Statement from the Chair:
“OBCM is encouraged to see the federal government’s commitment to housing, infrastructure, support for Canadian industry, and public safety, all of which OBCM has been advocating for. However, we remain deeply concerned that this budget does not allocate sufficient funding to address the escalating crises of homelessness, mental health, and addictions. These challenges continue to grow in our municipalities and demand urgent, sustained investment from both levels of government.”
– Mayor Meed Ward, Chair, OBCM
Addressing Key Priorities for Ontario’s Largest Municipalities
Housing
The budget commits $25 billion over five years to make housing more attainable for Canadians. Measures include launching Build Canada Homes, a new federal agency designed to accelerate housing construction through public-private partnerships. OBCM looks forward to learning more about how this program will work with provinces and municipalities to deliver more homes.
Additionally announced was the elimination of the GST for first-time homebuyers on purchases under $1 million. OBCM passed a motion calling on both federal and provincial governments to introduce a three-year tax exemption for all homebuyers on the first $1.5 million of their purchase, however, we feel this is an excellent initial step.
Infrastructure
The budget allocates $115 billion over five years for infrastructure, including $54 billion for core public infrastructure (such as water, wastewater, and transit) and $51 billion for the Build Communities Strong Fund to expand local and regional infrastructure.
To access these funds, provinces and territories must agree to cost match federal funding and to substantially reduce development charges and not levy other taxes that hinder the housing supply. OBCM, along with AMO and other provincial organizations in Ontario look forward to working with the federal and provincial governments to discuss updating the development charge system in our province. OBCM will continue to advocate for a long term predictable funding model for Ontario municipalities to replace potential revenue losses from development charge reductions.
Municipalities own 57% of Canada’s public infrastructure, compared to 41% by provinces and only 2% by the federal government. Programs such as the Canada Community Building Fund, Canada Housing Infrastructure Fund, Housing Accelerator Fund, and Canada Public Transit Fund have been critical to local development, and OBCM welcomes the continued commitment to these priorities.
According to the Association of Municipalities of Ontario (AMO), Ontario municipalities are expected to spend between $250 and $290 billion on infrastructure over the next decade. These investments strengthen the economy and create jobs. OBCM has urged the federal government to prioritize nation-building projects focused on clean energy delivery, transportation, and housing as part of the Building Canada Act.
We are pleased to see a commitment to fast-tracking such projects in partnership with provinces, territories, Indigenous Peoples, and private investors. OBCM looks forward to collaborating across all levels of government to deliver projects that meet community needs, create jobs, and stimulate local economies.
Buy Canadian Policy
OBCM welcomes the introduction of a Buy Canadian Policy, which will prioritize Canadian suppliers for public spending, strengthen supply chains, and support homegrown innovation.
Earlier this year, OBCM passed a motion urging the federal government to work with provinces to remove barriers that prevent municipalities from preferring Canadian companies for capital projects and supplies. We also continue to call on both orders of government to reduce interprovincial trade barriers in response to U.S. tariffs and to further support Canadian businesses.
Public Safety
Bail reform has long been a key priority for OBCM to help keep our streets safe for residents and businesses. We are pleased that the Bail and Sentencing Reform Act has been included in this budget. OBCM has called for stronger surety and supervision requirements, more effective consequences for bail breaches, and investments in staffing and technology to support the justice system.
We also welcome commitments to strengthen border security and expand RCMP capacity. However, we urge the federal government to extend similar support to paramedics and first responders, who face increasing threats of violence and harassment. OBCM recently passed a motion supporting amendments to the Criminal Code to:
- Explicitly include paramedics and first responders under Section 423.2 protections; and
- Increase penalties for aggravated assault against paramedics, firefighters, and other first responders to match those for peace officers.
Homelessness, Mental Health, and Addictions
The new Build Canada Homes program will help tackle homelessness by providing $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness in partnership with provinces, territories, municipalities, and Indigenous communities.
It will also provide investments in building deeply affordable community and co-op housing for low-income households, while working with private and non-profit builders to increase the supply of affordable homes for the Canadian middle class.
Although we are thankful for this investment, it is not enough. AMO reported municipalities covered 51.5% of the $4.1 billion spent on housing and homelessness programs in Ontario while supporting various services, including homelessness prevention, emergency shelters, transitional housing, supportive housing, and affordable housing.
Municipalities cannot continue to fund these programs and services on the property tax base that was not designed to do so. We need the provincial and federal governments to step up and take action.
In 2024, OBCM launched our SolvetheCrisis.ca campaign looking to provincial and federal governments to address the growing crisis in our municipalities by funding the programs and services we need community by community.
As we enter the winter months, we urge the federal government to commit funding to support municipalities and provinces in delivering winter homelessness programs that provide vulnerable residents with the services and shelter they need to stay safe in cold weather.
About Ontario’s Big City Mayors
Ontario’s Big City Mayors (OBCM) is a non-partisan organization that includes mayors of 29 single and lower-tier cities with a population of 100,000 or more, who collectively represent nearly 70 percent of Ontario’s population and almost 30 percent of Canada’s population. OBCM advocates for issues and policies important to Ontario’s largest cities.
Media Contacts
Mayor Marianne Meed Ward, Chair Michelle Baker, Executive Director
chair@obcm.ca michelle@obcm.ca
905-335-7777 647-308-6602