Matched funding is a financing arrangement where government grants require recipients to contribute their own funds, creating shared investment in projects. Federal infrastructure programs commonly require provincial and municipal matching contributions, with typical arrangements splitting costs three ways. For example, a program might fund one-third federal, one-third provincial, and one-third municipal. Matching requirements ensure local commitment to projects and leverage limited federal dollars to achieve greater total investment. However, matching requirements can disadvantage smaller or poorer municipalities that struggle to fund their shares. Some programs adjust matching ratios for different community sizes or circumstances.