The Ontario government is increasing its support to municipalities through a $50-million boost to the Ontario Municipal Partnership Fund (OMPF), bringing total funding to $600 million for 2026.
The funding will support 388 municipalities across the province, particularly small, northern and rural communities and those with limited property tax bases. The money will help municipalities deliver essential local services such as public transit, libraries, emergency response and road maintenance.
“Today’s announcement shows our government’s continued commitment to protecting and supporting rural and northern municipalities in Ontario,” said Lisa Thompson, Minister of Rural Affairs. “Through the OMPF, our government is helping to ensure that rural and remote northern communities will receive the funds necessary to address local priorities that will allow them to thrive and grow.”
The OMPF is Ontario’s main general assistance grant to municipalities. Following consultations earlier this year, the new funding represents a 20 per cent increase over the past two years.
“As we continue to navigate tariffs and global economic uncertainty, our government is stepping up to support Ontario’s communities – including small, northern, and rural municipalities,” said Peter Bethlenfalvy, Minister of Finance. “As we continue to protect Ontario and build our province, we will ensure municipalities have the tools they need to continue delivering critical local services to people and families in every corner of the province.”
Between 2019 and 2024, provincial support to municipalities increased by more than 45 per cent. In 2024 alone, Ontario provided over $10 billion through key transfers, including $1 billion through the Ontario Community Infrastructure Fund, $654 million through the Homelessness Prevention Program, and $380 million to help municipalities improve local transit through the Gas Tax program.
The $50-million increase to the OMPF in 2026 will be distributed across all four core grant components to strengthen support for smaller and northern communities and those with limited tax bases.
