Mayor Olivia Chow asks federal government for financial help amid ‘senseless trade war’

Toronto Mayor Olivia Chow speaks to reporters on Saturday, March 8, 2025.

Toronto Mayor Olivia Chow has penned a letter to Prime Minister Mark Carney asking for federal investments in housing and two major transit projects amid an affordability crisis that she says has been worsened by a “senseless trade war.”

In her letter to the newly elected prime minister, Chow congratulated Carney for his win before noting the “anxiety” that many Torontonians are experiencing due to the trade tensions with the U.S.

“Workers are worried about their jobs and the rising cost of housing, transportation and food. Businesses, indeed entire economic sectors, are confronting massive uncertainty. We can meet this moment rooted in common values,” Chow wrote.

Chow’s letter comes one day after Carney’s cabinet was sworn in.

The mayor said that Toronto will be a “strong partner” in helping Carney build a stronger economy.

But she, in turn, asked Carney for support in constructing more affordable homes, investing in transit infrastructure, striking a “fair deal for Toronto,” and tackling the rising costs of everyday goods.

“Your Build Canada Homes commitment and other market interventions match the urgency of the moment,” Chow said, pointing to the Liberal government’s new entity that promises to build affordable housing at scale, providing financing to affordable homebuilders.

More on housing and transit

The mayor also said Toronto is working toward providing more affordable housing through the city’s housing accelerator and apartment construction loan funds.

However, Chow said that in order to “continue our strides on housing,” Toronto needs federal investments in housing-enabling infrastructure, such as roads, sewers and parks.

On the topic of transit, the mayor acknowledged the recent $758 million investment from the federal government for new Line 2 subway trains, but noted Toronto’s “rapid growth has outpaced the capacity of our public transit system” and more infrastructure needs to be rapidly built.

“That’s why the city is currently in the design phase of two LRT projects that will connect more communities and unlock more economic growth,” Chow wrote, pointing to the construction of Eglinton East and Waterfront East LRTs.

“The city is prepared to provide its third of the project costs for these lines. We’re asking that the provincial and federal governments join us with a third each.”

In 2023, the projected cost of the Eglinton East LRT was estimated at $4.65 billion while the Waterfront East LRT was projected at $2.6 billion.

A ‘fair deal’ for Toronto, Chow asks

Chow went on to remind the prime minister that the city welcomes new residents every day.

“Every budget year, it’s increasingly difficult to fund the services and build the infrastructure that people expect their city government to deliver. The reason is clear: our revenue tools are outdated, disconnected from economic growth, and unable to meet the financial needs of a growing global city,” Chow wrote.

On top of that, the mayor said that Toronto often takes on an additional load in providing shelter for refugees without guaranteed funding—something she suggested is a federal responsibility.

Chow also asked Carney to seriously consider the city’s request that a small portion of the GST or federal gas tax collected from Torontonians be redirected to the municipality.

The last area Chow asks Carney to assist with are the rising cost of groceries, saying more residents are faced with the hard decision of choosing between a roof over their heads or food on the table.

Too many children go to school hungry, Chow says, and while she backed the federal government’s choice to make the National School Food Program permanent, the mayor asked for their collaboration on making morning meals universal for Toronto students by next school year.

“Prime Minister, we are at a critical moment in our history. Time and time again, Torontonians have shown we are ready to face threats and channel our collective energy to build a more resilient, inclusive and dynamic economy,” Chow wrote.

“Toronto is ready to lead. Let’s get to work.”

Carney and his newly formed cabinet will return to the house on May 26.