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Big City Mayors call for federal action to bolster downtowns, drive economic growth

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Mayors from Canada’s largest cities are urging the federal government to boost infrastructure funding, tackle homelessness and address public safety concerns as part of a push to strengthen downtown cores and support economic growth.

The Big City Mayors’ Caucus, representing 23 municipalities, outlined a set of priorities this week ahead of the Federation of Canadian Municipalities’ annual conference in Edmonton, positioning them as key measures to help attract investment and sustain economic activity in urban centres.

City leaders say revitalizing downtowns is central to broader national economic goals, with impacts on employment, business activity and community well-being. The proposals are aimed at shaping federal decisions ahead of Budget 2026 and focus on infrastructure, housing and crime.

“Strong nations need strong downtowns. They are where investment takes shape; culture thrives, and some of our most pressing challenges intersect,” said BCMC chair Josh Morgan. “Canada’s economic success depends on vibrant downtowns, where housing, public safety, mobility and infrastructure work together to create places of opportunity, foster civic pride, support local businesses, and build strong, connected communities.”

Among the priorities, mayors are calling for increased and more predictable federal infrastructure funding to support transit systems, roads and bridges. They argue that reliable transportation networks and efficient movement of goods are critical factors in business location decisions and urban growth.

Hudson's Bay downtown Calgary. Photo by Mario Toneguzzi
Hudson’s Bay downtown Calgary. Photo by Mario Toneguzzi

Specifically, the caucus is asking Ottawa to at least double the Community Stream of the Build Communities Strong Fund to provide municipalities with stable revenue for infrastructure projects. It is also seeking to restore the Canada Public Transit Fund to $30 billion and enhance it to ensure long-term investment keeps pace with population and economic growth.

Housing and homelessness form another major pillar of the proposal. The mayors point to rising homelessness as both a social and economic concern, warning it can undermine investor confidence and signal broader systemic challenges.

They are recommending the federal government invest $3.5 billion annually to cut chronic homelessness by at least half by 2030, in line with advice from the parliamentary budget officer. The group also wants homelessness prevention embedded in an updated National Housing Strategy and is calling for a federally led working group to co-ordinate responses across jurisdictions, including mental health, addictions services, income supports and affordable housing.

Public safety, particularly organized crime, is the third area of focus. The caucus says issues such as illicit drugs, gun violence and extortion are affecting cities across the country and increasingly involve youth.

To address these concerns, the mayors are proposing enhancements to the Building Safer Communities Fund to expand community-based crime prevention initiatives. They also want the creation of a federal table bringing together municipal leaders and departments responsible for public safety, immigration and justice to examine enforcement gaps and co-ordinate responses, including consideration of international practices.

Hudson’s Bay/Saks Fifth Avenue flagships in downtown Toronto. The building at 176 Yonge Street began its life in 1898 as a Simpsons store. Photo taken April 23, 2025 by Craig Patterson

“Cities see the connection between homelessness, mental health, addictions, public safety, and the health of our downtowns every day,” said BCMC vice-chair Scott Gillingham. “In Winnipeg, we are working with frontline partners to better coordinate emergency response and community safety, but local action needs to be matched by sustained investment from federal and provincial governments. That means scaling up homelessness funding, supporting deeply affordable housing, and investing in the infrastructure that keeps downtowns safe, connected, and moving.”

The caucus says its recommendations reflect conditions being observed in communities across the country and represent initial steps toward strengthening urban cores and supporting long-term economic growth.

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Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Co-Editor-in-Chief with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

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