Ontario and Canada Sign Historic Partnership to Build Homes, Transit and Communities

March 30, 2026

Today’s agreement will be transformational for Ontario and Canada, delivering new homes, transit and infrastructure and supporting hundreds of thousands of good-paying jobs for Ontario workers.

Ontario and the federal government will cost-match a total of $8.8 billion over 10 years, focused on housing-enabling infrastructure projects.

• The majority of funding will be used to support the reduction by up to 50 per cent of municipal DCs, which can add hundreds of thousands of dollars to the cost of new homes in Ontario municipalities.
• Municipalities that receive funding through this program will be expected to make their own contributions to DC reductions, in addition to the funding received by the province and federal government.
• The province will work with municipalities and partners to put forward a list of infrastructure projects for approval with a focus on speed and efficiency.

These strategic investments will encourage new home construction and reduce barriers and costs to housing development to help more people realize the dream of homeownership.

The Canada-Ontario Partnership to Build also commits to:

• The HST Rebate on New Homes to provide homebuyers with up to $130,000 in tax relief.
• Three-way cost sharing between the Ontario, the federal government and the City of Toronto to construct the Waterfront East Transit line serving Toronto’s eastern waterfront, including the East Bayfront and Port Lands.
• Working to increase passenger service along freight-owned corridors across the Greater Golden Horseshoe region through GO 2.0.
• Collaborating to support the planning and advancement of the Alto High-Speed Rail initiative that will connect millions of people living along the Toronto–Quebec City corridor.
• Executing federal contribution agreements on announced transit projects, including the Ontario Line, Eglinton Crosstown West Extension, Scarborough Subway Extension, Yonge North Subway Extension and Hamilton LRT.

Our government will continue to deliver on our plan to protect Ontario in partnership with the federal government and municipalities by lowering the cost of building, getting shovels in the ground faster, cutting red tape and investing in workers.