Canada’s Improving Housing Supply Act Receives Royal Assent, Allocating $1.7 Billion to Boost Construction
The Government of Canada announced that Bill C-26 has received Royal Assent, providing $1.7 billion to provinces and territories to remove barriers to residential construction. Ontario plans to use its share to offer temporary relief on the federal portion of the Harmonized Sales Tax for new homes.
On June 19, 2026, the Government of Canada announced that Bill C-26, the Improving Housing Supply Act, had received Royal Assent. The legislation passed the previous day, on June 18, 2026.
The act allocates $1.7 billion to provinces and territories across Canada. These funds are intended to help remove barriers to residential construction, with the goal of boosting housing supply and improving affordability for Canadians.
Provinces and territories can use the funding to support various measures, such as reducing development fees on new homes and enhancing existing provincial programs that encourage housing construction. Additionally, the funds may support efforts to improve internal trade by harmonizing regulations and increasing productivity in the home construction sector.
Ontario has outlined specific plans for its allocation. The province intends to introduce a temporary program that provides relief equal to the 5% federal portion of the Harmonized Sales Tax (HST) on eligible new home purchases. This move builds on Ontario’s earlier decision to provide relief for its own 8% provincial portion of the HST through temporary enhancements to existing rebates.
The initiative aims to lower the cost of new homes, strengthen partnerships between federal, provincial, territorial, and municipal governments, and support construction workers by keeping projects moving forward.