Ontario Increasing Ontario Municipal Partnership Fund to $600 Million

As part of the provincial government’s historic increase to financial support for Ontario municipalities, 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.

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. “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. 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. “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. “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.”

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