‘Always expecting more’: Ford government pushes back against Toronto’s new deal bid

Posted November 3, 2026 5:23 pm

2 min read

As the City of Toronto pushes the Ford government to ink a fresh “new deal” to secure its finances amid a slew of budget pressures, several cabinet ministers at Queen’s Park are indicating the provincial coffers might remain shut, for now.

The initial new deal was ironed out in November 2023 after Olivia Chow was first elected as mayor. The Ford government, at the time, agreed to provide $1.2 billion to the city in operating support over three years starting in the 2024-2025 fiscal year.

But with a looming expiry date in 2027– Toronto is hoping to get the Ford government on side before time’s up. It’s become a key agenda item for Chow, who returns to City Hall for a second term, with a larger mandate from Toronto residents after receiving over five hundred thousand votes in last week’s election, breaking records.

Despite Chow’s renewed push, however, Finance Minister Peter Bethlenfalvy indicated the province is not opening the door to talks on any renewed new deal.

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“We’re going to continue to digest [deal] 1.0,” said Bethlenfalvy said. “I’ve been here for over eight years, and they’re always expecting more.”

Those comments follow the province’s Fall Economic Statement, where the Ford government projected $36 billion in deficits over the next three years. The government attributed the bleak update to U.S. tariffs impacting the province’s steel and auto sectors, lower income tax receipts, and a slow housing market.

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While Municipal Affairs Minister Rob Flack offered up some hope for Toronto stating he “didn’t think a decision had been made yet” on the possibility of deal 2.0, however he said more money for Toronto is not coming “right now.”

But talks with Chow, Flack said, will continue.

“Let’s get her sworn in again, and we’ll continue to work closely with Mayor Chow.”

In January, while Chow said Toronto’s finances had stabilized from a $1.8 billion deficit when she first took office in 2023, the city projected a $1.1 billion shortfall into 2027.

Structural deficits, declining development charge revenues and concerns about the expiration of the initial new deal are just some of the financial pressures Chow is facing in her second term.

In a statement, the city told Global News that the new deal was a “significant step forward in addressing the City’s fiscal challenges” and that the municipality is looking forward to working with the province to “advance shared priorities.”

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The original new deal had the province agree to fund new transit including the Eglinton Crosstown LRT and the Finch West LRT, plus operating shelters and uploading both the Gardiner Expressway and the Don Valley Parkway.

The Ford government announced in June it’s taking ownership of both highways in fall 2027 and that up to $353 million is being provided for operation and maintenance until the upload is complete.

The City of Toronto said its staff are currently developing a first draft of its new budget. The new term of Toronto city council begins on November 15.

© 2026 Global News, a division of Corus Entertainment Inc.