Mark Carney Government Proposes New Bill to Reform Major Project Approvals

If you’ve ever driven along Toronto’s Gardiner Expressway, you’ve seen the city’s ambition—and its delays. The Lower Don Trail, a key pedestrian and cycling route, is now more than a year behind schedule, while 17 of 18 major Toronto Water projects audited over the past five years missed their deadlines. Meanwhile, the Waterfront East LRT, a long-awaited transit project, finally secured federal funding in 2026, but the city’s budget now leaves it on the hook if costs balloon. These aren’t isolated incidents; they’re symptoms of a broken system. Across Canada, federal approvals for major infrastructure projects have become a bottleneck, stalling everything from transit expansions to energy corridors. Now, Prime Minister Mark Carney’s government is pushing a new law to cut through the red tape—but for Torontonians, the question is whether this reform will arrive in time to save their city’s most critical projects.

Why Toronto’s Infrastructure Gridlock Matters to the Entire Country

Canada’s infrastructure backlog isn’t just a Toronto problem—it’s a national crisis. The federal government’s Building Canada Act, passed in 2025, was supposed to streamline approvals for “projects of national interest,” but even that framework has hit snags. Projects like the Trans Mountain Pipeline Expansion and the Site C Dam in British Columbia have faced years of legal challenges and regulatory delays, costing billions and leaving communities in limbo. Now, Carney’s administration is proposing a new sovereign wealth fund, the Canada Strong Fund, to fast-track financing for these projects, but the real test will be whether the permitting process keeps up.

For Toronto, the stakes are especially high. The city’s infrastructure backlog is valued at over $10 billion, with delays costing residents in lost productivity, higher taxes, and degraded quality of life. The Gardiner Expressway, a vital artery for commuters, has been plagued by construction delays for years, and the Lower Don Trail’s postponement has left advocates for active transportation frustrated. Meanwhile, the Toronto Transit Commission (TTC) continues to grapple with aging infrastructure, and the city’s water system, already strained by climate change, is struggling to keep up with maintenance demands.

How the New Law Could (or Couldn’t) Help Toronto

The proposed reforms aim to create a “rapid lane” for projects deemed critical to Canada’s economic and energy security. Under the new rules, federal agencies would have to coordinate more closely, reducing the time it takes to secure permits. But for Torontonians, the devil is in the details. The Building Canada Act already designates certain projects as “nationally significant,” but local projects—like the Waterfront East LRT or the Scarborough Subway Extension—often fall into a gray area. If the new law doesn’t explicitly address municipal priorities, Toronto could still be left waiting.

Legal experts at firms like Torys LLP warn that even with faster permitting, provincial and local governments will need to align their processes. For example, Ontario’s own environmental assessment rules can still create bottlenecks. The city of Toronto, meanwhile, has been forced to defer some infrastructure work due to financial constraints, leaving residents to wonder if the federal government’s reforms will arrive too late.

What’s at Stake for Toronto’s Economy and Quality of Life

Toronto’s infrastructure isn’t just about roads and bridges—it’s about jobs, growth, and livability. The Waterfront East LRT, for instance, is expected to create thousands of jobs and boost real estate values along the lakefront. But if the project continues to face delays, investors may pull back, and the city’s reputation as a global hub could take a hit. Similarly, the Lower Don Trail is a critical link for cyclists and pedestrians, connecting neighborhoods like Riverdale and Leslieville. Its postponement isn’t just an inconvenience; it’s a sign that Toronto’s infrastructure is struggling to keep pace with its own growth.

For businesses, the impact is even more direct. Companies like TD Bank and Shopify rely on reliable transit and infrastructure to attract talent and operate efficiently. If Toronto’s reputation for bureaucratic delays persists, it could deter investment and slow the city’s economic engine. Meanwhile, residents are already feeling the pinch. Property taxes are rising, and the city’s budget is being stretched thin to cover deferred maintenance and new projects.

Who’s Fighting for Faster Approvals in Toronto

Several key players are pushing for change in Toronto. The Toronto Transit Commission (TTC) has been vocal about the need for faster approvals for transit projects, while the city’s auditor general has highlighted systemic issues in project management. Environmental groups, too, are watching closely—some fear that faster permitting could come at the cost of environmental protections, while others see it as a necessary step to address climate resilience. Organizations like the Canadian Infrastructure Finance Authority (CIFA) and the Major Projects Office are also key players, working to align federal, provincial, and municipal priorities.

At the local level, advocacy groups like the Toronto Environmental Alliance and the Active Transportation Alliance are pushing for transparency and accountability. They argue that any new law must include strong community engagement and environmental safeguards. Meanwhile, law firms specializing in infrastructure and environmental law—such as Davies Ward Phillips & Vineberg—are advising clients on how to navigate the changing regulatory landscape.

The Local Resource Guide: Who You Need If This Affects You

Given my background in urban infrastructure policy, if this trend impacts you in Toronto, here are the three types of local professionals you need to keep an eye on:

Boutique Infrastructure Law Firms

Look for firms with deep experience in both federal and provincial approval processes. They should have a track record of helping clients secure permits for transit, energy, and water projects. Criteria: Proven success with major Toronto projects, familiarity with Ontario’s environmental assessment rules, and a network of contacts at municipal and provincial levels.

Zoning and Land Use Specialists

These professionals help navigate the complex web of local bylaws and regional plans that can stall or accelerate projects. Criteria: Experience with Toronto’s planning board, knowledge of the city’s official plan, and a reputation for creative solutions to land use challenges.

Project Management Consultants with Government Experience

Firms that specialize in managing large-scale infrastructure projects, especially those with experience working with federal agencies like Infrastructure Canada. Criteria: A portfolio of completed projects in Toronto, strong relationships with city hall and provincial agencies, and expertise in risk management for public-private partnerships.

If you’re a resident, business owner, or investor concerned about Toronto’s infrastructure delays, these professionals can help you cut through the red tape and advocate for your priorities. Whether it’s securing permits for a new development, pushing for faster transit expansions, or ensuring your voice is heard in the approval process, having the right team on your side makes all the difference.

Ready to find trusted professionals? Browse our complete directory of top-rated experts in the Toronto area today.