Prime minister outlines plan to help cities by investing in housing, infrastructure, and faster project approvals
Prime Minister Mark Carney has pledged to help Canadian municipalities weather the economic fallout of US trade policies by accelerating infrastructure development and boosting housing supply through a slate of nation-building investments.
Speaking to municipal leaders at the annual Federation of Canadian Municipalities (FCM) meeting, Carney said the federal government would shift to a delivery-focused approach, fast-tracking approvals for critical projects that aim to enhance domestic productivity and economic resilience.
“We’ll move from delay to delivery,” Carney said. “Ensuring that the Canadian government becomes a catalyst for, not an impediment to, nation-building projects that will supercharge growth in communities large and small.”
A major focus of Carney’s remarks was the housing crisis, which has become a top concern among municipal officials. Carney reaffirmed the Liberal government’s commitment to double the rate of home construction to 500,000 units annually over the next decade.
To meet that goal, the government is establishing a national housing agency, slashing development fees by 50%, and committing $25 billion to support the financing of new affordable housing.
Toronto mayor Olivia Chow welcomed the announcement.
“I’ve waited for several decades to finally see a government that is coming back to building housing,” said Chow, who met with Carney ahead of his speech. “We are extremely pleased that is in the Throne Speech and that is what the prime minister will do.”
Read next: Carney prepares to tackle housing crisis amid huge challenges
Carney also committed to supporting municipalities through federal investments in critical infrastructure such as water systems, power lines, and wastewater facilities.
Some municipal leaders urged the federal government to take additional action to address tariff-related instability. Windsor Mayor Drew Dilkens, whose city is home to Canada’s auto manufacturing hub, expressed concern over the lack of trade certainty amid US tariff threats.
“People just want to know what the rules of engagement are,” Dilkens said. “Businesses want to know that too, so they can plan for their futures.”
Dilkens noted that joblessness in Windsor has climbed to 10.7%, with the auto sector’s 20,000 workers facing ongoing disruptions, including temporary shutdowns at the Stellantis assembly plant since the start of Trump’s trade war in January.
Meanwhile, Ontario Premier Doug Ford submitted a priority list ahead of the upcoming First Ministers Meeting, calling on Ottawa to greenlight projects like the development of the Ring of Fire—a resource-rich region in northeastern Ontario—and to invest in new pipelines to diversify Canada’s energy exports beyond the US.
“We can’t be reliant on the US any longer. We have to build pipelines west, north and east,” Ford said.
While memorandums of understanding on funding have been signed, concerns remain about the delay in actual transfers to municipalities.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
