Ontario’s provincial government and the Government of Canada announced a joint $1 billion funding program on August 16, 2026 to support the construction and renewal of critical infrastructure in municipalities that do not levy development charges. The initiative was unveiled at the opening session of the Association of Municipalities of Ontario conference in Ottawa, marking the first major commitment of its kind for fee‑free municipalities across the province.
The program is designed to provide direct financial assistance to municipalities that have chosen not to charge development fees, allowing them to build and upgrade essential services such as water and wastewater systems, roads, transit facilities and other public works. By targeting fee‑free jurisdictions, the funding aims to reduce reliance on development charges as the primary source of capital for infrastructure projects.
Officials from both levels of government described the $1 billion allocation as a collaborative effort to address infrastructure gaps in communities that have limited revenue streams for large‑scale capital projects. The funding will be distributed through a framework that aligns provincial and federal resources, ensuring that participating municipalities can access the capital needed for both new construction and the renewal of aging assets.
The announcement coincided with the Association of Municipalities of Ontario’s annual conference, bringing together municipal leaders to discuss challenges and opportunities in local governance. The program’s launch is expected to provide a measurable boost to infrastructure development in fee‑free municipalities, helping them meet growing demand for reliable services without imposing additional charges on developers or residents.
The $1 billion aid package reflects a broader strategy by Ontario and the federal government to strengthen the province’s infrastructure base while supporting municipalities that have opted for a fee‑free model of growth. The initiative is set to roll out over the coming years, with details on application processes and eligibility to be released by the respective ministries.