Ontario, Canada governments announce $1 billion for infrastructure to support housing

Ontario and Ottawa governments are announcing up to $1 billion in funding to assist municipalities in building infrastructure to accommodate more homes. The initial payment, including GST, will be $205, with a renewal of $233 every 52 weeks, a 10% discount from the regular annual price of $259.35. This offer is available to new subscribers and qualified returning ones, with the option to cancel at any time.

The funds will be allocated to municipalities that do not charge development fees for essential services such as roads, bridges, and water systems. Ontario's acting infrastructure minister, Todd McCarthy, and Federal Housing Minister Gregor Robertson, have each contributed $500 million to this partnership. The joint effort aims to reduce upfront costs and increase housing supply.

Applications for eligible municipalities to receive the funding will be accepted starting October 29, 2026, with project selections to be made in the spring. McCarthy explained that the primary barrier to new housing developments is the expense of constructing and upgrading infrastructure. Many municipalities face repair backlogs, increased construction costs, and limited funding sources for critical projects, especially when they do not implement development charges.

Robin Jones, president of the Association of Municipalities of Ontario, praised the initiative, highlighting that infrastructure challenges can be particularly difficult for rural, small, and northern communities. This news report, originally published by The Canadian Press on August 16, 2026, provides a comprehensive overview of the announced funding and its potential impact on housing development in Ontario.