Increased provincial support targets infrastructure, transit, and economic resilience in Northern Ontario
THUNDER BAY, Ont. —
The Ontario government is allocating nearly $28 million to the City of Thunder Bay as part of a broader effort to strengthen municipal services across small, rural and northern communities, the Ministry of Rural Affairs announced Wednesday.
The $27.8 million investment will be delivered through the Ontario Municipal Partnership Fund (OMPF), a key provincial program designed to support municipalities with limited property tax bases. The funding is intended to help maintain essential services such as road maintenance and public transit while enabling local economic development.
Provincial commitment to northern communities
“Today’s announcement demonstrates our government’s commitment to protecting rural and northern municipalities,” said Lisa Thompson, Minister of Rural Affairs. “Through the OMPF, we’re helping to ensure Thunder Bay has the resources it needs to address local priorities, support economic growth and improve quality of life for residents.”
The 2026 allocation marks an increase of nearly $3.5 million compared to the previous year for Thunder Bay. Across northwestern Ontario, total OMPF funding will reach approximately $64 million, benefiting 34 communities.
The province’s increased investment comes amid broader economic pressures, including global trade uncertainties, which have placed additional strain on municipal budgets—particularly in northern regions where infrastructure costs and service delivery challenges are often higher.
Local leaders highlight impact on essential services
“This investment will help the City of Thunder Bay continue delivering the services residents depend on every day,” said Kevin Holland, MPP for Thunder Bay–Atikokan. “Reliable support for municipal infrastructure and services is especially important in Northern Ontario, where communities face unique challenges. I want to thank our government for continuing to support municipalities as they respond to local needs and build strong, resilient communities.”
Municipal officials say the funding will play a critical role in sustaining core services while addressing long-standing infrastructure demands.
“The increased investment through the Ontario Municipal Partnership Fund is welcome news for the City of Thunder Bay and our residents. This funding will help us maintain essential services like road maintenance and emergency services while responding to the unique challenges faced by northern communities. We appreciate the province’s continued recognition of the vital role municipalities play in supporting strong, connected, and resilient communities,” said Ken Boshcoff, Mayor of Thunder Bay.
Broader economic strategy and funding expansion
The OMPF remains the province’s largest funding program dedicated to small, rural and northern municipalities. It operates on a formula-based model that is updated annually to reflect changing economic and demographic conditions across communities.
In November 2024, the Ontario government committed to expanding the fund by $100 million over two years, bringing total annual OMPF funding to $600 million by 2026.
“Through the Ontario Municipal Partnership Fund, our government is providing stable and predictable support to municipalities like Thunder Bay so they can continue delivering the services residents rely on every day. By maintaining our historic $600 million annual investment in OMPF in the midst of tariffs and economic uncertainty, we are delivering on our plan to protect Ontario and build the most competitive, resilient and self-reliant economy in the G7,” said Peter Bethlenfalvy, Minister of Finance.
Regional perspective underscores ongoing need
Regional municipal organizations say the funding is critical but stress the importance of long-term, predictable support.
“On behalf of the Northwestern Ontario Municipal Association, we welcome this continued investment through the Ontario Municipal Partnership Fund and the Ontario government’s recognition of the unique realities facing northern and rural communities. For municipalities like Thunder Bay and the 37 communities we represent across Northwestern Ontario, OMPF funding is essential to maintaining critical infrastructure, supporting public transit, and delivering the services residents rely on every day. We appreciate the Ontario government’s commitment to strengthening this program and encourage continued, predictable investments that reflect the true cost of service delivery in the North. NOMA looks forward to working with our provincial partners to ensure communities have the tools they need to grow, remain resilient, and support long-term economic development.”
Additional programs and next steps
Alongside OMPF funding, municipalities will also have access to other provincial supports, including the upcoming intake of the Rural Ontario Development (ROD) program, scheduled to open between August 17 and October 1, 2026.
The Ministry of Rural Affairs also plans to host regional rural summits later this year as part of its broader strategy, aimed at fostering economic opportunity and strengthening community resilience across Ontario’s rural regions.
For Thunder Bay and similar municipalities, the increased funding signals continued provincial recognition of the financial and operational challenges unique to northern communities—and the need for sustained investment to address them.