The Municipal Financial Capacity Grant (MFCG) is an unconditional grant to support municipalities and towns in providing services to Nova Scotians. MFCG is legislated under the Municipal Grants Act, with the specific formula calculating the grant detailed in the accompanying regulations. The formula, modernized in 2024-25, attempts to measure a municipality’s cost to deliver a set of municipal services against its ability to pay for those services, when compared to similar municipalities. Under the modernized formula, some municipalities experienced a decrease in funding levels and a 5-year Transitional Support Program was established to ease the transition for the impacted municipalities.