A contribution agreement is a formal contract between the federal government and a recipient (often a municipality, province, or organization) that specifies terms for federal funding. These agreements detail the project being funded, eligible costs, payment schedules, reporting requirements, audit provisions, and compliance obligations. Federal infrastructure programs flow through contribution agreements that recipients must sign before receiving funding. Agreements typically require recipients to match federal contributions and follow specific rules about procurement, environmental assessment, and project implementation. Understanding contribution agreement requirements is essential for municipalities seeking federal funding, as non-compliance can result in funding clawbacks.