Ontario Construction News staff writer
The federal government is providing $932 million in infrastructure funding to Ontario for the 2026-2027 fiscal year through the Community stream of the Build Communities Strong Fund.
This funding will be distributed among three primary groups:
Association of Municipalities of Ontario (AMO): Set to receive $746 million to allocate across municipalities throughout the province for 19 eligible project categories. City of Toronto: Getting $183 million to support local infrastructure and transit initiatives. Ontario Ministry of Transportation: Receiving $2.2 million to aid local roads boards in unincorporated regions.
This transfer aims to help local governments manage aging infrastructure, enhance public transit, and upgrade essential services to accommodate population growth and housing development.
“Building the highways, roads and bridges to keep traffic flowing across Ontario is a collective effort, and we appreciate the partnership of the federal government in supporting Local Roads Boards,” said Prabmeet Sarkaria, Ontario’s Minister of Transportation. “Today’s announcement complements actions we are taking to deliver transportation infrastructure Ontarians can depend on for years to come, including through the Ontario Transit Investment Fund and the Road Safety Initiatives Fund.”
Municipalities are focusing their portions of the fund on specific local needs, including earlier allocations from this same program stream:
Toronto: Planning to use its $183 million allocation for its public transit system. Projects include upgrades at Toronto Transit Commission (TTC) maintenance and storage facilities for zero-emission vehicles, along with adding elevators, ramps, accessible doors, and wayfinding features at subway stations. Belleville: Using $5.3 million from past allocations to build a new Avonlough Pump Station and upgrade its Wastewater Treatment Plant aimed at serving up to 9,000 new housing units. Mississauga: Applying over $4.4 million from previous program funds towards transit projects like a new downtown bus terminal and 1.5 kilometers of dedicated bus lanes.
“Ontarians are concerned about aging infrastructure and housing affordability in their communities. The Community stream of the Build Communities Strong Fund gets municipalities and roads boards across Ontario the resources they need to build critical infrastructure, address affordability, and prepare for long-term growth,” said Jennifer Mc Kelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure. “Predictable, stable infrastructure funding is a best-in-class approach that gives municipalities the certainty to plan for the long term, renew aging assets and support growth.”
The federal transfer model allows funding directly into municipal entities and provincial ministries so that local authorities can choose specific projects within 19 designated funding categories.
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