The New Deal for Cities was a federal initiative in the early 2000s that recognized cities' importance to national prosperity and committed to improved federal-municipal relationships. Key elements included sharing federal gas tax revenue with municipalities for infrastructure, establishing direct federal-municipal dialogue, and acknowledging that cities required sustained investment. While not a formal constitutional change, the New Deal represented significant shift in federal recognition of municipal needs. Gas tax funding established through this initiative continues today as the Canada Community-Building Fund. The New Deal era influenced ongoing discussions about federal urban policy, municipal funding, and the place of cities in Canadian federalism.