The Municipal Grants Amendment Regulations, 2026, made under The Municipal Grants Act introduces revisions to Saskatchewan’s municipal funding framework.

A key change is the restructuring of allocation rules under section 6 of The Municipal Grants Regulations. The amendment replaces the previous introductory wording to clarify that, subject to specified sections (24 to 25.4), municipal funding under section 5 must be distributed according to updated allocation rules. This signals a shift toward integrating new conditional funding mechanisms into the core grant distribution model.

The regulations also simplify and modernize rural municipality funding calculations. Section 20 is repealed and replaced with a revised formula for determining the “per capita amount” used in the rural municipal grant allocation system. The new formula explicitly accounts for multiple funding components, including allocations to rural municipalities, payments to certain municipalities, organized hamlets, and overall population totals. This revision aims to improve transparency and recalibrate funding based on updated demographic and fiscal variables.stream

The most substantial policy development is the introduction of new sections 25.3 and 25.4, which create two new discretionary grant streams: “Communities in transition” and “Strategic initiatives.”

The “Communities in transition” program enables the Minister to reallocate withheld municipal revenue-sharing funds to support municipalities undergoing restructuring. Eligible costs include feasibility studies, administrative expenses, infrastructure rehabilitation or decommissioning (including water, wastewater, waste management, and abandoned buildings), and ongoing operating costs for municipalities absorbing dissolved entities. The minister is granted broad discretion in approving applications, determining funding rates (up to 100% for certain costs), and assessing eligibility based on financial capacity and public interest considerations. Operating cost support may extend for up to 10 years following municipal dissolution, subject to annual review, budget availability, and public interest determinations. Any grant exceeding $50,000 requires approval from the Lieutenant Governor in Council, introducing an additional oversight layer for larger expenditures.

The “Strategic initiatives” program allows remaining withheld funds to be directed toward municipal associations for broader initiatives affecting municipalities. These initiatives must address identified municipal needs and serve the public interest. Similar to the transition program, approvals exceeding $50,000 require Lieutenant Governor in Council authorization.

The regulations also adjust section 26 to reflect these new funding mechanisms, replacing references to the repealed sections with the newly introduced provisions.

Saskatchewan (136/2026) April 2, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.