On November 5, the federal government tabled Budget 2026, Masters of Our Destiny. The budget builds on the $51 billion Build Communities Strong Fund and includes several measures that affect municipal capital planning, operating budgets, and approvals. Here’s what Good Roads members need to know.

New funding for recreation facilities and ice rinks

The budget provides $1.5 billion over nine years through the Build Communities Strong Fund to build, expand, retrofit, and rehabilitate community recreation facilities. The money is split evenly: $750 million for ice rinks and $750 million for other recreation facilities. About $680 million will flow in the first four years.

No increase to the Community Stream

The Build Communities Strong Fund Community Stream, formerly the Canada Community-Building Fund, gets no top-up. Payments stay indexed at 2% a year, applied in $100 million increments, and rise from $2.5 billion in 2026-27 to $2.8 billion in 2030-31.

Infrastructure to unlock housing on federal lands

The budget provides $1.5 billion over four years starting in 2027-28, plus $387.4 million in future years, to service underused federal lands for housing. Eligible work includes water, wastewater, roads, and other enabling infrastructure. Municipalities with federal land in or next to their boundaries may see more development activity.

Support for municipal e-permitting

The budget provides $100 million over three years, starting in 2027-28, for a partnership with the Federation of Canadian Municipalities. It will support municipal e-permitting and AI-enabled review and approval processes.

Electric vehicle charging

The Zero-Emission Vehicle Infrastructure Program is renewed with $587 million over five years, starting in 2027-28. The renewal supports more than 55,000 additional chargers.

Fuel excise tax returns in 2027

The suspension of the federal fuel excise tax on gasoline, diesel, and aviation fuel is extended to the end of January 2027. Rates go to 50% of their usual level in February and March and return in full on April 1, 2027. Members should account for this in 2027 fleet fuel budgets. The change doesn’t affect Community Stream allocations.

Homelessness and municipal operating costs

The budget commits $11.2 billion over four years, starting in 2027-28, plus $17.8 billion in future years, toward ending homelessness within 10 years. Federal funding will cover capital costs, and provinces and territories are expected to fund ongoing operations and support services. The budget also says municipalities will have a role in operating these facilities. In Ontario, housing service managers are municipal, so Good Roads will be watching closely to make sure operating costs aren’t shifted to municipalities. Reaching Home is renewed for 10 years, but continued funding depends on rigorous reporting, including real-time data.

Legislative and institutional changes

• Building Canada Strong Act (Bill C-39): The proposed legislation would create a Transportation Projects Office to coordinate federal approvals for priority transportation projects. It would also formally designate strategic trade corridors and set Corridors of National Interest through regional impact assessments.
• Canada Infrastructure Bank: Responsibility moves to the Minister of Finance. The Bank’s mandate narrows to loans and loan guarantees for major infrastructure investments, and it takes over the Indigenous Loan Guarantee Program. Good Roads will be watching whether this changes access for mid-sized municipal projects.
• Building codes: The National Model Codes will be updated more often. The budget also provides $67.7 million over four years, starting in 2027-28, and $101.2 million in future years to modernize housing data and set common standards for modern construction methods.

First Nations housing and infrastructure

For Good Roads’ First Nations members, the budget commits more than $32 billion over 10 years to First Nations housing and infrastructure, with most funding starting in 2027-28. Highlights include:

• A new First Nations On-Reserve Infrastructure Program worth $18.5 billion over 10 years. It will fund construction and maintenance of roads, bridges, schools, health facilities, and other assets, and extend water and wastewater investments. It is meant to give communities more flexibility to plan investments over the long term, rather than working within annual funding allocations.
• $11 billion over 10 years to maintain, build, and renovate on-reserve housing, plus $1.7 billion over five years to speed up shovel-ready projects.
• $657.5 million over 10 years for three financing pilots:
  • a $500 million Monetization Pilot that secures upfront infrastructure financing through the First Nations Finance Authority
  • a $7.5 million Surety-Bonding Pilot to help First Nations contractors bid on large construction contracts
  • $150 million for the Yänonhchia’ Revolving Housing Finance Fund

Long-term, predictable funding that covers maintenance as well as construction addresses a longstanding concern raised by First Nations communities. The new program covers only on-reserve assets, though. It isn’t yet clear how it will apply to road access for remote communities that rely on winter roads.

What’s next

Good Roads will continue to analyze the budget and keep members informed as details become available. The full budget is available here.

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Ahead of the October 26 municipal election, Good Roads has released a new guide on who we are, what we stand for, the support we offer, and why the 2027 Good Roads Conference is the place to begin your term.

On October 26, 2026, Ontarians will elect a new term of municipal leadership. Whether returning to council or taking a seat for the first time, every elected official inherits responsibility for the roads, bridges, and infrastructure their communities depend on.

To help, Good Roads has released A Partner for Municipalities, a short guide for councils and candidates across the province. It sets out the public policy priorities we are advancing at Queen’s Park on behalf of our members, the services and support available to every member municipality, and why the 2027 Good Roads Conference, the first gathering of the new term, is the place for your council to start.

For more than 130 years, Good Roads has represented the transportation and infrastructure interests of Ontario’s municipalities. Today we connect more than 450 municipal and First Nation members to one another, to other levels of government, to academia, and to the private sector.

We encourage members to share this guide with their councils, incoming officials, and the candidates in their communities.

Download the guide here.

New Municipal Project Assessment Process to Replace the Municipal Class EA on January 1, 2027

The Ministry of Environment, Conservation & Parks (MECP) has finalized a new environmental assessment framework for municipal infrastructure. Effective January 1, 2027, the Municipal Class Environmental Assessment (MCEA) will be replaced by the Municipal Project Assessment Process (MPAP) for more complex municipal projects, with a separate Archaeological Assessment Process (AAP) applying to certain other projects. Until the new regulation comes into force, the existing MCEA process continues to apply.

The change narrows what triggers a full environmental assessment. The MPAP focuses EA Act requirements on more complex water, sewage, and shoreline or in-water works led by municipalities. Examples include new water treatment plants or expansions beyond rated capacity, new sewage treatment plants processing over 50,000 litres per day, sewage plant expansions of 25 percent or more, and new dams, breakwaters, groynes, or seawalls. For designated projects, public review and consultation can be completed in as little as five months.

Equally important is what moves out of scope. Under the new framework, all municipal roads, new parking lots in any location, bridge reconstructions with or without cultural heritage value, and all water crossings would no longer carry EA Act requirements. Many projects currently captured under Schedule B, along with smaller sewage plant expansions under Schedule C, are also removed.

Rather than exempting all of those lower-impact projects outright, the regulation introduces the Archaeological Assessment Process for certain project types, including certain road and road-related projects. The AAP requires proponents to obtain a list of potentially interested Indigenous communities, determine whether a project area has archaeological potential, retain a licensed archaeologist where warranted, and circulate draft and final summary reports with defined review periods before proceeding. The intent is to identify potential impacts to archaeological resources while maintaining opportunities for input from Indigenous communities.

The ministry has indicated it will spend the coming months developing guidance and working with municipalities and the broader development sector to support implementation and a smooth transition ahead of the January 1, 2027 date. It has also signalled that it will review the remaining Class EA processes and consult on any further changes before making them.

Good Roads is reviewing the new framework and its implications for member municipalities, with particular attention to the treatment of roads and bridges and the new archaeological assessment requirements. For more information please visit the Environmental Registry of Ontario. View the regulation here.

Good Roads welcomes the letter sent by Minister of Transportation Prabmeet Sarkaria and Minister of Northern Economic Development and Growth George Pirie, calling on the federal government to accelerate the widening of Highways 11 and 17 and eliminate duplicative federal review processes that delay construction.

Good Roads has long advocated for urgent investment in these corridors. Earlier this year, we began making the case that Highways 11 and 17 should be treated as dual-use national security infrastructure, not simply as regional transportation priorities. Together, these highways form the only continuous east–west surface transportation corridor entirely within Canada. A single infrastructure failure on this corridor has the potential to divide the country, sever supply chains, and compromise military mobility from coast to coast. No other G7 nation faces this vulnerability.

The provincial government’s letter to Minister of Transport Steven MacKinnon and Minister of National Defence David McGuinty reflects exactly the kind of leadership Good Roads has been urging. Federal investment in this corridor is not only an economic imperative, but also a national security one. Prime Minister Mark Carney’s commitment to invest 1.5% of GDP in dual-use infrastructure presents a clear and credible funding pathway for Highways 11 and 17, and we encourage the federal government to pursue it.

We urge Minister MacKinnon and the federal government to respond swiftly with concrete investment commitments and a firm pledge to eliminate the regulatory duplication that stands in the way of timely construction.

Good Roads looks forward to working with the Government of Ontario, the Government of Canada, and our municipal, Indigenous, and industry partners to advance this critical corridor as a national priority.

 

The Province of Ontario has released its final Buy Ontario procurement directives, bringing new requirements for municipal purchasing of light-duty fleet vehicles and capital infrastructure goods and services into effect. Good Roads welcomes the Province’s commitment to strengthening Ontario’s domestic supply chains and supports the broader objectives of the Buy Ontario Act. This update summarizes the key changes and highlights areas where Good Roads believes additional guidance would support municipal implementation.

Background

In February 2026, Good Roads submitted detailed feedback to the Ministry of Public and Business Service Delivery and Procurement (MPBSDP) in response to a provincial consultation on new procurement policies to be established under the Buy Ontario Act (Public Sector Procurement), 2025. The consultation proposed requirements for municipal purchases of light-duty fleet vehicles and goods and services in capital infrastructure projects.

Good Roads’ submission expressed support for the Province’s economic objectives while raising nine specific recommendations to ensure the policies would be workable for Ontario’s diverse municipal sector.

In early April, the Province released the Municipal Buy Ontario Procurement Directive alongside two operational guides: one covering fleet vehicles and one covering capital infrastructure. These documents establish the policy framework municipalities must now follow. The guides can be accessed on the Supply Ontario website.

What’s Changing for Municipalities

The new directives introduce requirements across two procurement areas. The effective dates vary by entity type.

Fleet Vehicle Procurement

Effective April 13, 2026 for municipalities (June 1, 2026 for local boards and municipal services corporations)

Municipalities must now follow a prioritized sequence when purchasing or leasing new light-duty passenger fleet vehicles. The steps are:

Step 1: Made-in-Ontario Vehicles (MIO): Vehicles manufactured in Ontario, identified by the number “2” as the first digit of the Vehicle Identification Number (VIN). Examples currently include Chrysler Caravans, Pacificas, certain Chevrolet Silverado Crew Cabs, Honda CR-Vs, and Toyota RAV4 Hybrids.

Step 2: Ontario Vehicle Producers (OVP): If a Made-in-Ontario vehicle is unavailable or not operationally feasible, municipalities must next consider vehicles from OEMs with at least 1,500 annualized jobs in Ontario. Current examples include Ford, GM, Honda, Stellantis, Toyota, and Volkswagen.

Step 3: Alternative approaches: Only if neither of the above can meet operational needs may municipalities consider other options, with documented rationale and appropriate internal approval.

The policy applies to all new competitive and non-competitive procurements regardless of value, including purchases and leases. It does not apply to specialty vehicles (ambulances, school buses, police cruisers), vehicles over 4,500 kg GVWR, short-term leases up to 12 months, or used vehicles.

Capital Infrastructure Procurement

Effective May 15, 2026 for municipalities (June 1, 2026 for local boards and municipal services corporations)

Municipalities must now require vendors to submit a Domestic Supply Chain Plan for all new capital infrastructure procurements. This applies to construction projects, transit fleet vehicles (buses, rail), and fixtures and equipment that are part of a construction contract — at any dollar value.

The plan requires vendors to identify the origin (Ontario, Canadian, or other) and dollar value of each major good and service. Major goods are defined broadly and include structural materials (concrete, steel, lumber), building envelope components, HVAC systems, elevators, generators, and transit fleet vehicles.

Municipalities must apply one of two approaches to evaluate these plans: an evaluated approach (where the plan contributes to bid scoring through a 10% evaluation advantage to the highest Ontario content bidder) or a commitment-based approach (where vendors must commit to a minimum percentage of Ontario or Canadian content as a mandatory eligibility requirement).

A value-for-money exclusion is available in limited circumstances where a detailed market assessment demonstrates that applying the requirements would increase procurement costs by 25% or more. This exclusion requires appropriate internal approval and documentation.

The policy does not apply to medical equipment, information technology, furniture and equipment acquired solely for ongoing operational use after a facility is complete, or routine maintenance and repair (unless it involves repairing the physical structure).

Ongoing Concerns

While we are encouraged by the steps the Province has taken, several important gaps remain. Good Roads will continue to advocate on behalf of our members on the following issues and looks forward to further engagement with the Ministry.

Fleet Vehicle Policy

• Eligibility lists are illustrative, not official: The vehicle examples in the fleet guide are explicitly noted as non-exhaustive and may change as manufacturing evolves. There is no mechanism for regular updates or a definitive official list. Municipalities searching for certainty — particularly around pickup truck availability, which is essential for public works operations — are directed to rely primarily on vendor attestations. Good Roads continues to recommend that the Province publish and maintain a comprehensive, regularly updated eligibility list.
• Standardized criteria for “operational infeasibility” are absent: While the guide provides a definition, municipalities still apply it subjectively on a case-by-case basis. Without common criteria, application will vary across the province and municipalities may face inconsistent audit outcomes. Good Roads recommends the Province develop practical examples and documentation guidance.
• Supply chain capacity and delivery timelines are unaddressed: Ontario municipalities are still managing residual fleet lifecycle challenges from pandemic-era supply disruptions. Concentrating significant new public sector vehicle demand within a constrained pool of eligible manufacturers carries real risk of supply pressure and cost escalation. Good Roads had recommended proactive provincial engagement with OEMs, supply monitoring, and collective purchasing mechanisms.

Capital Infrastructure Policy

• No value-based thresholds for Domestic Supply Chain Plans: The requirement to prepare and evaluate Domestic Supply Chain Plans applies to all capital infrastructure procurements at any dollar value. Smaller municipalities with limited procurement staff will face a proportionally greater administrative burden. Good Roads had recommended scaling the depth of requirements to the size and complexity of the procurement.
• Trade and funding agreement interactions remain unclear: The directive acknowledges the existence of federal funding conflicts but does not provide the formal legal interpretation guidance Good Roads recommended. Municipalities receiving federal funding through programs may face unresolved tension between provincial and federal procurement conditions. Good Roads recommends the Province provide formal guidance and confirm whether compliance with the directive constitutes a safe harbour against trade agreement challenges.
• Compliance verification remains a municipal responsibility: The directive permits municipalities to rely on vendor attestations as evidence of domestic content, which provides some protection. However, it does not establish a provincial audit or oversight framework. Good Roads had recommended a risk-based, Province-led model to ensure consistency and protect municipalities from disproportionate audit risk if vendor attestations prove inaccurate.
• No monitoring framework for cost or competition impacts: Good Roads is concerned that requiring all vendors to prepare Domestic Supply Chain Plans for every capital procurement may increase administrative costs — which will ultimately be reflected in contract prices — and may discourage participation by smaller regional contractors. No mechanism for monitoring these impacts or triggering policy adjustments has been established.
• Reporting obligations still flow to multiple provincial entities: While consolidated in one section, municipalities may still receive data requests from Supply Ontario, MPBSDP, MMAH, and Treasury Board Secretariat. Good Roads continues to recommend a single-contact-point model and standardized reporting templates aligned with existing capital project reporting structures.

Next Steps

Municipalities should review the Municipal Buy Ontario Procurement Directive, the Capital Infrastructure Guide, and the Fleet Vehicle Guide to understand how these requirements apply to their procurement activities. The Ministry will be holding training sessions on the directives in early May. To read the guides and register for the training, please visit the Supply Ontario website.

Good Roads will continue to engage with the Province on the outstanding concerns noted above and will provide further updates as additional guidance is issued.

The Government of Ontario released its 2026 Budget, A Plan to Protect Ontario, on March 26. Good Roads has reviewed the budget documents and identified the key provisions most relevant to our members in municipal transportation and infrastructure. Below is a summary of what was announced.

New Infrastructure Investments

The budget includes several funding commitments with implications for Ontario municipalities:

• Northern Ontario Resource Development Support Fund: The province will provide $15 million in annual funding to support investments in core assets, including roads and bridges, in Northern Ontario communities. Good Roads welcomes this continued commitment to northern infrastructure.
• Ontario Transit Investment Fund: The budget includes a $15 million top-up over three years to this fund, providing support for transit in rural and northern communities. Good Roads is pleased with this investment and calls for this fund to be made permanent.
• Community Sport and Recreation Infrastructure Fund: A $300 million top-up over six years has been announced to repair, upgrade, or build new sports and recreation facilities. While not a roads and bridges program, many municipalities will find this funding relevant to their broader infrastructure priorities.

Other Provisions of Note

• Buy Ontario for Fleet and Capital Projects: The province confirmed that its Buy Ontario provisions related to light duty fleet vehicles and capital projects will take effect this spring. Members involved in fleet procurement or capital tendering should ensure their processes are aligned with these new requirements as implementation approaches.
• Northern Rideshare Pilot: The province is proposing a one-year pilot rideshare framework along the Northlander Passenger Train corridor, between Gravenhurst and Cochrane. The pilot would establish minimum requirements for rideshare operators, drivers, and vehicles serving communities along the corridor, as part of a broader effort to explore standardized rideshare guidelines across Ontario. Good Roads will monitor this initiative and its implications for rural and northern transportation planning.
• Pothole Prevention and Repair Program: The province has not renewed the $10 million municipal Pothole Prevention and Repair Program, which previously supported communities with populations under 10,000. Good Roads will continue to work with the province to support the road maintenance needs of smaller municipalities.

Stay Tuned

Good Roads will continue to analyze the 2026 Budget and report back to members as further details become available. If you have questions about how these provisions may affect your municipality, please contact us at info@goodroads.ca.

Last November, the Government of Ontario created the Road Safety Initiatives Fund (RSIF), a $210 million program aimed at municipalities that previously had automated speed enforcement cameras to implement physical traffic-calming measures in school zones and community safety zones.

The first phase of the program provided $42 million in immediate funding to municipalities that previously operated speed cameras. Starting on Thursday, February 19^th, 2026, eligible municipalities can now apply for the remaining $168 million that has been made available through the fund.

Before the passage of Bill 56, Building a More Competitive Economy Act, 2025, approximately 40 municipalities operated more than 700 automated speed cameras across Ontario. These municipalities have already received first-phase funding and may now submit proposals outlining the road safety improvements they plan to construct in the next phase.

Good Roads is supportive of direct investments that go towards modernizing road design and installing safety infrastructure that slows drivers down. Practical traffic calming measures such as roundabouts, raised crosswalks, and speed bumps make it much more difficult to speed and have a proven impact on driver behaviour.