Ontario Construction News staff writer
Ontario’s 2025 budget delivers a major boost to the province’s construction industry with billions in new infrastructure funding, expanded support for workforce development, and a broadened support for Indigenous project financing.
At the heart of the government’s infrastructure strategy is a $5-billion increase to the Building Ontario Fund (BOF), raising its total capital from $3 billion to $8 billion. The fund supports major infrastructure projects across five priority sectors: energy, affordable housing, long-term care homes, transportation, and municipal and community infrastructure.
The budget also allocates over $20 billion for highway, hospital, and transit projects this year. Notable projects include the Bradford Bypass, Highway 413, and the expansion of Highway 401.
“We are grateful to the government for their confidence in the Building Ontario Fund and our ability to deliver meaningful results,” said Michael Fedchyshyn, CEO of the Building Ontario Fund. “This announcement underscores our shared commitment to unlocking infrastructure that creates lasting benefits for communities and Indigenous partners across the province.”
In addition to the expanded BOF, the budget outlines more than $20 billion this year for highway, hospital, and transit projects. Key projects include the Bradford Bypass, Highway 413, the expansion of Highway 401, and the East Harbour Transit Hub in Toronto, which is expected to serve around 100,000 daily riders once completed.
The Indigenous Opportunities Financing Program (IOFP), formerly the Aboriginal Loan Guarantee Program, will now be administered under the BOF and will see its loan guarantee capacity tripled to $3 billion. The scope of eligible projects will expand beyond electricity infrastructure to include energy, pipelines, mining, critical minerals, and other resource sectors.
In a bid to address ongoing labour shortages and skills gaps, the Skills Development Fund Training Stream will receive an additional $100 million for training. Also, $224 million is being directed to expanding and modernizing training centres through the fund’s Capital Stream. The funding is aimed at helping unions, Indigenous training centres, and industry associations build or upgrade facilities with modern tools and technology.
A new $1-billion Municipal Housing Infrastructure Program will help local governments develop infrastructure needed to support housing growth. Meanwhile, the Housing-Enabling Water Systems Fund will grow by $625 million, bringing its total to $825 million, to support the repair and expansion of critical water and wastewater systems necessary to meet housing targets.
