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 new housing across the province.
Under the agreement, Ontario and Ottawa will each contribute $500 million. The funding will be available to municipalities that do not collect development charges for infrastructure such as roads, bridges, water systems and other services required for residential growth.
Federal Housing Minister Gregor Robertson said the partnership is intended to reduce upfront infrastructure costs for communities while helping accelerate the construction of new homes. Ontario’s acting infrastructure minister Todd McCarthy said the investment will also support local economies as communities face economic uncertainty linked to U.S. tariffs.
McCarthy said municipalities have repeatedly identified the cost of constructing and upgrading infrastructure as a major obstacle to housing development. He noted that many communities are dealing with aging infrastructure, repair backlogs, rising construction costs and limited sources of funding, particularly in municipalities that do not impose development charges.
The Association of Municipalities of Ontario welcomed the announcement. AMO president Robin Jones said infrastructure pressures can be especially difficult for rural, northern and smaller municipalities to manage.
Applications for eligible municipalities are scheduled to open on Oct. 29, 2026, with projects expected to be selected in the spring.
