Calgary–Banff Rail: Funding Deadlock Stalls Progress

CALGARY, ALBERTA — Labour unions signed on. Private investors lined up. The Canada Infrastructure Bank dangled $1.3 billion. But the $2.6 billion Calgary airport–Banff rail project still doesn't have the one thing it needs most: a check from the Alberta government.

On January 20, 2026, Canada's Building Trades Unions, the Building Trades of Alberta, and Friends of Calgary Airport–Banff Rail inked a Memorandum of Understanding to back the proposed rail line. It's a workforce planning deal, not a construction contract. The unions want the jobs. The province hasn't said yes.

The Money Problem

Here's the pitch: $1.5 billion from Liricon Capital, Plenary Americas, and the Canada Infrastructure Bank. Another $1.1 billion requested from Alberta taxpayers, mostly for the airport-to-downtown stretch. Total price tag: $2.6 billion.

The province? Radio silence on funding. Transportation Minister Devin Dreeshen said in December 2025 the process was "still very early" and needed to fit Alberta's broader passenger rail strategy. Translation: Don't hold your breath.

The project came in as an Unsolicited Proposal, meaning the proponents walked in the door with a plan the government didn't ask for. In December 2025, backers also asked Ottawa to designate it a "Project of National Interest." That federal stamp is still pending.

Wildlife vs. Rails

Conservation groups aren't celebrating. The Canadian Parks and Wilderness Society warned that running trains through Banff National Park could spike wildlife deaths along the corridor. The rail line would cut through one of Canada's most protected landscapes, raising questions about whether economic development trumps ecological risk.

The MOU signed this week is nonbinding. It's a handshake, not a groundbreaking. No funding has been approved. No shovels are hitting dirt.

What Happens Next

Minister Dreeshen remains the key decision-maker. The province is reviewing the proposal under its Unsolicited Proposal Framework. Funding decisions are expected during the Alberta Budget 2026 cycle. Federal designation as a "Project of National Interest" is also still up in the air.

For now, the Calgary–Banff rail project has labour backing, private money on standby, and a big ask sitting on a minister's desk.