Ottawa plans $1.7-billion boost in housing transfers to provinces, territories
Bill Curry, Deputy Ottawa Bureau Chief, Ottawa, Published March 26, 2026
Finance Minister François-Philippe Champagne tabled new housing legislation Thursday that proposes providing an additional $1.7-billion in immediate funding to provinces and territories.
Bill C-26, the Improving Housing Supply Act, is a very short bill that simply authorizes a one-time payment of $1.713-billion to increase new housing supply. There are no other provisions in the legislation.
Provinces could spend the money on reducing development fees or levies on new home construction or enhancing existing provincial programs related to housing, the government said in a news release. The legislation doesn’t restrict the way governments improve the housing supply.
There will be a formula for how the money is distributed, but provinces and territories will have significant flexibility as to how they use the transfer, Mr. Champagne said at a news conference.
“We wanted also to make sure that every part of the country could use their own solutions and tools in their toolbox to increase the supply of new homes across the country,” he said. “It’s going to be different in different parts of the country.”
While the legislation requires Parliamentary approval, Mr. Champagne said he’s been in touch with provinces and plans to have the money flowing quickly so that it can contribute to this year’s construction season.
Ontario Premier Doug Ford announced on Wednesday that the province would expand the sales tax rebate on newly built homes to more buyers, including repeat buyers and some investors who plan to rent out their units.
Mr. Ford said at the time that Ontario’s move would be supported by a deal with the federal government that would approximately cover Ottawa’s portion of the foregone tax bill. Thursday’s announcement from Mr. Champagne does not specifically mention the province’s sales tax rebate program.
A spokesperson for Mr. Ford declined a request for comment on the federal announcement Thursday.
Mr. Champagne’s office said the government plans to book the $1.7-billion in the current fiscal year, which ends at the end of the month.
John Fragos, the Finance Minister’s press secretary, said the funding formula will focus on Canada’s most populous cities which have had year-over-year declines in new home sales for a prolonged period of time. He said it will also support cities “with elevated levels of housing affordability concerns.”
The formula will also provide funding for less-populated areas, he said.
Rebecca Bligh, president of the non-profit Federation of Canadian Municipalities, said in a statement that the organization welcomes the federal efforts to increase the housing supply.
“While this will help new buyers access the housing market, there is still much to do to make housing truly affordable for all,” she said, adding that homelessness continues to rise at alarming rates.
www.theglobeandmail.com/politics/article-ottawa-plans-17-billion-boost-in-housing-transfers-to-provinces/
