Campbellton's $1.1M Infrastructure Bet to Unlock Housing Growth

CAMPBELLTON, NB – June 24, 2026 – A strategic, tri-level government investment of over $1.1 million is set to overhaul a critical piece of Campbellton’s underground infrastructure, a move designed not just to improve water quality but to directly unlock the construction of up to 200 desperately needed homes in the region.

Announced today, the project brings together more than $561,000 in federal funding, over $374,000 from the province of New Brunswick, and a municipal contribution exceeding $187,000. This capital will be used to replace a 50-year-old watermain and upgrade storm sewers on Notre Dame Street, a project that is fundamental to the city’s ambitious growth plans.

For residents, the upgrades promise better water quality and system reliability. But for the city and its future, the investment represents a crucial strategic shift: turning essential infrastructure renewal into a catalyst for significant residential development, including a proposed 60-unit apartment building and 12 designated low-income units.

Laying the Foundation for Growth

At the heart of the announcement is a problem familiar to many municipalities across Canada: aging infrastructure acting as a bottleneck to growth. Campbellton Mayor Michel Soucy highlighted the project's direct impact, stating, "Through these strategic investments, we are replacing a 50-year-old watermain with modern, higher-capacity infrastructure and upgrading our storm sewer system to support residential growth." He emphasized that the improvements would "significantly increase water flow, enabling proposed apartment buildings and future development to move ahead."

This isn't just a matter of convenience; it's a direct response to a mounting crisis. A June 2023 report from the Restigouche Regional Service Commission revealed a stark reality: Campbellton needs 101 new housing units annually to keep pace with demand. This pressure comes from a confluence of factors, including a regional population that is growing for the first time in two decades. The current construction rate of about 30 units per year is, as the report noted, "clearly insufficient."

This project, by providing the necessary water capacity, directly enables developers to break ground. As Mayor Soucy concluded, "Most importantly, this project will help deliver approximately 200 new housing units, reinforcing our commitment to addressing housing needs while building a stronger, more sustainable community for years to come."

A Blueprint for National Housing Strategy

The funding for Campbellton’s revival is a textbook example of the federal government's broader strategy to tackle the national housing crisis. The money flows from the Canada Housing Infrastructure Fund (CHIF), a $6 billion program established in Budget 2024. The fund’s core purpose is to finance the foundational infrastructure—water, wastewater, and stormwater systems—that must exist before homes can be built.

CHIF operates through two primary streams: a $1 billion direct-to-municipality fund for urgent projects and a larger $5 billion pool distributed through agreements with provinces and territories. The Campbellton project is funded via the latter, with New Brunswick set to receive approximately $150 million over ten years to administer to its communities. This cost-sharing model demonstrates a collaborative approach, leveraging federal dollars to spur provincial and municipal action.

Guillaume Deschênes-Thériault, Member of Parliament for Madawaska--Restigouche, framed the project as a model of this strategy. "By modernising and connecting our water distribution systems, we are improving the quality and reliability of the water supply for residents, whilst creating the capacity needed to build new housing," he said. "This is an excellent example of how the federal government's strategic investments in infrastructure help to strengthen our communities and promote long-term sustainable growth."

Echoing this sentiment, New Brunswick's Minister of Environment and Climate Change, Gilles LePage, added, "These upgrades will improve water services for residents while creating the capacity needed for new housing development, helping Campbellton grow and meet future demand."

Building More Than Homes: Economic Impact and New Federal Tools

Beyond the immediate goal of building homes, this investment signals a deeper strategic shift in economic development. The project itself will create jobs in the skilled trades, a sector facing significant labor shortages. Furthermore, the subsequent construction of 200 housing units will generate a powerful ripple effect, stimulating the local economy through material purchases, further employment, and an expanded residential tax base.

This project also operates in concert with another major federal initiative, the Build Canada Homes (BCH) agency. Launched in September 2025 and established as a Crown corporation just last week, BCH is tasked with directly accelerating the supply of affordable housing. While CHIF provides the groundwork, BCH aims to build on it by leveraging public lands, offering innovative financing, and promoting modern construction methods like factory-built homes.

Together, the two initiatives represent a comprehensive federal toolkit: CHIF ensures communities have the capacity for growth, while BCH helps ensure a significant portion of that growth is affordable. This dual approach is critical in regions like Campbellton, where child poverty rates exceed 40% and the need for affordable housing is acute.

A Multi-Layered Approach to a Local Crisis

The Notre Dame Street project is not happening in a vacuum. It is the latest move in a multi-pronged effort to transform Campbellton's housing landscape. In February 2024, the city secured over $4.5 million from the federal Housing Accelerator Fund (HAF) to fast-track development. That initiative focused on policy reform, incentivizing developers to build denser housing, streamlining permit processes, and allowing up to four units as-of-right on residential lots.

By April of this year, the HAF strategy was already bearing fruit, with 126 of a targeted 195 new units approved. The CHIF-funded infrastructure project now provides the physical capacity to support and even expand upon this policy-driven momentum.

Crucially, all federal funding is conditional on meeting rigorous environmental assessment standards and fulfilling the constitutional duty to consult with local Indigenous groups, including the Listuguj Mi'gmaq First Nation and the Eel River Bar First Nation. This ensures that as Campbellton builds for its future, it does so responsibly and inclusively, laying a foundation that is not only physically sound but also socially and environmentally sustainable.