Yes, some have figured it out. I'm not going to point fingers at one order of government or another, but there's clearly a problem in some of these jurisdictions where the money is not moving.
The other problem is that it's not always clear, and it's hard for municipalities to understand how their projects are approved or not approved, who is making the decisions, and what criteria are being used. I could give you examples of smaller municipalities that have submitted proposals. In one case I know of, four proposals were submitted to the building Canada fund. None of them were approved.
They're puzzling over how it is that this project that's there to support them is almost like a crapshoot. They have to put all their money into preparing an application, and then it's kind of like it's out there in the ether somewhere, and they don't know if they're going to win the lottery or not.