Ottawa is going to earmark $14 billion of new money, over the next decade, for cities to invest in infrastructure projects.
The Building Canada Fund will grow over the life of the fund to give municipalities a chance to plan projects.
The fund will also include $4 billion for projects of national significance.
Toronto Mayor Rob Ford issued a statement on Thursday afternoon saying he is "happy to see that many of Toronto's ideas are reflected in the Budget and I look forward to working with the Federal Government to ensure Toronto benefits fully from these funding commitments."
TTC chair Karen Stintz said she hopes it means the federal government will come through with money to help build a Downtown Relief Line.
"I mean the federal government, I don't have any expectation will pay for it all, but I think making an application and having a ... significant contribution will make sure this line gets built."
Stintz told reporters at city hall she expects Ottawa might come up with one-third of the estimated $3.2 billion cost.
"When we look at the extension to the Yonge-University-Spadina line the city is paying a third. So that's the kind of thing we'd be looking at. The federal government paying a third, the province paying a third and the municipality paying a third," she said.
Canadian municipalities will also get $21.8 billion over 10 years from the gas tax fund, as well as $10.4 billion over 10 years from the GST Rebate for Municipalities.