Federal Infrastructure Minister Amarjeet Sohi released a letter last week that was sent to all provincial finance ministers, outlining the details of the federal government's framework for Phase 2 infrastructure funding. According to the letter, provincial government's will be required to pay at least 33 per cent of the costs of municipal projects, while the federal government will provide up to 40 per cent. 

Negotiations for phase 2 funding are expected to be finished by March 2018. You can read the Minister's full letter here. 

For more: 

AMO: Investing in Canada Infrastructure Plan - Phase 2 Negotiations