Ontario Launching New Funding Program to Build Long-Term Care Homes

The Ontario government is launching a new Capital Funding Program (CFP) to build more long-term care homes faster, especially in regions like the Greater Toronto and Hamilton Area (GTHA) and northern Ontario impacted by labour shortages, supply chain constraints and other challenges. This innovative new funding model is part of the government’s plan to protect Ontario by creating good jobs and building for the future, while ensuring seniors get the quality of care and quality of life they need and deserve.

“As Ontario ages, we need to protect our province by building long-term care homes faster, smarter and in the places that need them most,” said Natalia Kusendova-Bashta, Minister of Long-Term Care. “The success we’re already seeing at sites like Maxville Manor shows our new capital funding program will help us meet our ambitious construction targets and ensure Ontario families can receive world-class care close to home, for generations to come.”

To support more long-term care operators in the face of rising costs, the CFP will shift to a flexible, percentage-based funding model from the previous fixed, cost-per-bed model to better address construction and land cost variations across Ontario. The new model will provide increased ministry funding equivalent to a maximum of 85 percent of total eligible expenditures with a maximum that’s determined by location across four market segments. Not-for-profit operators will receive ministry funding earlier so that projects can advance to construction while eligible hospital and Indigenous operators can receive the entire amount of funding during their project’s construction period.

These changes build on the government’s progress in providing nearly four hours of direct daily care to every long-term care resident last year and will ensure funding and supports are tailored to the specific needs and conditions of each region, making it easier to build long-term care homes across the province.

The CFP will enable more redevelopment projects like Maxville Manor, a long-term care home in Maxville where construction is now beginning, thanks to the increased certainty and support the new model will provide. The not-for-profit home is upgrading its 122 existing beds and adding 38 new beds by renovating the existing building and adding two new buildings. The phased project will bring modern amenities to support residents and staff and will include a new dining room, spa, multi-purpose room, an adult day program suite and upgraded outdoor areas. The redeveloped, 160-bed home is expected to welcome its first residents in 2027.

Through innovative programs like the CFP, the Ontario government is making continued progress toward its commitment to build 58,000 new and upgraded long-term care beds across the province, as outlined in the 2025 Ontario Budget: A Plan to Protect Ontario.

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