Prime Minister Carney announces new initiatives for the City of Ottawa to build more homes, protect our communities, and elevate Canada's international leadership

OTTAWA, ON, Dec. 8, 2025 /CNW/ - Changes in the global trading system are causing massive disruptions and uncertainty for Canadians. The world has changed, and so Canada's economic strategy must change. Canada's new government is taking bold action to build housing at scale, protect our communities, and empower Canadians with new opportunities and lower costs.

Today, the Prime Minister, Mark Carney, alongside the Mayor of Ottawa, Mark Sutcliffe, announced a series of new and ambitious local measures to accelerate housing construction and address the drug crisis.

First, through its new agency, Build Canada Homes, Canada's new government has secured a new partnership with the City of Ottawa to build up to 3,000 mixed-income and affordable housing units across the city, beginning in 2026.

Through a joint investment of $400 million:

• The City of Ottawa will fast-track the construction of 2,000 mixed-income and affordable housing units on federal lands, including by reducing or waiving development charges, permit fees, and property taxes.
• Build Canada Homes will deploy financing for 1,000 affordable housing units from the City of Ottawa's slate of housing projects.
• The partnership will streamline permitting and development timelines to build more homes – and fast.

Projects under this partnership will maximise modern construction methods and operate under the government's new Buy Canadian Policy, prioritising Canadian lumber and other domestically sourced materials – strengthening supply chains and creating local careers for Canadians.

Second, the federal government will invest in a new pilot project to help address substance abuse in Ottawa. Through more than $1.2 million in funding to the City of Ottawa and the Canadian Centre on Substance Use and Addiction (CCSA), this project will:

• Implement city-led initiatives designed to reduce crime, deter substance use, and promote life-skills development.
• Support the development of a coordinated, adaptable, and system-level response to the drug crisis in Ottawa. The CCSA will work with the City of Ottawa, Ottawa Public Health, and regional partners to identify gaps, inefficiencies, and opportunities for greater collaboration with mental health services providers.
• Once completed, the framework will serve as a blueprint that can be adapted by other provinces and cities across Canada.

Third, the federal government and the City will work to identify projects to leverage Ottawa's over 300 defence companies. The federal government is rebuilding, rearming, and reinvesting in the Canadian Armed Forces – giving a pay raise to all Armed Forces members, investing $9 billion this year alone, and securing new agreements such as Canada's participation in the European Union's SAFE initiative.

Finally, Canada is a proud bilingual nation. As we elevate our global partnerships, the French language remains core to our identity and our leadership abroad. To that end, at today's event, the Prime Minister also announced Canada's bid to host the Sommet de la Francophonie in 2028, with the aim to host it specifically in the National Capital Region. La Francophonie represents one fifth of the global economy. Hosting the Summit will catalyse new economic partnerships across Francophonie countries to deepen trade, attract more investment, and showcase Canada's proud and distinct French-speaking communities.

By working in partnership with our nation's capital, the federal government is maximising the impact of our initiatives. These investments will help build more affordable homes, create safer, more resilient neighbourhoods, and support economic growth. When Ottawa and communities across the country thrive, Canada thrives – protecting our economy, our security, and the values that define our way of life.

Quotes

"Canada's new government is delivering a nation-building agenda with local partnerships. Our new agreements with the City of Ottawa will build more homes, protect our communities, and catalyse new opportunities for collaboration in defence and technology. We're building Ottawa strong and building Canada strong."

-- The Rt. Hon. Mark Carney, Prime Minister of Canada

"Today's historic housing agreement represents hundreds of millions of investment in our city to build a total of 3,000 affordable homes in Ottawa. We are working together to build more affordable homes, support those struggling with substance use, strengthen our local economy, and showcase our city on the world stage. Thank you to Prime Minister Carney and our local MPs for their support and collaboration on these important initiatives that will directly benefit the lives of our residents. We will keep working closely with our federal partners to make Ottawa safer, more reliable, and more affordable for everyone."

-- His Worship Mark Sutcliffe, Mayor of Ottawa

Quick facts

• Launched on September 14, 2025, Build Canada Homes is Canada's new federal agency with the mandate to scale the supply of affordable housing. It leverages public land, flexible financial tools, and modern construction methods to catalyse delivery of affordable housing, prioritising shovel‑ready projects and long‑term affordability.
• Canada's new government has acted decisively to keep our communities safe –from introducing the strongest border security legislation to crack down on gun trafficking and the flow of illegal drugs such as fentanyl, to investing in violence prevention programs. In October, we also introduced Bill C-14 to strengthen bail and sentencing laws and crack down on organised crime.
• La Francophonie is a group of around 90 countries, governments, and observers who share the French language and common values.
• As a founding member of the Organisation internationale de la Francophonie and its second-largest donor, Canada actively supports its mandate and initiatives – particularly to protect and promote the French language, as well as cultural and linguistic diversity.

Associated links

• Build Canada Homes
• Canada and La Francophonie

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

PMO Media Relations: [email protected]