueuil, Que., on Montreal’s South Shore, with Quebec Premier Christine Fréchette.

“This announcement is about strengthening Quebec, making communities across Quebec more prosperous, more sustainable, better health care, more connected, better places to live,” he said.

He added that the goal is to offer communities more rapid, affordable and dependable infrastructure.

Quebec will receive nearly $6 billion from Canada’s fund for public transit, which was first created in 2024 under former prime minister Justin Trudeau.

Carney said the money was “unblocked” after thorough discussions with Fréchette on Quebec’s priorities on health care and sustainable transportation.

“If we want to maintain our existing infrastructure — the infrastructure built by our parents and grandparents — we must secure our fair share of federal investment,” said Fréchette.

“Today, I am pleased to announce that Quebec is getting its fair share. In fact, it is receiving more than its fair share of federal investment.”

According to Fréchette, Quebec will receive more than 25 per cent of Ottawa’s envelope for public transit projects. She said the funding will also help bring the Quebec City tramway project to life.

Quebec will also receive $1 billion by 2028-29 to renovate and expand some 17 hospitals and $2.7 billion for higher education. Another $400 million will be dedicated to electrifying Quebec’s public transit fleets.

Opposition parties at the Quebec legislature questioned the timing of the announcement.

They say the Coalition Avenir Québec government is being strategic, a few months before a general election scheduled in the fall.


Carney insisted the move is “about policy, not politics.”

Fréchette said Quebec did not have to make any concessions to access the funding. She said that since she was named premier in April, talks with Ottawa have “significantly stepped up.”

This report by The Canadian Press was first published June 2, 2026.

Erika Morris, The Canadian Press