Ontario Increasing Support to Municipalities through the Ontario Municipal Partnership Fund

As part of the provincial government’s plan to protect Ontario and provide historic financial support for municipalities, the province is increasing the Ontario Municipal Partnership Fund (OMPF) by $50 million, bringing the total funding to $600 million for 2026. The funding will support 388 small, northern and rural municipalities and those with a limited property tax base, by providing critical services from public transit and libraries to emergency services and road maintenance.

“Today’s announcement shows our government’s continued commitment to protecting and supporting rural and northern municipalities in Ontario. The Ontario Municipal Partnership Fund plays an essential role in creating safe and strong rural communities across the province,” 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 the province’s main general assistance grant to municipalities. After consultation earlier this year, the additional $50 million enhancement builds on the significant increases in support that the government is providing and represents a combined 20 per cent increase over the last 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.”

From 2019 to 2024, key provincial support to municipalities grew by over 45 per cent. In 2024 alone, the government provided over $10 billion to Ontario municipalities through key transfers. This includes:

• An additional $1 billion through the Ontario Community Infrastructure Fund (OCIF) over five years starting in 2022.
• Nearly $654 million annually through the Homelessness Prevention Program (HPP).
• Almost $380 million to help 102 municipalities improve local transit through the 2024-25 Gas Tax program.

The government’s $50 million increase to the OMPF in 2026 will be spread across all four core grant components to support small, northern and rural municipalities, as well as those with a limited property tax base.

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