Flow-through funding refers to federal money that passes through provincial governments before reaching municipalities. Rather than transferring funds directly to municipalities, the federal government provides allocations to provinces under bilateral agreements, and provinces then distribute to local governments. This arrangement respects constitutional jurisdiction—municipalities are provincial responsibilities—while enabling federal investment in local infrastructure. Examples include much of the Investing in Canada Infrastructure Program and federal transit funding. Flow-through creates administrative layers but allows provinces to coordinate federal programs with their own priorities. Municipalities sometimes prefer more direct federal funding to reduce provincial intermediation, while provinces generally resist being bypassed. Flow-through arrangements raise questions about transparency (can municipalities see what federal allocation was intended for them?) and timeliness (do provincial processes delay fund disbursement?).