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

OTTAWA — Ontario and Ottawa have jointly announced up to $1 billion in funding aimed at aiding municipalities throughout the province in constructing necessary infrastructure for the development of additional homes. A total of $500 million will come from the Ontario government, while the federal government will contribute an equal sum.

Federal Housing Minister Gregor Robertson stated that this collaborative effort will alleviate initial expenditures and stimulate housing availability. Ontario's Acting Infrastructure Minister, Todd McCarthy, emphasized that this initiative is geared towards fortifying local economies amidst the economic turbulence caused by U.S. tariffs.

Applications from eligible municipalities for this financial assistance will become available on October 29, 2026, with project selections anticipated in the spring. At a press conference held on Sunday, McCarthy expressed that the province has been made aware of one of the most significant impediments to new housing developments being the expense associated with building and upgrading infrastructure.

McCarthy noted that many municipalities are grappling with maintenance backlogs, escalating construction costs, and restricted funding sources for crucial infrastructure projects, particularly those that do not impose development charges. Robin Jones, the President of the Association of Municipalities of Ontario, applauded this decision, highlighting that infrastructure challenges can be particularly daunting for rural, small, and northern communities.