York Region facing $4.9 billion financial impact over next decade to deliver growth-enabling infrastructure

Newmarket – York Regional Council received an update on financial impacts to York Region resulting from recent provincial decisions, legislative changes, mandates and directives, totalling almost $5 billion over the next 10 years.

“When York Regional Council approved the 2026 budget, it included a record $14 billion 10-year capital plan to maintain strong, caring, safe communities. However, more than $2 billion in critical investments in bus rapid transit and community housing were not yet included pending senior government funding,” said York Region Chairman and CEO Eric Jolliffe. “After further analysis, this funding gap is expected to more than double over the next decade. York Region is increasingly required to advance large infrastructure projects without the level of senior government investment required to meet growing demands and ensure responsible financial stewardship.”

Over the next 10 years, York Region is expected to feel financial pressures in growth-enabling infrastructure resulting from Provincial growth expectations, legislated responsibilities and specific infrastructure requirements amounting to $3.4 billion. This includes $1.6 billion for bus rapid transit, $1.6 billion for the provincially mandated North York Durham Sewage System expansion and $204 million for new community housing.

Recent provincial changes to the Development Charges Act, 1997, through the More Homes Built Faster Act, 2022 (Bill 23) and the Protect Ontario by Building Faster and Smarter Act, 2025 (Bill 17), expanded development charge exemptions, discounts and deferrals applicable to residential development and are projected to lower York Region’s development charge collections by approximately $1.4 billion over the next 10 years. Updates captured in the Regional Council-approved 2026 Region-wide and Nobleton Area-Specific Wastewater Development Charges Background Studies and Bylaws include rate reductions across all classes of development.

Additionally, York Region continues to face pressures to deliver provincially mandated housing and homelessness services where funding formulas, caps and allocations have not kept pace with inflation, population growth, rising service demand and increasing regulatory requirements.

“York Region is expected to grow to over two million residents by 2051, requiring significant investments in roads, rapid transit, community housing, water and wastewater to meet future community needs,” said Township of King Mayor Steve Pellegrini, Chair of Finance and Administration. “Ensuring predictable senior government funding remains critical to the Region’s long-term fiscal flexibility to maintain service delivery and respond to ongoing growth pressures."

While York Region annually reviews its capital program to ensure infrastructure projects are prioritized based on greatest need and long-term value, the Region continues to advocate for adequate and predictable senior government funding to support provincially directed growth and service delivery. This includes most recently through the Region’s submission to the 2026 Ontario Budget Consultation.

As municipalities across Ontario face increased financial pressures, there will be a stronger focus on phasing projects, optimizing delivery and exploring innovative funding and partnership opportunities to maintain essential services in a sustainable way. Any resulting adjustments will be considered through the 2027 budget process.

The Regional Municipality of York consists of nine local cities and towns and provides a variety of programs and services to more than 1.3 million residents and over 58,000 businesses with 624,000 employees. More information about the Region’s key service areas is available at york.ca/RegionalServices

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Media Contact:

Ava Baccari, Corporate Communications, The Regional Municipality of York
Cell: 289-716-9605
Email: @email