Ontario and Canada are collaborating on a series of initiatives to build housing and infrastructure that strengthen both provincial and national economies. A key focus is the Development Charges (DC) Reduction program, under which $8.8 billion over 10 years will be cost-matched to fund housing-enabling infrastructure. The funding prioritizes municipalities that reduce and maintain DCs, offsetting costs that can add hundreds of thousands to new homes, while also supporting non-DC municipalities and other infrastructure projects across Ontario. Municipalities are required to submit ready-to-build projects and maintain DC reductions for at least three years.
The partnership also introduces a Harmonized Sales Tax (HST) rebate on new homes, removing the full 13 per cent HST for eligible buyers of homes up to $1 million, with scaled rebates for homes valued up to $1.85 million. The federal government will provide Ontario $875 million toward this effort, enhancing affordability for homebuyers.
Major transit projects are included in the agreement, starting with cost-sharing for the $3 billion Waterfront East Transit line serving Toronto’s East Bayfront and Port Lands, with Canada, Ontario, and Toronto each contributing one-third of the funding. GO 2.0 improvements aim to expand passenger service along freight-owned corridors in the Greater Golden Horseshoe, including new bypass tracks and potential new GO lines.
Canada and Ontario are also advancing the Alto High-Speed Rail initiative, connecting the Toronto–Quebec City corridor, and committing to conclude federal contribution agreements for priority transit projects in the Greater Toronto and Hamilton Area, including the Ontario Line, Eglinton Crosstown West Extension, Scarborough Subway Extension, Yonge North Subway Extension, and Hamilton LRT. These initiatives aim to accelerate housing, transit, and infrastructure development while supporting long-term economic growth and connectivity across Ontario.
