Prime Minister Carney Unveils Major Ottawa Partnership to Build Homes, Strengthen Community Safety, and Boost Canada’s Global Leadership
New Canada–Ottawa housing partnership delivers 3,000 homes as part of Canada’s plan to build housing, strengthen community safety, and expand global leadership.
OTTAWA — Prime Minister Mark Carney announced a sweeping package of new initiatives for the City of Ottawa on Monday, outlining a federal–municipal partnership designed to accelerate housing construction, address the city’s escalating drug crisis, deepen defence-sector collaboration, and reinforce Canada’s international leadership role.
Speaking alongside Ottawa Mayor Mark Sutcliffe, the Prime Minister said the measures reflect Canada’s need to adapt to rapidly shifting global trade and economic conditions. The plan aims to build more homes at scale, protect communities, and expand opportunities for Canadian workers and industries.
Up to 3,000 New Homes Through a $400M Housing Partnership
At the centre of the announcement is a new housing agreement between the federal government’s Build Canada Homes agency and the City of Ottawa — an initiative that will deliver up to 3,000 mixed-income and affordable homes beginning in 2026.
The $400 million joint investment includes:
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2,000 units on federal lands, fast-tracked by the City of Ottawa through reduced or waived development charges, permit fees, and property taxes.
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1,000 additional affordable units financed through Build Canada Homes from the City’s project list.
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A streamlined development process that accelerates construction timelines.
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Requirements under the federal Buy Canadian Policy, ensuring projects prioritise domestically sourced lumber and Canadian-made building materials.
Both governments emphasized that the plan will leverage modern construction methods to deliver homes more efficiently while strengthening local supply chains and creating skilled jobs.
Today, with @_MarkSutcliffe in Ottawa, we announced bold new initiatives to work with the City of Ottawa to build thousands more homes, protect our communities, and elevate Canada’s leadership on the world stage — including with a bid to host the 2028 Francophonie summit. pic.twitter.com/2FZr5ISZxb
— Mark Carney (@MarkJCarney) December 8, 2025
$1.2M Pilot Project to Address Ottawa’s Drug Crisis
A second major commitment is a new federal pilot initiative targeting substance abuse and community safety in Ottawa.
More than $1.2 million will be provided to the City of Ottawa and the Canadian Centre on Substance Use and Addiction (CCSA) to:
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Support city-led programs focused on crime reduction, substance-use deterrence, and life-skills development.
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Develop a coordinated framework bringing together Ottawa Public Health, mental-health providers, and regional partners.
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Establish a scalable model that other provinces and municipalities can adopt.
Officials described the framework as a critical step toward addressing systemic gaps in mental-health and addiction services.
Leveraging Ottawa’s Defence Sector for Economic Growth
Ottawa’s role as a national defence hub was highlighted through a new commitment to identify federal projects that will utilize the city’s 300+ defence companies.
This aligns with Canada’s broader modernization of the Armed Forces — including a major pay raise for members, $9 billion in new defence spending, and participation in the European Union’s SAFE initiative to strengthen continental security.
Canada Launches Bid to Host the 2028 Francophonie Summit
Reaffirming Canada’s bilingual identity and diplomatic leadership, Prime Minister Carney announced that Canada will bid to host the 2028 Sommet de la Francophonie in the National Capital Region.
With La Francophonie representing one-fifth of the global economy, Carney said securing the summit would foster new trade opportunities, attract international investment, and showcase Canada’s French-speaking communities on the world stage.
Leadership Remarks
Prime Minister Mark Carney said the initiatives represent “a nation-building agenda with local partnerships,” adding that they will “build more homes, protect our communities, and catalyse new opportunities for collaboration in defence and technology.”
Ottawa Mayor Mark Sutcliffe called the housing agreement “historic,” noting that it will deliver thousands of affordable homes while supporting substance-use response, economic growth, and international visibility for Canada’s capital.
Why It Matters
The announcement marks one of the most comprehensive federal–municipal collaborations under Canada’s new government, positioning Ottawa as a model for large-scale housing delivery, targeted community safety investments, and economic innovation.
Federal officials said the partnership reflects a strategy of meeting global uncertainty with domestic resilience — protecting communities, strengthening supply chains, and ensuring Canada remains competitive on the international stage.
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