OPINION: Municipalities Caught Between a Trump and a Hard Place

Canadian municipalities are finding themselves facing an unprecedented storm of challenges, abandoned by the provincial and federal governments that are increasingly preoccupied with global and continental issues. The situation has left local governments grappling with problems that demand urgent attention, while higher levels of government appear to have turned their focus south of the border to engage with the United States under the renewed presidency of Donald Trump.

As Ottawa and provincial capitals prioritize cross-border trade, security concerns, and geopolitical maneuvering, Canadian municipalities are being left to fend for themselves, struggling to address the urgent issues of housing, infrastructure, and public safety.

Donald Trump's return to the White House in 2025 has brought significant shifts in the North American political landscape. His administration’s America-first policies have forced Canada into a delicate diplomatic dance, with federal leaders investing their energy in maintaining trade agreements, addressing border security, and participating in bilateral talks to safeguard Canada’s economic stability.

Meanwhile, provincial governments, particularly in border regions, are focused on fostering cross-border relations to secure investments and protect industries tied to the U.S. economy.

While this southward gaze might be understandable from a macroeconomic perspective, it has come at a significant cost. Municipalities, the closest level of government to the people, are being left to shoulder the burden of domestic issues with dwindling support. The resulting disconnect has exacerbated long-standing problems, leaving local leaders scrambling for solutions to crises that demand resources and coordination far beyond their capacity.

One of the most glaring challenges facing municipalities in 2025 is the housing crisis. Across the country, affordable housing is increasingly out of reach for many Canadians. Urban centres like Toronto, Vancouver, and Montreal have seen skyrocketing real estate prices and rents, while smaller cities and rural areas struggle to attract investment in housing development. Homelessness has reached record levels, with encampments becoming a common sight even in traditionally affluent neighbourhoods.

Municipalities are on the frontlines of this crisis, yet they lack the financial tools and policy levers needed to effect meaningful change. While cities have implemented stopgap measures such as rent controls and temporary shelters, these initiatives are mere band-aids on a gaping wound. The federal government’s National Housing Strategy, once hailed as a game-changer, has faltered due to inadequate funding and a lack of follow-through.

Provinces, for their part, have often treated housing as a municipal problem, sidestepping their responsibilities.

Canada’s infrastructure deficit is another issue that municipalities are grappling with in isolation. Roads, bridges, water systems, and public transit networks across the country are aging and in dire need of repair or replacement. Extreme weather events, intensified by climate change, have added urgency to the need for resilient infrastructure. Municipalities are struggling to maintain basic services, let alone invest in upgrades that would prepare their communities for the future.

The federal government and provincial governments have been slow to act, often diverting funds to politically advantageous projects rather than addressing pressing local needs. As a result, municipalities are left with the impossible task of funding multi-million or billion-dollar projects on shoestring budgets. The reliance on property taxes, an inherently regressive revenue source, has further deepened inequalities within and between communities.

Municipalities are also grappling with a surge in public safety challenges, including rising crime rates, mental health crises, and the opioid epidemic. Police services, paramedics, and social workers are stretched to their limits, while funding remains stagnant or, in some cases, has been cut. The COVID-19 pandemic’s aftermath has only exacerbated these issues, leaving many communities with frayed social fabrics and weakened safety nets.

Here, too, municipalities are left holding the bag. Federal and provincial governments have failed to provide adequate support for mental health and addiction services, despite growing evidence that these issues require a coordinated, multi-level response. The result is a patchwork of underfunded programs that fail to meet the needs of vulnerable populations.

The growing disconnect between municipalities and higher levels of government is not just a policy issue—it’s a political one. Local leaders are increasingly vocal about their frustrations, calling out provincial and federal governments for neglecting their responsibilities. This tension has led to strained relationships and, in some cases, open conflict.

The political fallout is also being felt by ordinary Canadians, who see their quality of life deteriorating while governments bicker over jurisdictional responsibilities. Trust in government, already fragile, is eroding further, fueling populist movements and anti-establishment sentiments. The danger is clear: if municipalities continue to be sidelined, the social and political fabric of the country could unravel.

Addressing these challenges requires a fundamental shift in how Canada’s federal and provincial governments engage with municipalities. First and foremost, higher levels of government must recognize that the issues facing municipalities are national. Housing, infrastructure, climate resilience, and public safety are not just local concerns—they are challenges that affect the entire country and demand coordinated, collaborative solutions.

A renewed commitment to municipal funding is essential. This includes increasing transfers to cities and towns, streamlining grant applications, and ensuring that funding is flexible enough to meet local needs. Provinces must also step up, working in partnership with municipalities to address shared priorities rather than offloading responsibilities.

Furthermore, municipalities must be given a greater voice in national and provincial decision-making. This could involve formalizing their role in intergovernmental forums or establishing new mechanisms for municipal input on key policies. Empowering local governments is not just a matter of fairness—it’s a pragmatic necessity in a rapidly changing world.

Finally, all levels of government must recommit to addressing the root causes of the challenges facing municipalities. This means investing in affordable housing, modernizing infrastructure, taking bold action on climate change, and strengthening social services.

In 2025, Canadian municipalities are at a crossroads. They are grappling with complex, interrelated challenges that demand coordinated action and sustained investment. Yet, as federal and provincial governments turn their attention southward, local leaders are being left to navigate these crises alone. The consequences of this neglect are profound, threatening not only the well-being of communities but also the cohesion of the nation as a whole.

It is time for Canada’s leaders to look closer to home.

The challenges facing municipalities are not insurmountable, but they require a renewed commitment to collaboration, investment, and shared responsibility.

If we fail to act, the costs—economic, social, and political—will be far greater than we can afford. The choice is ours to make, and the time to make it is now.