Ontario finance minister says federal budget ‘fell short’ on infrastructure money, including for Hwy. 401 tunnel project   

Ontario Finance Minister Peter Bethlenfalvy speaks with reporters at Queen's Park November 5, 2025.

Ontario Finance Minister Peter Bethlenfalvy says the federal budget tabled this week fell short when it comes to the support Ontario was hoping to see for infrastructure.

“It lacks some ambition” Bethlenfalvy said, speaking with reporters at Queen’s Park Wednesday, a day after the federal budget and a day before he delivers a fall economic update for Ontario.

“My first take is that it’s less transformational. It’s more tinkering,” he said.

In particular, he said the federal government is providing less support for infrastructure and some key projects than the province was hoping to see.

“On the nation building side, we did not see a commitment to some of our priorities, which is large-scale nuclear, the Ring of Fire, the 401 tunnelling,” Bethlenfalvy said. “These things are really important to creating jobs, getting shovels in the ground, moving our province not just for the next 12 months, but for the next 20 to 50 years.”

Premier Doug Ford has proposed the idea of a tunnel underneath Highway 401, spanning a large portion of the Greater Toronto Area, in order to relieve gridlock. He has said in the past he believed Prime Minister Mark Carney would include the idea on a list of nation-building projects worthy of federal funding. However Carney gave no clear endorsement of the idea when he and Ford held a joint news conference last month.

Asked about the viability of a project as enormous as the proposed 401 tunnel Wednesday, Bethlenfalvy said the province has to be creative to both create jobs and fight gridlock.

“I think it’s imperative with that we think outside the box in terms of how we move people in this province,” he said.

He said he was also hoping to see more support for Ontario’s auto sector, which has been hard-hit by U.S. President Donald Trump’s tariffs.

“If you’re out of a job or being challenged in the auto sector, there isn’t much there,” Bethlenfalvy said. “Specifically they mentioned the $5 billion Strategic Innovation Fund. Well, our fund is $5 billion, and we’re the epicenter of the tariff impact, so we’d like to see more support.”

Bethlenfalvy said he’s had a chance to speak with Federal Finance Minister Francois Philippe Champagne since the budget was tabled and he plans to speak with him again Thursday.

On a positive note, he said he’s pleased to see the Canada Health Transfer levels being maintained, as well as an HST break for first-time buyers of new homes and accelerated depreciation for businesses – an accounting practice that reduces early taxes on some business assets.

Champagne’s office did not immediately respond to a request for comment.

Bethlenfalvy is expected to deliver a fall economic update, sometimes known as a mini budget, for Ontario Thursday afternoon. The update is expected to lay out Ontario’s progress since the Ford government tabled a $232.5 billion budget aimed at shielding Ontario from tariffs in May.