Ontario Skills Development Fund (SDF) Receives $955 Million Top-Up to Protect Jobs

In a bold move to fortify Ontario’s workforce against ongoing economic uncertainties and global trade challenges, the provincial government has announced a substantial $955 million expansion to the popular Skills Development Fund (SDF).  

Spread over three years starting in 2025–26, this new investment elevates the total funding for the SDF to a total of $2.5 billion.  

The SDF government funding program aims to enhance training, upskilling, and infrastructure development, ensuring that Ontario’s workers are well-equipped for the evolving job market. 

 

Ontario Skills Development Fund (SDF): Training Stream 

A significant $705 million portion of the new funding is allocated to the SDF Training Stream. This stream is designed to support innovative projects that address challenges in hiring, training, and retaining workers, including apprentices. By focusing on sectors experiencing labor shortages, such as manufacturing and healthcare, the program seeks to stimulate economic growth and create a sustainable, resilient workforce. 

The SDF Training Stream also emphasizes inclusivity, supporting initiatives that assist individuals facing barriers to employment, including those with prior involvement in the criminal justice system, racialized persons, Indigenous peoples, and persons with disabilities. By fostering a diverse and skilled labor force, Ontario aims to enhance its long-term economic competitiveness. 

Funding Snapshot: SDF Training Stream 

• Funding Amount: $705 million (2025-2028). 
• Funding Eligibility: Employers, industry associations, training providers, unions, and community organizations. 
• Eligible Activities: Training and upskilling, apprenticeship programs, workforce development initiatives, innovative hiring, and retention solutions. 
• Timeline: Applications open annually. Funding dispersed on an ongoing basis starting in 2025. 

Ontario Skills Development Fund (SDF): Capital Stream 

In addition to training, the SDF’s Capital Stream will receive $150 million over three years. This funding is earmarked for the construction and upgrading of training centers, particularly in high-demand sectors like skilled trades. By improving training facilities, Ontario ensures that workers have access to state-of-the-art resources, facilitating hands-on experience and practical skills development. 

These infrastructure investments are crucial for accommodating the anticipated demand for skilled workers. The government estimates that more than 500,000 skilled workers will be needed to fill job openings in Ontario over the next decade. Enhanced training facilities will play a pivotal role in meeting this demand. 

Funding Snapshot: SDF Capital Stream 

• Funding Amount: $150 million (2025-2028). 
• Funding Eligibility: Training providers, colleges, industry groups, unions, employers, and community organizations. 
• Eligible Activities: Construction, renovation, upgrading training facilities, and purchasing training equipment. 
• Timeline: Applications open annually. Funding dispersed periodically based on project approvals starting in 2025. 

Supporting Workers Amid Economic Challenges 

The expanded SDF comes at a time when Ontario’s workforce faces pressures from U.S. tariffs and global economic uncertainties. By investing in skills development, the province aims to mitigate the impact of these challenges, providing workers with the tools they need to adapt and thrive. 

“My message to these workers and their families is clear: We’ll always have your backs. Today’s announcement of a further $1 billion in SDF funding is just the latest step in our plan to protect Ontario by investing in workers and making sure they have the support they need to succeed, no matter what comes our way.” 
– Premier Doug Ford 

Get Started with Ryan’s Funding Experts 

Navigating government funding applications can be complex, but our Ryan team of dedicated funding experts is here to simplify the process. Our specialists can help you identify opportunities, prepare applications, and secure funding from programs like the Ontario Skills Development Fund (SDF).  

Reach out today to maximize your organization’s growth potential through government funding training and hiring programs.