The federal government is transferring $932 million in infrastructure funding to Ontario for the 2026–2027 fiscal year under the Community stream of the Build Communities Strong Fund.
The funding distribution targets three main entities:
Association of Municipalities of Ontario (AMO): Receiving $746 million to distribute among municipalities statewide across 19 eligible project categories.
City of Toronto: Allocated $183 million to fund local infrastructure and transit projects.
Ontario Ministry of Transportation: Receiving $2.2 million to support local roads boards in unincorporated communities.
The transfer is intended to assist local governments in maintaining aging assets, expanding public transit, and upgrading core services to support population growth and housing development.
“Building the highways, roads and bridges to keep traffic flowing across Ontario is a collective effort, and we appreciate the partnership of the federal government in supporting Local Roads Boards,” said Prabmeet Sarkaria, Ontario’s Minister of Transportation. “Today’s announcement complements actions we are taking to deliver transportation infrastructure Ontarians can depend on for years to come, including through the Ontario Transit Investment Fund and the Road Safety Initiatives Fund.”
Municipalities are directing their shares of the fund toward specific local priorities, including previous allocations under the same program stream:
Toronto: Applying its $183 million allocation toward its public transit network. Projects include upgrading Toronto Transit Commission (TTC) maintenance and storage facilities to support zero-emission vehicles, alongside adding elevators, ramps, accessible doors, and wayfinding to subway stations.
Belleville: Utilizing $5.3 million from prior stream allocations to build the new Avonlough Pump Station and upgrade its Wastewater Treatment Plant, a project designed to service up to 9,000 new housing units.
Mississauga: Directing over $4.4 million in past program funding toward transit infrastructure, including a new downtown bus terminal and 1.5 kilometres of dedicated bus lanes.
“Ontarians are concerned about aging infrastructure and housing affordability in their communities. The Community stream of the Build Communities Strong Fund gets municipalities and roads boards across Ontario the resources they need to build critical infrastructure, address affordability, and prepare for long-term growth,” said Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure. “Predictable, stable infrastructure funding is a best-in-class approach that gives municipalities the certainty to plan for the long term, renew aging assets and support growth.”
The federal transfer model delivers funding directly to municipal entities and provincial ministries, allowing local authorities to determine specific project selections within the 19 designated funding categories.