Ottawa set to bypass Ford government with money to end encampments

Trudeau Government May Bypass Ontario on Encampment Funding

The Trudeau government is considering bypassing Ontario's provincial government to directly allocate funds to municipalities for addressing encampments, Global News has learned. This move could cut Queen’s Park out of decisions on how the money will be spent.

In mid-September, Canada’s Minister of Housing, Infrastructure, and Communities, Sean Fraser, sent letters to provincial governments offering $250 million to help provide shelter for individuals living in encampments.

Fraser initially sought cost-sharing agreements with the provinces, but said Ontario’s lack of response is forcing the federal government to work directly with municipalities.

“We will no longer wait for them to muster the political will to act as winter gets closer and lives are put at risk,” Fraser said in a statement shared with Global News.

A source within the Ontario government said discussions had been ongoing since Ottawa sent the initial letter on September 18. However, Alberta, New Brunswick, and Saskatchewan also failed to respond and will similarly be bypassed.

Fraser noted that the federal government would target six municipalities, including Toronto, to implement cost-matched responses and plans to approach more cities with direct funding offers.

At a separate announcement in Toronto on Tuesday, city officials revealed efforts to increase temporary shelter capacity ahead of winter by adding 530 spaces through program expansions and reopening respite sites. Exhibition Place, which was used as a shelter last winter, will be reopened. The city currently receives about 200 calls per night from people seeking beds but cannot meet the demand.

Fraser indicated that Ontario’s non-participation could limit the province’s influence on how the funds will be allocated.

“If a province or territory partners with us, they will be able to select the communities that will get funding from us,” Fraser said. “Should they wish to forego a partnership with us, we will rely on the best available data to inform our decisions.”

Other cities such as Calgary, Edmonton, Saint John, Regina, and Saskatoon are also on the list for direct federal funding.

Global News reached out to Ontario’s Ministry of Municipal Affairs and Housing but did not receive a response before publication.

Municipalities Call for Coordinated Action on Encampments

Encampments have become a growing issue across Ontario since the pandemic, with calls from major cities this summer for a unified provincial response. At the annual meeting between municipalities and the province in Ottawa, Ontario’s Big City Mayors group asked for a coordinated strategy to address homelessness, arguing the issue goes beyond funding alone.

“What is happening on our streets across this province is an unprecedented humanitarian crisis,” said Burlington Mayor Marianne Meed Ward, who chairs Ontario’s Big City Mayors.

“There are too many people unhoused, living in encampments or other unsafe conditions, struggling with mental health and addiction issues. This is growing and it impacts every single municipality across our province — large and small, rural and urban.”

According to research from the Association of Municipalities of Ontario, 1,400 encampments were set up across the province last year in both small towns and large cities.

In response, Ontario announced it would ban supervised consumption sites near schools and committed $380 million toward addiction hubs, which will include 375 supportive housing units.

Ongoing Ottawa-Ontario Housing Dispute

The decision to bypass Ontario on encampment funding follows a similar standoff earlier this year over affordable housing funds.

Initially, Fraser told Ontario Housing Minister Paul Calandra that $357 million in federal funding for affordable housing would not be sent to the province but directly to local service managers. The federal government accused Ontario of not meeting its obligations to build thousands of affordable housing units with the money.

Ontario Liberal Leader Bonnie Crombie praised the federal government’s approach, calling it a “creative way to circumvent” the provincial government.

“If the middleman just doesn’t play ball, if the middleman is not willing to cooperate? Of course,” Crombie told Global News.