Mississauga officials say more than $401 million received on Thursday from the provincial and federal governments will help build “important new transit projects” and other infrastructure to pave the way for much-needed additional housing.

The $401.4 million in funding comes via the Development Charges Reduction Program, a joint initiative of the province and Ottawa that helps municipalities who’ve reduced development charges invest in infrastructure needed to support growth.

City officials said Mississauga was one of the first cities in Ontario to substantially reduce, or in some cases eliminate altogether, development charges to help get more homes built and make them more affordable.

Mississauga will maintain those reductions until March 31, 2029.

“Mississauga acted early to help get more homes built and make them more affordable for our residents,” Mayor Carolyn Parrish said in a news release following Thursday’s surprise announcement in Mississauga, adding the funding received “demonstrates the value of that leadership. This significant investment from our government partners will help us deliver the infrastructure needed to support new homes in every neighbourhood. It will also help better connect residents and visitors to our downtown. Together with our government partners, we are building the homes, transit connections and community assets needed for a growing city.”

Representatives from the city and both provincial and federal governments were on hand for the funding reveal, to which the media was not invited.

Senior levels of government said Thursday the money for Mississauga recognizes its “early leadership in reducing development charges.”

The funding will help build more homes and community infrastructure in Mississauga “while advancing the province’s plan to protect Ontario by investing in projects that lower costs for families, support economic growth and keep workers on the job,” the province said.

Ontario Premier Doug Ford added that “in the face of (U.S.) President (Donald) Trump’s latest tariffs, we’re working with all levels of government to lower costs for families, keep workers on the job and get shovels in the ground faster on new homes.

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“Mayor Parrish and Mississauga council were early leaders in lowering development charges and with today’s announcement of new provincial and federal funding for housing-enabling infrastructure, we’re continuing our progress to make homes more affordable for families in Mississauga and across Ontario.”

Government officials added that the reduction in development charges over a four-year period is estimated to reduce the cost of building new homes by up to $36,140 per home.

“When combined with the up to $130,000 in savings enabled through the expanded HST relief on eligible new homes, these initiatives could save Mississauga families up to $166,140 off the cost of a new home,” the province said.

Housing-enabling infrastructure projects in Mississauga to be aided by the $401-million funding infusion include:

Constructing a new zero-emission transit maintenance and storage facility in northwest Mississauga, including a bus storage area, maintenance garage and associated infrastructure
Delivering integrated transit infrastructure in downtown Mississauga, including the Transit Mobility Hub, transitway connections, bus platforms, pedestrian and cycling facilities, utility relocations, as well as infrastructure that supports retail, office, housing and surrounding development.

“These investments, which the city has long advocated for, will help support Mississauga’s growing population and deliver lasting benefits for residents and businesses,” the City of Mississauga said.

In an email statement following Thursday’s funding announcement, former Mississauga mayor Bonnie Crombie, who’s seeking a return to the seat in the Oct. 26 mayoral election, said she supports reducing development charges to help get more homes built.

However, Crombie added she believes “the current mayor left money on the table.”

She said both Hamilton and Vaughan secured significantly more funding per resident than Mississauga through the Development Charges Reduction Program.

“Mississauga is the largest of the three cities, yet received the smallest grant,” Crombie said, adding the mayor “has to fight for Mississauga’s fair share, not simply accept what is offered.”

Two weeks ago, shortly after returning from the 2026 Association of Municipalities of Ontario conference in Ottawa, Parrish told INsauga.com the city was poised to receive a large funding cheque from senior levels of government. However, she did not specify the amount that was on its way.


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