Exciting news for municipal finances came out of the Association of Municipalities of Ontario (AMO) annual conference. The province announced $1.6 billion in funding to top up the Municipal Housing Infrastructure Program. The goal is to accelerate the construction of roads, bridges, and water systems to support housing development and population growth.
“We always welcome new funding announcements, especially when it relates to infrastructure, said Shawn Pankow, mayor of Smiths Falls.
This brings the program’s total funding to $4 billion, following a $400 million increase in the 2025 provincial budget.
“In the face of unwarranted U.S. tariffs, our government is doubling down on our plan to build and invest more than $200 billion through our capital plan to protect Ontario by getting shovels in the ground faster on the projects that matter most,” said Kinga Surma, Minister of Infrastructure.
So far, $33 billion has been disbursed since 2024, according to the provincial press release. The program includes four funding streams: the Housing-Enabling Water Systems Fund, the Housing-Enabling Core Servicing Stream, the Health and Safety Water Stream, and the Agriculture and Irrigation Stream.
“Although $1.6 Billion may appear like a big number, it works out to about $100 for each Ontarian. With a population of between 10,000 to 11,000, that translates into a proportionate share of approximately $1,000,000 for Smiths Falls. As it is application based and not proportionate, we will do our best to get our fair share,” said Pankow.
However, specific eligibility details for the newly announced funding have not yet been released.
“As I suspect it is meant to support housing growth, we would likely apply for support for a second water tower, an arterial road, and/or a new recreation centre,” said Michael Touw, chief administrative officer in Perth. He added that it will depend on what the grant applications prioritize and what projects are shovel-ready.
In Carleton Place, the municipality has already received $35 million for its wastewater treatment plant expansion, making it ineligible to reapply to the same stream.
“The town may be eligible to apply for the Water Treatment Plant,” said Diane Smithson, chief administrative officer in Carleton Place. “We currently have an application in for 50 percent funding for our Water Treatment Plant, which we have not heard back on yet.”
At the same time, the federal government announced a $748 million investment this year in Ontario and AMO.
“We are investing in new infrastructure projects that support housing and foster connected communities. Our investment in communities throughout Ontario reinforces our commitment to building bold, building strong, and building together,” said Gregor Robertson, Minister of Housing and Infrastructure.
The funding comes through the Canada Community Building Fund, which municipalities typically use towards infrastructure such as road maintenance.
Municipal staff welcomed the announcements.
“We spend our allocation on road maintenance overlay projects every year. In both 2025 and 2026, it will be $409,933.32,” said Trisa McConkey, treasurer at Carleton Place.
Perth is set to receive just over $211,000, while Smiths Falls has been allocated $606,000.
“We use the fund towards our road reconstruction projects each year,” said Touw.
“In 2025, we’re using Canada Community Building Fund to help cover the $3 million cost of the George Street redevelopment,” said Pankow.
“The permanency of that fund enables local governments to plan and prioritize infrastructure needs for the next decade,” said AMO president Robin Jones, mayor of Westport.
According to AMO, Ontario municipalities invested $65 billion in local services in 2022, and are going to invest between $250 and $290 billion in capital spending over the next decade. With most of their revenue derived from taxation, AMO has been actively lobbying for federal and provincial financial support.
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