The governments of Canada and Ontario have announced a landmark $8.8-billion partnership aimed at accelerating housing development, improving affordability and expanding transit infrastructure across the province.
The announcement was made in Etobicoke by Prime Minister Mark Carney, Ontario Premier Doug Ford, and Olivia Chow, highlighting a coordinated effort to address Ontario’s housing shortage and growing infrastructure demands.
At the core of the initiative is a $4.4-billion investment over the next decade dedicated to housing-related infrastructure, designed to unlock new developments and support the construction of more affordable homes. The plan also includes measures to reduce overall housing costs, with officials stating that taxes and fees on new homes could be lowered by as much as $200,000.
A key component of the strategy involves incentivizing municipalities to reduce development charges by up to 50 per cent. In return, communities that adopt these measures will receive priority access to infrastructure funding, creating a collaborative approach between provincial, federal and municipal governments.
Speaking at the announcement, Prime Minister Carney emphasized the importance of cutting red tape and streamlining approval processes to accelerate construction timelines, while Premier Ford underscored the role of market-driven development supported by strategic government investment.
Mayor Chow welcomed the partnership, noting that federal and provincial support for infrastructure would allow municipalities like Toronto to lower development charges and facilitate the creation of more affordable housing units.
In addition to housing, the agreement outlines major investments in transit expansion. A new waterfront east transit line is planned to connect Union Station with the Port Lands and East Bayfront areas, serving more than 150,000 residents and supporting approximately 50,000 daily trips. The project is expected to enable the development of up to 75,000 new housing units.
The plan also includes the expansion of GO Transit services under the proposed “GO 2.0” initiative across the Greater Golden Horseshoe, alongside continued progress on several major transit projects. These include the Ontario Line, Eglinton Crosstown West Extension, Scarborough Subway Extension, Yonge North Subway Extension and Hamilton Light Rail Transit.
Further, both levels of government reaffirmed their commitment to advancing the ALTO high-speed rail project connecting Toronto to Québec City, signaling a broader vision for integrated regional mobility.
The announcement builds on recent measures, including a temporary removal of Harmonized Sales Tax (HST) on eligible new homes, aimed at stimulating housing construction and improving affordability.
Officials described the $8.8-billion initiative as a transformative step toward building complete, connected communities while addressing Ontario’s housing crisis and supporting long-term economic growth.
As Ontario continues to experience rapid population growth, the partnership reflects a shared commitment between governments to deliver housing, infrastructure and transit solutions that meet the needs of residents now and in the future.