As part of the provincial government's historic increase to financial support for Ontario municipalities, the province is increasing the Ontario Municipal Partnership Fund (OMPF) by $100 million over two years, bringing the total funding envelope to $600 million by 2026. The OMPF is the province's main general assistance grant to municipalities.
The 2025 OMPF grant includes an immediate increase of $50 million to provide $550 million in unconditional funding to 390 municipalities. The $50 million enhancement has been targeted to small, Northern and rural municipalities and those with a limited property tax base, with the aim of assisting municipalities so they can provide critical municipal services to people across the province.
"We have heard from small, Northern, and rural municipalities that they need more support to meet the financial challenges they face in delivering services to their communities and that's exactly what this significant increase to OMPF, which is being delivered through our recent Fall Economic Statement, will help them do," said Minister Peter Bethlenfalvy. "Municipalities are critical partners in delivering important local services and we will continue working together to build more homes, support economic growth and strengthen Ontario's communities in a way that is sustainable and responsible."
Ontario has been steadily increasing support to municipalities. From 2019-2023, key provincial support to municipalities grew by over 45 per cent. In 2023 alone, the government provided almost $10 billion to Ontario municipalities through key transfers. This includes increasing the Homelessness Prevention Program to $654 million annually, as well as enhanced support for Northern and rural communities, such as the introduction of the $15 million Northern Ontario Resource Development Support (NORDS) program in 2021 and the investment of an additional $1 billion for the Ontario Community Infrastructure Fund (OCIF) over five years, starting in 2022.
"We will not leave any part of the province behind as we work together with our municipal partners to create stronger communities," said Paul Calandra, Minister of Municipal Affairs and Housing. "By increasing our infrastructure investments for small, Northern and rural municipalities, we are helping lay the groundwork for more homes for the hardworking people of Ontario."
"Today's announcement continues to demonstrate our government's commitment to rural and Northern municipalities," said Lisa Thompson, Minister of Rural Affairs. "We have created a stand-alone ministry dedicated to rural affairs and we are listening and taking action as well as building supports that will enable small towns and rural communities to thrive and prosper. Increased funding through the OMPF will ensure small, rural, and Northern Ontario municipalities receive additional base funding needed to address local priorities."
Quick Facts
- The OMPF is a formula-based program that incorporates annual data updates to ensure the program is responsive to changing municipal circumstances.
- As the enhancement to the program is phased-in, all core grant recipients will receive 100 per cent or more of their 2024 OMPF allocation in 2025.
- Beginning this winter, Ontario will consult with municipalities on their priorities for the OMPF as well as the implementation of a reporting framework to gain a better understanding of how the OMPF is supporting local communities.
- The province is working with municipalities to support building more homes for people and families. Ontario is investing nearly $2 billion in housing-enabling infrastructure through the Housing-Enabling Water Systems Fund and Municipal Housing Infrastructure Program, complementing support already being provided through the Building Faster Fund.
- Investing in key local infrastructure through programs like the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Program is part of the province's capital plan of more than $191 billion over 10 years to build critical infrastructure and get more homes built faster to support growing communities and lay a strong foundation for future generations.
Quotes
"Municipal fiscal sustainability is under pressure across Ontario. AMO welcomes this enhancement to the Ontario Municipal Partnership Fund as an important step in addressing these challenges. We look forward to working with the province to get our communities back on track as the drivers of Ontario's economy and quality of life."
- Robin Jones, President, Association of Municipalities of Ontario (AMO), Mayor, Westport
"Small and Northern municipalities depend on the OMPF to deliver the services that people and businesses rely on every day. These enhancements will help rural communities to keep pace with growing needs like housing affordability, aging infrastructure and homelessness that require new approaches and resources. ROMA thanks Minister Bethlenfalvy for responding to rural municipalities' concerns and looks forward to ongoing conversations to build sustainable, thriving communities."
- Christa Lowry, Chair, Rural Ontario Municipal Association (ROMA), Mayor, Mississippi Mills
"The Northwestern Ontario Municipal Association (NOMA) is thrilled to learn of the announcement by the Minister of Finance regarding the upcoming increase to Ontario Municipal Partnership Fund (OMPF). NOMA has been a long-time advocate for a permanent increase to the OMPF and we greatly appreciate that the Minister understands the importance of this fund specifically for small, rural, and Northern municipalities. These municipalities greatly rely on this funding, and the additional $50 million in 2025 and $50 million in 2026 which will amount to a total increase of $100 million over the next 2 years, will be vital to our small, rural, and Northern communities. The Minister's commitment to create a consultation group with municipalities in the winter of 2025 to discuss OMPF shows the province is dedicated to understanding municipal needs and ensuring we can work together to guarantee this fund meets the needs of the small and rural municipalities across Northern Ontario."
- Wendy Landry, President, Northwestern Ontario Municipal Association
"The Western Ontario Wardens' Caucus would like to thank the Provincial Government for the significant increase to the Ontario Municipal Partnership Fund (OMPF), supporting small and rural communities. OMPF is a critical funding source that empowers our rural communities to deliver essential services and address unique local priorities. This funding ensures that smaller municipalities have the resources to maintain infrastructure and invest in long-term development, fostering economic resilience and quality of life for our residents."
- Glen McNeil, Chair, Western Ontario Wardens' Caucus
"On behalf of the Eastern Ontario Wardens' Caucus, I thank Minister Bethlenfalvy for the increased investment in the Ontario Municipal Partnership Fund highlighted in the 2024 Fall Economic Statement. This $100 million boost signifies the government's recognition of the unique challenges faced by our 103 rural and small-urban communities. The funding will bolster essential services and also foster growth and resilience across our region."
- Peter Emon, Chair, Eastern Ontario Wardens' Caucus
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