Canada and Ontario Invest $1 Billion in Municipal Infrastructure

The Government of Canada and the Government of Ontario have announced a $1 billion investment to help Ontario municipalities build critical infrastructure necessary to support an increased housing supply. The funding is split equally, with each government contributing $500 million through the Build Communities Strong Fund and the Municipal Housing Infrastructure Program, respectively.

This initiative specifically targets municipalities that do not levy development charges, providing funds for water systems, bridges, and roads. The program aims to help local governments overcome repair backlogs and high construction costs that currently hinder housing development. This effort is part of the broader $8.8-billion Canada-Ontario Partnership to Build.

Federal Housing Minister Gregor Robertson stated the partnership will lower upfront costs and boost housing supply. Ontario's acting infrastructure minister Todd McCarthy noted that the move strengthens local economies during a period of economic uncertainty caused by U.S. tariffs. Applications for the Non-Development Charge Municipalities Stream open on October 29, 2026, with project selection expected in the spring.