WELLINGTON COUNTY – The $232-billion budget presented by the provincial government on May 15 is all about preparing for the impact of U.S.-imposed tariffs.
But it’s bleeding money, projecting a $14.6-billion deficit for the next fiscal year.
“We were elected with a mandate to protect Ontario to meet this moment,” said newly-elected Wellington-Halton Hills MPP Joseph Racinsky in a phone interview.
“The budget delays the path to balance by one year. But it has up to $5 billion to support businesses affected the tariffs.”
Racinsky noted the budget has $400 million for municipal water systems to help enable housing and the Town of Erin has already received $29 million of that.
He lauded the government for improving its credit rating, which has kept interest payments on its debt lower than they could have been.
“I think I’m happy about the fact we’re spending the lowest share of revenue on interest payments since the 1990s,” said Racinsky.
Perth-Wellington MPP Matthew Rae stated the budget “will protect Ontario and ensure we build a stronger province and country.”
He added it “outlines vital investments in our rural communities, such as housing-enabling infrastructure, primary care expansion and support for our small businesses.
“We will be there to support families, workers, and communities during these challenging economic times.”
Guelph MPP Mike Schreiner wasn’t shy when sharing his concerns with the budget.
“The budget I think just fails to invest in people,” said Schreiner.
“A lot of talk about cars, tunnels and booze, but very little investment to address, I think, some of the big anxieties and issues people are facing especially when it comes to housing affordability, health care and education.”
The Green Party leader also took issue with the budget’s lack of focus on current environmental issues.
“I think the budget mentioned alcohol 130-some times and it mentions climate change once, so I think that tells you all you need to know about the government and its misplaced priorities,” said Schreiner.
However, it wasn’t all negative.
Schreiner told the Advertiser he was happy to see a few things in the budget but he encouraged the provincial government to shift focus to funding education.
“I was happy to see support for workers and companies directly affected by Trump’s tariff threat,” he said.
“But I also know that part of tariff-proofing Ontario will need to make sure people can actually afford to live here and access health care and that our children don’t continue to learn in overcrowded classrooms.”
Schreiner added, “Our colleges and universities continue to be underfunded.”
Housing and construction
According to the budget, the province has pledged to spend an additional $400 million on the Municipal Housing Infrastructure Program and Housing-Enabling Water Systems Fund, as well as an additional $5 billion on the Building Ontario Fund.
The budget also includes nearly $30 billion to support the planning and construction of highway expansion and rehabilitation projects, $61 billion for public transit, $56 billion in health infrastructure and over $30 billion to build more schools and childcare spaces.
Business
The province has pledged to support businesses that invest in buildings, machinery and equipment that are used for manufacturing or processing, by temporarily increasing the Ontario Made Manufacturing Investment Tax Credit rate for Canadian-controlled private corporations.
According to the budget, this is expected to provide $1.3 billion in support over three years.
As well, a new $5-billion Protecting Ontario Account will look to offer emergency financial relief to businesses facing disruptions due to tariffs. The fund will provide relief for Ontario businesses that have exhausted available funding.
The provincial government will also spend $85 million to extend the Ontario Automotive Modernization Program (OAMP) and the Ontario Vehicle Innovation Network (OVIN) to support innovation and modernization in the automotive sector.
To ease financial pressures, the government has pledged to defer select provincially administered taxes for six months beginning April 1, providing an estimated $9 billion in cash flow relief to around 80,000 businesses.
The Workplace Safety and Insurance Board (WSIB) will reduce premium rates to their lowest in 50 years, saving businesses $150 million annually, and it will issue $4 billion in rebates to safe employers.
Finally, a new Ontario Shortline Railway Investment Tax Credit will provide a temporary 50% refundable tax credit on eligible track maintenance and rehabilitation costs.
Officials say that will offer $23 million in support over three years to strengthen Ontario’s shortline railway industry and protect businesses that rely on unified rail networks for transporting goods and raw materials.
Liquor
When it comes to the liquor industry, the province has pledged to introduce the Ontario Grape Support Program to help grape farmers and wineries by increasing the number of Ontario grapes in wine bottles.
The program will provide up to $35 million in annual support to eligible wineries, from 2025–26 to 2029–30, with total program funding of $175 million.
The province will extend and enhance the VQA Wine Support Program for wine producers, expanding total spending to $84 million annually or $420 million over the next five years.
Health care
The Ontario government is spending an additional $15 million over three years on the Life Sciences Innovation Fund.
Officials say this funding will support companies in advancing early-stage innovations into market-ready products, helping strengthen Ontario’s position as a leader in health and biotechnology.
In what it’s calling a significant boost to health infrastructure, the province plans to spend approximately $56 billion over the next 10 years, including more than $43 billion in capital grants.
As part of this commitment, $103 million will be allocated to additional planning grants and support for over 50 major hospital projects across Ontario, which will result in about 3,000 new hospital beds, officials say.
Key projects nearby include planning support for greenfield developments for Grand River Hospital and St. Mary’s General Hospital in Kitchener.
To address surgical and diagnostic backlogs, Ontario will spend up to $280 million over two years to expand Integrated Community Health Service Centres, enabling more access to MRI and CT scans, endoscopy procedures, and orthopedic surgeries in community-based settings.
In addition, over $235 million will be spent over the next two years to establish and expand up to 80 new primary care teams, connecting an estimated 300,000 more people to care in 2025, officials say.
This is part of a broader $2.1 billion primary care action plan to improve services for two million more Ontarians by 2029.
Finally, the province is proposing a new refundable Ontario Fertility Treatment Tax Credit, effective Jan. 1, 2025.
This credit will reimburse 25% of eligible fertility treatment expenses up to $20,000, offering families a maximum benefit of $5,000 annually to help reduce the financial burden of starting or growing a family.
Indigenous issues
The Ontario government is tripling the total loan guarantees available through the Indigenous Opportunities Financing Program, formerly known as the Aboriginal Loan Guarantee Program, increasing the fund to $3 billion.
Officials say the expansion not only boosts financial support but also broadens the program’s eligibility beyond the electricity sector to include projects in energy, pipelines, mining – including critical minerals – resource development and other sectors, enabling greater Indigenous participation in Ontario’s economic growth.
As well, the province is spending $70 million over four years on the Indigenous Participation Fund, previously the Aboriginal Participation Fund, beginning in 2025–26.
This funding will help Indigenous communities and organizations in regions with significant mineral activity build the capacity needed to engage effectively in regulatory processes related to mineral exploration and mine development, officials say.
Additionally, Ontario is committing $10 million over three years to establish new scholarship opportunities for First Nations post-secondary students pursuing careers in resource development.
Natural resources
To tap into Ontario’s natural resources, the province has pledged $500 million to create the new Critical Minerals Processing Fund, which it says will help attract investments in critical mineral processing capacity, to help ensure that minerals mined in Ontario will be processed in Ontario, by Ontario workers.
As well it is launching a new round of the Hydrogen Innovation Fund, spending $30 million to unlock hydrogen’s potential to drive economic growth, create jobs and support the province’s position as a leader in the clean energy economy, officials say.
Jobs
The Ontario government is allocating an additional $600 million to the Invest Ontario Fund, which it says will provide greater financial stability as it fulfills its mandate to attract investments and generate employment opportunities across the province.
To ensure Ontario’s workforce is equipped to meet the demands of key industries, the government is also making a substantial investment in skills training.
An additional $1 billion will be spent over the next three years into the Skills Development Fund Capital and Training Streams, raising the total funding commitment to $2.5 billion.
These funds, officials say, will enhance the capacity of training organizations to offer improved programs and will support the construction and modernization of training facilities. This initiative is aimed at helping skilled workers across the province access better opportunities in priority sectors.
In addition to long-term training infrastructure, the government is expanding immediate supports for job seekers.
The Better Jobs Ontario program, which helps cover costs such as tuition, transportation and childcare, will receive an additional $50 million in 2025–26 to enable more individuals to access vocational and skills training aligned with high-demand careers.
Furthermore, $20 million will be spent in 2025–26 to establish new training and support centres – previously called action centres – that will offer transition assistance to laid-off workers, including those affected by U.S. tariffs.
Tariffs, defence, policing
The budget outlines a plan to provide an additional $90 million in venture capital (VC) funding through Venture Ontario, which includes $50 million to Ontario-based VC funds focused on technologies that support national defence and related technologies such as artificial intelligence (AI) and cybersecurity, and $40 million to life sciences companies and biomanufacturers.
The province also pledged to spend $50 million over the next three years to create the Ontario Together Trade Fund. According to the budget, the fund will focus on expanding interprovincial trade by supporting investments in infrastructure, equipment and processes to enhance competitiveness in the face of U.S. tariffs.
Officials say $200 million in the new Ontario Shipbuilding Grant Program will provide non-repayable grants to provincial shipbuilders for projects that support the industry’s competitiveness, business growth and long-term capacity.
According to the budget, the program will directly support skills training, the purchase of machinery and equipment, and infrastructure improvements.
The budget also introduces the new Trade-Impacted Communities Program, which will provide up to $40 million in grants. According to the budget, the grants are flexible and tailored to the needs of individual communities and local industries.
Finally, the province outlined its plans to invest $57 million in two new H-135 helicopters to support the Niagara Regional Police Service and the Windsor Police Service with increased patrols, security and enforcement at key entry points at the U.S. border.
Education
For education, the province has pledged to spend an additional $207 million over three years in the Ontario Research Fund, to provide Ontario universities, colleges and research hospitals with funding to acquire infrastructure and engage in global research and development.
The province has also pledged more than $30 billion over the next 10 years, including approximately $23 billion in capital grants, to support new and redeveloped school and childcare projects.
It will also spend nearly $2 billion in the 2025–26 school year to repair and maintain schools.
Transportation
When it comes to transportation, there are a few points of interest in this year’s budget, starting with the province’s gasoline and fuel tax cuts.
The budget states that by making these cuts permanent, the average household would save about $115 per year.
The budget also proposes permanently removing tolls from Highway 407 East, which could save commuters nearly $7,200 annually.
The government has also outlined its plans to build on investments to GO Transit by delivering all-day, two-way service to Kitchener and Milton, and building new GO stations across the region and potential new rail corridors through midtown Toronto, Etobicoke, York Region and Bolton.