Open this photo in gallery: Ontario Minister of the Environment, Conservation and Parks Todd Mc Carthy speaks at a press conference at Queen’s Park in Toronto, on Oct. 20, 2025. Laura Proctor/ Ontario and Ottawa are revealing a plan to invest up to $1 billion aimed at assisting municipalities across the province in creating infrastructure for additional housing. These funds will support municipalities that currently do not charge development fees for essential services like roads, bridges, and water systems. Both the Ontario government and the federal government are contributing $500 million each. Federal Housing Minister Gregor Robertson stated that this collaboration will help reduce upfront costs while increasing housing availability. Ontario’s acting infrastructure minister Todd Mc Carthy emphasized that this initiative is about bolstering local economies during these uncertain times impacted by U. S. tariffs. Applications for eligible municipalities seeking funding will open on Oct. 29, 2026, with selected projects announced in the spring. At a news conference on Sunday, Mc Carthy mentioned that they’ve recognized one of the main obstacles to new housing development is the expense related to building and upgrading necessary 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 areas as well as small and northern communities.
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