Major boost to provincial fund for rural and northern communities announced in Uxbridge

The provincial government is throwing in $100 million over the next two years into a fund targeted to small, northern and rural municipalities in Ontario.

The funding boost to the Ontario Municipal Partnership Fund (OMPF) brings the total funding envelope to $600 million by 2026. The fund is the province’s main general assistance grant to municipalities.

“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 … will help them do,” said Ontario Finance Minister Peter Bethlenfalvy Friday afternoon. “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.”

Bethlenfalvy, who is also the Pickering-Uxbridge MPP, delivered the announcement in Uxbridge, which, as a rural township, stands to benefit from the funding bump, part of an overall increase in support to municipalities that has grown by 45 per cent since 2019.

Ontario Finance Minister and Pickering-Uxbridge MPP Peter Bethlenfalvy

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.

Ontario Municipal Affairs and Housing Minister Paul Callandra was also at the announcement and said the government “will not leave any part of the province behind” as it works with its municipal partners. “By increasing our infrastructure investments for (these) municipalities, we are helping lay the groundwork for more homes for the hardworking people of Ontario.”

The OMPF is a formula-based program that incorporates annual data updates to ensure the program is responsive to changing municipal circumstances. Beginning this winter, Queen’s Park will consult with municipalities on their priorities for the fund to gain a better understanding of how it is supporting local communities.

Rural Affairs Minister Lisa Thompson, who also made the journey to Uxbridge, said the funding announcement demonstrates the government’s “commitment” to rural and northern communities.

“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.”

Wendy Landry, the president of the Northwestern Ontario Municipal Association (NOMA), said her organization was “thrilled” to hear of the funding boost. “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.”

“These municipalities greatly rely on this funding, and the additional $50 million in 2025 and $50 million in 2026 … will be vital.”