OTTAWA – The governments of Ontario and Ottawa are announcing a funding package of up to $1 billion to assist municipalities across the province in developing infrastructure for additional housing.
This funding will be directed toward municipalities that do not impose development charges for essential services such as roads, bridges, and water systems.
Both the provincial government and the federal government are contributing $500 million each.
Federal Housing Minister Gregor Robertson states that this collaboration will help reduce initial costs and increase the availability of housing.
Ontario’s acting infrastructure minister Todd Mc Carthy emphasizes that this initiative aims to strengthen local economies during these uncertain times caused by U. S. tariffs.
Municipalities eligible for this funding can start applying on Oct. 29, 2026, with selected projects expected to be announced in the spring.
At a press conference on Sunday, Mc Carthy noted that one of the major challenges hindering new housing developments is the expense associated with constructing and upgrading infrastructure.
“We know that many municipalities are dealing with repair backlogs, higher construction costs, and limited funding sources for critical infrastructure projects – especially when they do not implement development charges,” he said.
Robin Jones, president of the Association of Municipalities of Ontario, praised this initiative, highlighting that infrastructure challenges can be particularly tough for rural, small, and northern communities.
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