New Deal Between Ontario and Toronto

The Government of Ontario and the City of Toronto have reached terms on a new fiscal framework that will contribute to the City’s goals of long-term financial sustainability.??

Vital services such as housing and transit were central to the working group discussions, which comprised public service officials from relevant provincial ministries and municipal departments. This group was tasked with delivering an agreement by the end of November to address the city's unique operating and capital deficits.

The New Deal supports the delivery of intergovernmental priorities, including public transit and city-enabling infrastructure. Following weeks of deliberations, Ontario has agreed to provide operating support over three years and significant capital relief over the next decade for the following transportation initiatives:

• $300 million in one-time funding for subways and transit safety, recovery and sustainability.?
• Up to $758 million in funding for 55 new subway trains for the TTC’s Line 2, conditional on matching federal support.?
• Annual operating funding over 3 years, beginning in 2024-25, for a total of $330 million for new subway-integrated provincial transit projects – the Eglinton Crosstown LRT and the Finch West LRT.???
• Uploading both the Gardiner Expressway and the Don Valley Parkway to the Province, subject to third-party due diligence, which could provide up to $6.5 billion in capital relief for Toronto, plus related operating and maintenance cost savings.?

Commitments of the City of Toronto to the Province include:??

• Advancing housing, transit, and infrastructure opportunities to support economic development and growth.???
• Advancing the delivery of the Priority Transit Projects and support key transportation objectives.???

• Advancing Transit-Oriented Communities.?
• Community Safety and Economic Recovery.

To move forward on this New Deal, the government will introduce the New Deal for Toronto Act, which, if passed, will provide the necessary authorities to make this deal a reality.??

While Ontario and Toronto have taken meaningful action through the New Deal to advance key provincial priorities, federal involvement is vital for the City to secure long-term financial sustainability. The City and the Province will continue in their efforts to engage the federal government as a full partner, aiming to secure funding for essential areas like transit, which is integral to our shared social and economic prosperity. ??

Update: Bill 154, New Deal for Toronto Act, 2023, received Royal Assent on December 6, 2023.