Ontario Budget 2025: Funding and Opportunities

Ontario’s 2025 Budget is out for all to see, charting a strategic course through the cloudy economic challenges towards a hopeful, smooth-sailing future. 

The Ontario government officially released the highly anticipated 2025 provincial budget that outlines significant investments, strategic initiatives, and new government funding programs designed to support economic growth, business stability, and community resilience amid ongoing economic challenges, including U.S. tariffs.  

With targeted support across key Canadian sectors, this Ontario Budget 2025 aims to position Ontario for both immediate recovery and sustained long-term success. 

“These tariffs, imposed by the U.S., have been a wake-up call for Canadians, a wake-up call that highlights the underlying issues we face as an economy, and a nation. But now is not the time for fear of tariffs and uncertainty, now is the time for growth and improvement.” 
– Canada’s Minister of Finance, Peter Bethlenfalvy   

 

Economic Growth: Protecting Jobs and Supporting Businesses 

Central to Ontario’s strategy to counteract the impacts of U.S. tariffs is the newly announced Protecting Ontario Account (POA), a $5 billion fund designed specifically to support businesses in preserving jobs, transforming operations, and fostering growth in strategic sectors significantly affected by tariffs. Key initiatives funded by the POA will include: 

• Six-month tax deferral for select provincially administered taxes, providing businesses with up to $9 billion in liquidity; and
• $4 billion in employer rebates through the Workplace Safety and Insurance Board (WSIB), with premium rates reduced significantly, saving businesses approximately $150 million annually; and
• $40 million for the Trade-Impacted Communities Program (TICP), which will support municipalities and industries disproportionately affected by trade disruptions; and
• $175 million Ontario Grape Support Program to assist grape farmers and wineries in increasing the use of Ontario-grown grapes in local wine production; and
• $20 million to establish training and support centres for laid-off workers to help businesses quickly adapt to labour market changes and workforce training needs. 

Innovation, Technology, and Competitiveness Government Funding 

Recognizing innovation and technological advancement as critical to maintaining competitiveness, the Ontario Budget 2025 outlines government funding support for innovation projects including: 

• Ontario Made Manufacturing Investment Tax Credit (OMMITC) temporarily enhanced and expanded, increasing the rate from 10 to 15%, providing $1.3 billion in additional support over three years, including eligibility for non-Canadian-controlled private corporations; and
• $500 million Critical Minerals Processing Fund (CMPF) aimed at enhancing processing capabilities for Ontario-extracted critical minerals, driving self-reliance and creating local jobs; and
• Life Sciences Innovation Fund renewed with funding directed towards early-stage companies developing innovative medical technologies and therapeutics; and
• $15 million renewed Hydrogen Innovation Fund to support businesses involved in developing hydrogen technologies, promoting sustainability and economic growth; and
• Ontario Together Trade Fund (OTTF) receives an additional $50 million, supporting businesses in developing new markets, re-shoring critical supply chains, and reducing reliance on U.S. markets; and 
• Enhanced programs for economic partnerships with Indigenous communities, fostering sustainable development and meaningful participation in Ontario’s economic growth. 

Automotive and Mobility Sector Funding Support 

The Ontario Budget 2025 emphasizes continued investment in Ontario’s automotive and mobility sectors, vital to economic growth and innovation, including: 

• $12 million for Ontario Automotive Modernization Program (OAMP) to enhance competitiveness among Ontario automotive parts suppliers; and
• $73 million expansion of the Ontario Vehicle Innovation Network (OVIN) to drive further innovation and growth within the automotive and mobility industries. 

Shipbuilding and Transportation Funding 

Supporting transportation and shipbuilding as key economic drivers, Ontario is investing: 

• $200 million in the Ontario Shipbuilding Grant Program to strengthen Ontario’s shipbuilding industry, enhancing economic competitiveness and job creation; and
• Ontario Shortline Railway Investment Tax Credit, a new 50% refundable tax credit providing up to $8,500 per track mile annually, aimed at improving railway infrastructure and transportation logistics for businesses. 

Infrastructure and Skilled Trades Funding 

Infrastructure development remains central to Ontario’s economic growth strategy. The Ontario Budget 2025 commits more than $200 billion through the Building Together Fund, presenting significant business opportunities across sectors, including: 

• Major transportation projects, including Highway 413, Bradford Bypass, and expansions of existing highways to enhance connectivity; and
• Extensive investments in public transit infrastructure, including expansions of the Ontario Line, Hamilton LRT, Hazel McCallion Line, and Eglinton Crosstown West Extension; and
• Record-setting $56 billion investment in healthcare infrastructure, supporting numerous hospital construction and renovation projects, presenting substantial procurement opportunities; and
• Additional $400 million investment in municipal housing-enabling infrastructure through the Housing-Enabling Water Systems Fund (HEWSF) and Municipal Housing Infrastructure Program (MHIP); and
• Expansion of the Skills Development Fund (SDF), providing essential training and skills development, directly benefiting employers and addressing workforce demands. 

Community Innovation Funding Investments 

The Ontario Budget 2025 continues Ontario’s commitment to inclusive community empowerment and innovation-driven growth. Government funding includes enhancements to the Indigenous Participation Fund, providing Indigenous communities with increased support for economic development projects linked to natural resources and critical infrastructure. 

A number of investments were also announced for clean technology and innovation programs, including expansions of electric vehicle (EV) initiatives and substantial new investments in the EV ChargeON Program to support Ontario’s transition to a greener, sustainable economy. 

Additional Business Funding Opportunities 

• Northern Ontario Heritage Fund Corporation (NOHFC): An additional $30 million investment over three years beginning in 2025–26, supporting economic development, job creation, and workforce capacity building in Northern Ontario communities. 
• Agri-Food Sector Support: Ontario is increasing annual funding for the Risk Management Program (RMP) from $150 million to $250 million over three years, providing stability for agri-food businesses facing market and trade uncertainties. 
• Expanding Venture Capital: An additional $90 million in venture capital funding through Venture Ontario, targeting early-stage companies in defence, artificial intelligence, cybersecurity, and life sciences sectors, bolstering firm-level competitiveness and economic resilience. 

Partnering with Ryan Canada for Government Funding Success 

Navigating Canadian government funding programs can be complex. Our Ryan Canadian team of government funding experts specializes in helping businesses across Canada identify and access a variety of grants, loans, and tax credits that can support business growth and economic expansion projects.  

Whether your business is pursuing infrastructure improvements, workforce training initiatives, or innovation-driven projects, our government funding experts provide strategic guidance to maximize funding outcomes, streamline application processes, and ensure compliance with official program criteria. Is your business eligible? Connect with our team to learn more.