Additional Support for Municipalities with Capital Projects During COVID-19
The Ontario government is providing an additional $500 million to help the province's 444 municipalities address ongoing COVID-19 operating costs. The new financial relief will help ensure the delivery of critical services and keep capital projects on track.
Ontario's funding is being prioritized to help municipalities hardest hit by the pandemic and can be used to address each community's unique needs based on COVID-19 related operating pressures. This funding is being allocated based on a combination of a base amount using Municipal Property Assessment Corporation (MPAC) household data and an amount based on the proportion of provincial COVID-19 cases (from January 1, 2021, to February 18, 2021) in the municipality's respective Public Health Unit.
This provincial investment builds on the $1.39 billion in operating funding provided to municipal partners through the joint federal-provincial Safe Restart Agreement. The second phase of the Safe Restart Agreement was allocated to all Ontario municipalities in December to ensure that no community entered 2021 facing an operating deficit from 2020.
The funding will help offset the impact of COVID-19 on 2021 municipal budgets in every part of Ontario. By protecting the municipal services people and businesses rely on most and preventing delays in capital projects, this funding is an essential investment in Ontario's economic recovery.