The Government of Ontario has released the first block of emergency funding it intends to provide to municipalities as they recover from the COVID-19 pandemic.

The province announced on August 12 that it would provide the first $1.6 billion of the up to $4 billion under the federal Safe Restart Agreement. The money will help municipalities protect the health and well-being of the people of Ontario, while continuing to deliver critical public services, such as public transit and shelters.

"Since the beginning of the pandemic, we have had the backs of our municipalities, which is why we are announcing up to $1.6 billion in critical funding today to help strengthen our communities and safely restart our economy," said Premier Doug Ford. "This first round of funding will address the most urgent needs of our communities, ensuring critical services like transit and shelters are there when people need them most."

By the fall, the province’s 444 municipalities will receive $695 million in Phase 1 funding to help address operating pressures related to the COVID-19 pandemic. This funding will be allocated on a per household basis and shared equally among upper- and lower-tier municipalities. A further funding of up to $695 million will be available through Phase 2 to eligible municipalities after municipalities have provided the province with information on their estimated COVID-19 related financial pressures.

"The success of Ontario's municipalities is vital to our province's economic recovery," said Jim McDonell, Parliamentary Assistant to the Minister of Municipal Affairs and Housing. "We've been working in partnership with municipalities from day one to understand the financial impacts of COVID-19, and this historic agreement will ensure they have the funding needed to address their most urgent local priorities."

In addition, the province is providing over $660 million in the first phase of transit funding to the 110 municipalities with transit systems. The funding can be used to provide immediate relief from transit pressures, such as lower ridership, as well as for new costs due to COVID-19, such as enhanced cleaning and masks for staff. In the second phase, additional allocations will be provided based on expenses incurred to ensure the funding meets the needs of municipalities. As part of the Safe Restart Agreement with the federal government, up to $2 billion is being provided to support public transit in Ontario.

"Ontario's public transit systems are critical to supporting the economy and getting people where they need to go as the province gradually reopens," said Kinga Surma, Associate Minister of Transportation (GTA). "This historic agreement will help ensure that municipalities can continue to provide safe and reliable transit for the people of Ontario."

Ontario is also providing municipal service managers and Indigenous housing partners with an additional $212 million under the Social Services Relief Fund to help protect vulnerable people from COVID-19. This investment can help them protect homeless shelter staff and residents, expand rent support programming and create longer-term housing solutions.

The federal Safe Restart Agreement provides more than $19 billion to Canadian provinces and territories to help ensure a strong recovery and support frontline health care, families, and communities. Across all streams of federal investment, the Safe Restart Agreement provides over $7 billion in funding and in-kind supports to Ontario.

The agreement provides a total of up to $4 billion in funding to the province’s 444 municipalities and 110 public transit providers. This includes up to $2 billion to relieve municipal financial pressures created by COVID-19: $777 million from the federal government and $1.22 billion from the province. It also includes up to $2 billion for public transit, which will be cost-shared equally between Ontario and the federal government.