Federal government builds strong infrastructure across Ontario

OTTAWA, ON, Aug. 18, 2026 /CNW/ -- The Government of Canada is delivering $932 million to the Association of Municipalities of Ontario (AMO), the City of Toronto and the Government of Ontario in fiscal year 2026-2027 to invest in modern and reliable infrastructure that builds stronger, more affordable communities for Canadians. As part of this investment, AMO will receive $746 million and the City of Toronto will receive $183 million to make strategic infrastructure investments across 19 project categories. Ontario's Ministry of Transportation will receive $2.2 million to help local roads boards support safe and efficient travel in unincorporated communities.

Each year, the Community stream of the Build Communities Strong Fund delivers stable and flexible funding to communities across the country to support local infrastructure priorities, including public transit, water systems, and local roads and bridges.

Announced by Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure, and joined by Robin Jones, President of the Association of Municipalities of Ontario, the federal government is delivering on its commitment to build the infrastructure that Canadians rely on every day.

For example, the City of Belleville is using $5.3 million of previously allocated Community stream funding to support the construction of the new Avonlough Pump Station and upgrade the existing Wastewater Treatment Plant. By strengthening wastewater infrastructure, the project will unlock approximately 9,000 units of future housing, helping to address affordability in Belleville.

In Mississauga, Community stream funding is upgrading and expanding the local public transit network. This includes using over $4.4 million of previously allocated funding to support the construction of a new bus terminal downtown and 1.5 kilometres of grade-separated bus route. Public transit helps to connect residents to homes, jobs, schools, and essential services, supporting more sustainable and productive communities.

Toronto applies its Community stream allocation to maintaining and upgrading its public transit system, which is one of the largest in North America. This funding supports many projects and initiatives, including the Toronto Transit Commission's upgrading of transit vehicle maintenance and storage facilities to transition to a zero-emission transit fleet. It is also contributing to greater accessibility for transit users by improving subway stations with elevators, accessible doors, ramps and wayfinding.

Ontario's Ministry of Transportation applies its Community stream allocation to help local roads boards support safe and efficient travel in unincorporated communities.

By working in partnership with provinces and territories, Canada's government is making the investments needed to build more homes, strengthen communities, and grow a more resilient economy – to build Canada strong.

Quotes 

"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. We are proud to continue administering this key program with our partners at the Government of Ontario, the City of Toronto and the Association of Municipalities of Ontario."

Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure

"This funding empowers municipalities to invest in the projects and priorities that matter most to their communities. Together, we are helping protect Ontario by providing local governments with the resources they need to support growth and build strong, vibrant communities for generations to come."

The Honourable Rob Flack, Ontario's Minister of Municipal Affairs and Housing

"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. 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."

The Honourable Prabmeet Sarkaria, Ontario's Minister of Transportation

"Today's announcement shows what is possible when governments work together. I want to thank our federal partners for their commitment to investing in Toronto's infrastructure. This investment means we can continue to build a more reliable and accessible transit system that connects Torontonians to jobs, schools and essential services. Together, we are making the investments needed to build a more affordable and caring Toronto for everyone."

Her Worship Olivia Chow, Mayor of the City of Toronto

"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 government's investment recognizes that municipal infrastructure is foundational to strong communities, a clean environment, and a growing economy. AMO looks forward to continuing our work with the federal and provincial governments to advance the infrastructure priorities that are critical to communities and to addressing housing and affordability."

Robin Jones, President, Association of Municipalities of Ontario

Quick facts 

• Starting in 2026-27, the Build Communities Strong Fund will deliver funding through three major streams:
  • A Provincial and Territorial stream, which provides $17.2 billion over 10 years, including $5 billion in health infrastructure funding over 3 years;
  • A Community stream (formerly the Canada Community-Building Fund), which provides $27.8 billion over 10 years, starting in 2026-27, and is indexed at 2% to deliver $3 billion per year ongoing; and
  • A Direct Delivery stream, which provides $6 billion over 10 years.
• The Community stream of the Build Communities Strong Fund delivers $2.5 billion to 3,700 communities across the country to support local infrastructure priorities every year. In 2026-27, the Association of Municipalities of Ontario will receive $746 million, and the City of Toronto will receive $183 million to make strategic infrastructure investments across 19 project categories. The Government of Ontario's Ministry of Transportation will receive $2.2 million for local roads boards.
• The Community stream is a permanent, indexed source of funding provided to provinces and territories, who in turn, flow this funding to local governments and other entities to support local infrastructure priorities.
• The Community stream ties access to funding to actions by provinces, territories, and municipalities to support infrastructure projects that help increase housing supply and build connected communities.

Related Product

Backgrounder: Federal government builds strong infrastructure across Ontario

Associated Links 

Prime Minister Carney launches the Build Communities Strong Fund and announces the first tranche of projects
Build Communities Strong Fund Community stream
Build Communities Strong Fund (City of Toronto)
Association of Municipalities of Ontario: 2024-2028 Allocations 

Follow us on X, Facebook, Instagram and LinkedIn
Web: Housing, Infrastructure and Communities Canada 

SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Arianna Durgerian, Press Secretary, Office of the Minister of Housing and Infrastructure, [email protected]; Media Relations: Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]