Provincial funding aims to boost economic resilience and support resource-based growth
THUNDER BAY, Ont. — The Ontario government is committing $15 million in annual funding to support infrastructure improvements across northern municipalities, positioning the investment as a key pillar in its broader strategy to strengthen economic resilience and competitiveness.
The funding will be delivered through the Northern Ontario Resource Development Support (NORDS) Fund, which will now operate as an ongoing program rather than a time-limited initiative. The province says the move will provide long-term certainty for municipalities managing infrastructure demands tied to resource development industries such as mining, forestry and agriculture.
“Ontario’s northern communities are an essential part of our province,” said George Pirie, Minister of Northern Economic Development and Growth. “Making NORDS an ongoing fund means northern municipalities can plan, invest with confidence and maintain the critical infrastructure that resource development operations rely on and ensure benefits are shared close to home.”
Infrastructure pressures tied to resource development
Northern municipalities often face disproportionate strain on infrastructure due to heavy industrial activity. Roads, bridges and water systems are frequently impacted by transportation and extraction operations, creating higher maintenance and upgrade costs for smaller communities with limited tax bases.
The NORDS Fund is designed to offset these pressures by supporting projects that both repair existing infrastructure and enable future economic development. Eligible investments include road rehabilitation, bridge improvements and water system upgrades linked to resource-based activity.
All 144 municipalities in northern Ontario, as defined under the Places to Grow Act, 2005, are eligible for the funding. The province said municipalities will be invited to submit project proposals through Transfer Payment Ontario later this summer, with additional guidance to follow from the Ministry of Northern Economic Development and Growth.
Track record of investment and project examples
Since its launch in 2021, the NORDS program has allocated approximately $75 million toward municipal infrastructure projects across the North. In the 2025–26 funding cycle alone, all eligible municipalities received support.
Among the funded initiatives:
- The City of Timmins received $400,000 to reconstruct a 16-kilometre հատված of Highway 101, addressing wear and tear caused by nearby mining and forestry operations.
- The Municipality of Shuniah was allocated $129,994 to rehabilitate Lakeshore Drive, a key transportation route for resource industries.
- The Town of Smooth Rock Falls secured $76,797 for a water main extension project aimed at improving water pressure and enabling future development.
The government says these investments are intended not only to maintain infrastructure but also to unlock new economic opportunities and support long-term community growth.
Part of broader economic strategy
Provincial officials framed the renewed funding as part of a wider economic agenda outlined in the 2026 budget, which aims to position Ontario as one of the most competitive jurisdictions in the G7.
“Strong municipalities are the backbone of Ontario. This $15 million annual investment through the NORDS Fund will help northern communities build modern, critical infrastructure and ensure families and businesses in the North have what they need to grow and succeed,” said Peter Bethlenfalvy, Minister of Finance. “This is part of our plan to protect Ontario and build the most competitive, resilient and self-reliant economy in the G7.”
The province noted that, since 2021, it has invested a combined $675 million in northern infrastructure through programs including NORDS, the Ontario Community Infrastructure Fund and the Municipal Housing Infrastructure Program.
Municipal leaders welcome continued funding
Municipal and regional leaders across northern Ontario have broadly welcomed the decision to extend the program, citing its role in addressing longstanding infrastructure gaps.
“The continuation of the NORDS program for the next three years is a critical investment in the future of northern Ontario. NORDS has proven to be a highly impactful tool for our municipalities, helping to unlock local economic opportunities, strengthen infrastructure, and support sustainable growth across the North. We thank Minister Pirie for his leadership and the Government of Ontario for recognizing the importance of this program and responding to the needs of northern communities.”
— Rick Dumas, Northwestern Ontario Municipal Association (NOMA) President
“FONOM is very pleased to see the NORDS program is continuing, as it has been a priority we have long advanced with the province. This program plays a key role in helping northern municipalities address longstanding infrastructure gaps while supporting communities experiencing growth tied to resource development. The ability to stack funding over multiple years is particularly important, as it allows municipalities to move forward with larger infrastructure projects that would otherwise be out of reach. This flexibility strengthens municipal financial planning and ensures communities are better positioned to support economic development and future growth.”
— Dave Plourde, Federation of Northern Ontario Municipalities (FONOM) President
Supporting housing and long-term growth
The funding is also expected to play a role in enabling housing development and broader economic expansion in northern regions.
“This investment is about working hand in hand with our municipal partners to get more shovels in the ground for housing and the infrastructure that supports growth. By strengthening roads, bridges, and water systems across northern Ontario, we’re creating the right conditions to build new homes, grow local industries, support good-paying jobs, and build a stronger economy today while setting the province up for long-term success.”
— Rob Flack, Minister of Municipal Affairs and Housing
“Our government is supporting northern communities with historic infrastructure investments delivered through initiatives including the annual NORDS Fund, the Ontario Community Infrastructure Fund and the Municipal Housing Infrastructure Program. As part of our capital plan, we are continuing to build and renew critical infrastructure to strengthen communities, keep workers on the job and protect Ontario.”
— Todd McCarthy, Acting Minister of Infrastructure
Outlook
With the transition to a permanent funding model, the NORDS program is expected to provide municipalities with greater financial predictability, enabling multi-year planning and larger-scale infrastructure projects. Provincial officials say the initiative will remain central to supporting northern Ontario’s economic development while addressing the unique infrastructure challenges faced by resource-dependent communities.