Federal Government Steps in to Address Homelessness with Direct Municipal Agreements
- Naomi Dela Cruz
- Canada
- January 22, 2025

In a decisive move to combat homelessness during a harsh winter season, the Government of Canada has bypassed stalled negotiations with Ontario and Saskatchewan to directly fund municipalities in these provinces. This initiative aims to provide critical support to some of the country’s most vulnerable residents, including those living in encampments.
On January 22, 2025, the federal government announced agreements with nine municipalities in Ontario—Durham, Toronto, Peel, York, Hamilton, Niagara, Waterloo, Ottawa, and Sudbury—and two in Saskatchewan—Regina and Saskatoon. Combined, these municipalities will receive over $91.5 million in federal funding, which will be matched by the cities themselves. This comes in addition to an earlier agreement with the City of London, announced in December 2024.
The funding forms part of a broader strategy to implement Community Encampment Response Plans (CERPs), tailored to the unique challenges of each community. These plans include increasing shelter capacity, developing transitional housing, and offering case management services to help individuals secure permanent housing. By focusing on immediate and localized solutions, the initiative seeks to ensure that those experiencing homelessness, particularly those in encampments, have access to dignified and stable living conditions.
This effort is part of the $250 million allocated in the 2024 federal budget under the Unsheltered Homelessness and Encampments Initiative. The funding complements the federal government’s larger homelessness strategy, Reaching Home: Canada’s Homelessness Strategy, which has provided $1.6 billion to Ontario and $124 million to Saskatchewan. Since 2015, federal initiatives have helped nearly two million Canadians find housing.
Nathaniel Erskine-Smith, Canada’s Minister of Housing, Infrastructure, and Communities, emphasized the importance of this targeted approach:
“While these agreements mark a significant step forward, we recognize the urgency of accelerating the development of affordable, deeply affordable, and supportive housing. Every Canadian deserves a place to call home.”
The move highlights the government’s willingness to work directly with municipalities when broader agreements with provincial authorities falter. The initiative also sets a precedent for federal-provincial-municipal collaboration, albeit through alternative channels, as the country grapples with the escalating homelessness crisis.
As more agreements are anticipated in the coming weeks, the federal government’s actions underline the importance of addressing homelessness head-on, ensuring that the dignity and well-being of those most in need remain a national priority.