Fact Check: The federal government will not claw back funding from Toronto for zoning changes.

Fact Check: "The federal government will not claw back funding from Toronto for zoning changes."

What We Know

The City of Toronto is currently at risk of losing approximately $30 million in federal housing funding due to a recent decision by city council. On June 25, 2025, the council voted against allowing sixplexes to be built citywide, which was a key condition of its agreement with the federal government under the Housing Accelerator Fund. This fund is designed to incentivize cities to increase housing supply by easing zoning restrictions and reducing bureaucratic hurdles (CBC News, iPolitics).

The previous federal housing minister, Nate Erskine-Smith, had warned that any deviation from a citywide policy allowing sixplexes would result in a 25% reduction in funding, translating to nearly $30 million of the total $118 million pledged annually to Toronto (CBC News, The Globe and Mail). However, the new housing minister, Gregor Robertson, has not publicly confirmed whether he will uphold this stance (iPolitics, The Globe and Mail).

Mayor Olivia Chow expressed confidence that the funding would not be clawed back, citing her belief that the new housing minister understands the complexities of municipal politics and the challenges in implementing such zoning changes (The Globe and Mail).

Analysis

The claim that "the federal government will not claw back funding from Toronto for zoning changes" is partially true. While Mayor Chow and some sources suggest that the federal government may not follow through with funding cuts, the risk remains significant given the previous warnings from the federal government regarding the conditions tied to the funding.

Source Reliability: The sources used in this analysis include reputable news outlets such as CBC News and The Globe and Mail, which are known for their journalistic integrity. However, the interpretation of the situation varies among sources. For instance, while Chow expresses confidence, other reports indicate that there is still a risk of losing funding (iPolitics, The Globe and Mail).
Contradicting Views: Critics argue that the federal government should enforce the conditions of the funding agreement to ensure compliance from municipalities (iPolitics). This perspective highlights a potential inconsistency in the federal government's approach, suggesting that the mayor's confidence may not be well-founded.
Political Context: The political dynamics surrounding housing policies in Toronto are complex, with pressures from both municipal and federal levels. The mayor's optimism may reflect a strategic stance to encourage cooperation rather than confrontation with the federal government (The Globe and Mail).

Conclusion

The claim that "the federal government will not claw back funding from Toronto for zoning changes" is Partially True. While there is a basis for optimism expressed by Mayor Chow and some indications that the new housing minister may take a more lenient approach, the risk of losing significant federal funding remains due to the city council's decision against citywide sixplex zoning. The situation is fluid, and the final outcome will depend on ongoing negotiations and political considerations.

Fact Check: The federal government will not claw back funding from Toronto for zoning changes.