The province is increasing the Ontario Municipal Partnership Fund (OMPF) by $100-million over two years, bringing the total funding envelope to $600-million by 2026.
The OMPF is the province’s main general assistance grant to municipalities, Provincial officials say.
The 2025 OMPF grant includes an immediate increase of $50-million to provide $550-million in unconditional funding to 390 municipalities.
The $50 million-enhancement has been targeted to small, Northern and rural municipalities and those with a limited property tax base, with the aim of assisting municipalities so they can provide critical municipal services to people across the province.
“We have heard from small, Northern, and rural municipalities that they need more support to meet the financial challenges they face in delivering services to their communities and that’s exactly what this significant increase to OMPF, which is being delivered through our recent Fall Economic Statement, will help them do,” said Minister Peter Bethlenfalvy, in a press releease.
“Municipalities are critical partners in delivering important local services and we will continue working together to build more homes, support economic growth and strengthen Ontario’s communities in a way that is sustainable and responsible.”
Ontario has been steadily increasing support to municipalities, Provincial officials say.
From 2019–2023, key provincial support to municipalities grew by over 45 per cent.
In 2023 alone, the government provided almost $10-billion to Ontario municipalities through key transfers.
This includes increasing the Homelessness Prevention Program to $654-million annually, as well as enhanced support for Northern and rural communities, such as the introduction of the $15-million Northern Ontario Resource Development Support (NORDS) program in 2021 and the investment of an additional $1-billion for the Ontario Community Infrastructure Fund (OCIF) over five years, starting in 2022.
“We will not leave any part of the province behind as we work together with our municipal partners to create stronger communities,” said Paul Calandra, Minister of Municipal Affairs and Housing, in a media release.
“By increasing our infrastructure investments for small, Northern and rural municipalities, we are helping lay the groundwork for more homes for the hardworking people of Ontario.”
“Today’s announcement continues to demonstrate our government’s commitment to rural and Northern municipalities,” said Lisa Thompson, Minister of Rural Affairs, in a press release.
“We have created a stand-alone ministry dedicated to rural affairs and we are listening and taking action as well as building supports that will enable small towns and rural communities to thrive and prosper. Increased funding through the OMPF will ensure small, rural, and Northern Ontario municipalities receive additional base funding needed to address local priorities.”
The OMPF is a formula-based program that incorporates annual data updates to ensure the program is responsive to changing municipal circumstances.
As the enhancement to the program is phased-in, all core grant recipients will receive 100 per cent or more of their 2024 OMPF allocation in 2025.
Beginning this winter, Ontario will consult with municipalities on their priorities for the OMPF as well as the implementation of a reporting framework to gain a better understanding of how the OMPF is supporting local communities.
The province is working with municipalities to support building more homes for people and families, Provincial officials added.
