The Ontario government is expanding its financial support for municipalities with a $50 million increase to the Ontario Municipal Partnership Fund (OMPF), raising the total allocation to $600 million for 2026. The funding, announced Friday in Goderich, will assist 388 municipalities across the province—particularly small, rural, and northern communities—in maintaining and improving essential public services.
The OMPF serves as Ontario’s main general assistance grant to municipalities, helping local governments deliver vital services such as public transit, libraries, emergency response, and road maintenance.
Lisa Thompson, Minister of Rural Affairs, said the announcement highlights the province’s ongoing commitment to rural Ontario. She explained that the OMPF plays an essential role in “creating safe and strong rural communities across the province,” adding that the increase will ensure “rural and remote northern communities will receive the funds necessary to address local priorities that will allow them to thrive and grow.”
The $50 million boost follows consultations earlier this year and represents a 20 per cent funding increase over the past two years. The expansion is intended to provide local governments with greater financial stability amid economic headwinds and ongoing global uncertainty.
Finance Minister Peter Bethlenfalvy said the government is stepping up to support Ontario’s communities during a challenging economic climate. He noted that as the province continues to navigate tariffs and global uncertainty, the priority remains equipping municipalities with the resources they need. “As we continue to protect Ontario and build our province,” he said, “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.”
Since 2019, Ontario’s provincial support to municipalities has grown by more than 45 per cent. In 2024 alone, the government provided over $10 billion in municipal transfers through programs designed to strengthen infrastructure, transit, housing, and social services.
Among the major initiatives, the Ontario Community Infrastructure Fund (OCIF) received an additional $1 billion over five years starting in 2022, helping municipalities repair and upgrade local infrastructure. The Homelessness Prevention Program (HPP) provides nearly $654 million annually to municipalities to address housing instability and support vulnerable populations. The Gas Tax Program for Transit distributed almost $380 million in 2024–25 to help 102 municipalities improve public transit networks and operations.
The latest OMPF enhancement will be distributed across all four of its core funding components, ensuring that municipalities with limited property tax bases—especially in remote or economically constrained regions—receive equitable support.
The OMPF operates through a formula-based model that incorporates annual data updates to ensure the program remains responsive to changing local needs. This approach allows funding to adapt to evolving municipal circumstances, population shifts, and service demands.
For smaller communities in northern Ontario, the fund remains a cornerstone of annual budgets, providing resources for programs that might otherwise be out of reach through local taxation alone. The Ministry of Finance said the additional investment aligns with the government’s broader plan to “protect Ontario,” a multi-year strategy focused on economic resilience, infrastructure renewal, and fiscal stability at both provincial and municipal levels.
The province also reaffirmed its commitment to addressing Ontario’s housing shortage through closer collaboration with municipalities. Under the Municipal Housing Infrastructure Program (MHIP), the government has nearly doubled its investment to $4 billion, providing an additional $1.6 billion to support housing-related infrastructure such as roads, sewers, and water systems. The MHIP aims to remove barriers to homebuilding by financing the infrastructure needed to support new housing developments.
Many local leaders have welcomed the OMPF increase as a vital boost for small and rural communities facing tight budgets and rising costs. The fund is viewed as a critical tool for sustaining essential services, maintaining infrastructure, and supporting community well-being across Ontario’s diverse regions.
Thompson emphasized that the government’s approach recognizes the unique challenges faced by smaller municipalities and ensures that they have the flexibility to address local priorities effectively. “This investment recognizes that local governments are best positioned to understand their own priorities,” she said. “By supporting them directly, we are ensuring that people and families across Ontario benefit from reliable services close to home.”
The Ontario Municipal Partnership Fund increase forms part of the government’s wider “Fixing Ontario Together” agenda, which seeks to strengthen communities, build modern infrastructure, and ensure long-term financial stability. With municipalities now preparing their 2026 budgets, the additional $50 million is expected to ease financial pressures and provide greater predictability for councils as they plan the year ahead.
As Ontario continues to balance economic challenges and infrastructure demands, the expanded OMPF underscores the province’s commitment to protecting local services and supporting growth in every corner of the province.
