A transfer payment agreement is a formal contract governing how federal (or provincial) funding flows to recipient organizations for specific programs or projects. Transfer agreements specify funding amounts, eligible expenditures, reporting requirements, performance measures, audit rights, and accountability provisions. Federal infrastructure programs use transfer agreements with provinces or municipalities to deliver project funding. Agreements typically require matching contributions from recipients, compliance with federal requirements, and regular progress reporting. Contribution agreements involve more oversight than grants. Transfer payment management involves navigating complex accountability requirements while delivering projects. Understanding and complying with transfer agreement terms is essential for municipalities accessing federal and provincial funding programs.