Ontario Government Increases Municipal Funding to $600 Million

The Ontario government has announced an increase in the Ontario Municipal Partnership Fund (OMPF), raising the total funding to $600 million by 2026. This increase includes an immediate $50 million boost for 2025, bringing the total to $550 million for that year. The additional funds are aimed at supporting 390 municipalities, particularly those that are small, Northern, and rural, or have a limited property tax base.

The OMPF serves as the primary general assistance grant for municipalities in Ontario. The government states that this funding is intended to help municipalities provide essential services. The increase is part of the province's broader financial support strategy for municipalities, which has seen a 45% rise in key provincial support from 2019 to 2023.

Minister of Finance, Peter Bethlenfalvy, highlighted that the increase is part of the government's Fall Economic Statement, emphasizing the role of municipalities as partners in delivering local services. The government has also committed to consulting with municipalities to better understand their priorities and the impact of the OMPF.

The announcement has been met with positive responses from various municipal associations, which see the funding as crucial for maintaining infrastructure and supporting local priorities. The Northwestern Ontario Municipal Association and the Western Ontario Wardens' Caucus have expressed appreciation for the increased support, noting its importance for rural and Northern communities.

This funding adjustment is part of a series of financial measures by the Ontario government to support municipalities, including investments in housing-enabling infrastructure and other community support programs.