Ontario and Federal Governments Announce $1 Billion for Housing Infrastructure
The Ontario and federal governments have announced a joint investment of up to $1 billion to help municipalities build and upgrade infrastructure needed to support more housing across the province.
Under the partnership, Ontario and Ottawa will each contribute $500 million, with funding directed toward eligible municipalities that do not collect development charges for infrastructure such as roads, bridges and water systems.
Funding Aims to Reduce Housing Development Costs
Federal Housing Minister Gregor Robertson said the agreement is intended to reduce upfront development costs while helping increase the supply of new homes.
The funding is designed to address a major challenge faced by municipalities: the high cost of constructing or upgrading infrastructure required to accommodate new residential development.
Ontario’s acting infrastructure minister Todd McCarthy said the investment will also help strengthen local economies at a time when communities are facing economic uncertainty related to U.S. tariffs.
Municipal Applications Open October 29, 2026
Eligible municipalities will be able to submit applications for funding beginning October 29, 2026.
The governments expect to select successful infrastructure projects in the spring following the application process.
McCarthy said municipalities have repeatedly identified infrastructure costs as one of the biggest obstacles to increasing housing construction.
He noted that many communities are already dealing with repair backlogs, rising construction expenses and limited funding options for essential infrastructure, particularly municipalities that do not impose development charges.
Rural and Northern Communities Could Benefit
Robin Jones, president of the Association of Municipalities of Ontario, welcomed the funding announcement.
Jones noted that infrastructure pressures can be especially difficult for rural, small and northern municipalities, where communities may have fewer financial resources available to pay for major upgrades.
The new funding could help these municipalities improve essential infrastructure while creating additional capacity for residential development.
The $1 billion partnership between Ontario and Ottawa is intended to remove infrastructure-related barriers to housing construction while supporting municipalities facing rising costs and limited funding options.
With applications opening on October 29, 2026, eligible communities will have an opportunity to secure funding for projects that could support both new housing and longer-term local economic growth.
