OTTAWA — Ontario and Ottawa are announcing up to $1 billion to help municipalities in the province build infrastructure for more homes.

The money will go to municipalities that do not collect development charges for things like roads, bridges and water systems.

The Ontario government and the federal government are each pitching in $500 million.

Federal Housing Minister Gregor Robertson says the partnership will lower up front costs and boost housing supply.

Ontario’s acting infrastructure minister Todd McCarthy says it’s about strengthening local economies amid the economic uncertainty of U.S. tariffs.

Applications for municipalities that are eligible for the funding will open on Oct. 29, 2026, with projects to be selected in the spring.

McCarthy said at a news conference Sunday the province has heard that one of the biggest barriers to new housing development is the cost of building and upgrading infrastructure.

“We know that many municipalities are dealing with repair backlogs, higher construction costs, and limited funding sources for critical infrastructure projects — especially when they do not implement development charges,” he said.

Robin Jones, Association of Municipalities of Ontario president, lauded the move, noting infrastructure pressures can be particularly challenging for rural, small and northern communities.

This report by The Canadian Press was first published Aug. 16, 2026.

The Canadian Press