2025 Ontario Fall Economic Statement: Key Funding Opportunities in the Plan to Protect Ontario

Ontario’s Budget Goals 

The 2025 Fall Economic Statement echoes support that the province is already providing the steel, aluminum, copper, and auto sectors. The statement also accounts for proactive training and upskilling programs for workers who are (or could be) affected by layoffs, as well as substantial investments in community-level projects to shore up local resilience and reimagine local supply chains.  

To navigate the uncertain economic moment and strengthen the province, the plan also includes support for first-time homebuyers; provides tax relief for individuals, families, and businesses; backs the manufacturing sector broadly; attracts new private investment; strengthens Indigenous partnerships; promotes interprovincial trade; and cuts red tape to streamline processes for permits and approvals. The goal is that businesses and municipalities will be better equipped to accomplish ambitious, transformative projects that serve their organizations and communities. 

The provincial government projects deficits of $13.5B in 2025–2026 and $7.8B in 2026–2027, followed by a surplus of $0.2B in 2027–2028. 

Due to the new US trade policies, Ontario’s real GDP is expected to decelerate from 1.4% in 2024 to 0.8% in 2025 and 0.9% in 2026. The real GDP growth should begin accelerating again in subsequent years, with projected growth of 1.8% in 2027 and 1.9% in 2028. This growth will be fueled by the investments Ontario makes over the coming years in manufacturing, large infrastructure projects, worker resilience, and enhanced interprovincial and international trade.

Check out some of the funding and incentives highlights from the Fall Economic Statement below. 

Funding Highlights 

Tariff Responses: The FES highlights tariff-related and other business support and incentives that were announced in the Budget earlier this year. These efforts to protect workers and businesses include: 

• Protecting Ontario Account - $5B total to fortify Ontario’s economic resilience, fuel innovation, and fast-track high-growth firms 

• Protect Ontario Financing Program (POFP) - $1B to support Ontario-based businesses that have been affected by tariffs in the steel, aluminum, copper, and auto sectors 

• With the remaining $4B, the government is developing second and third streams to support other impacted industries 

• The Regional Development Program’s Advanced Manufacturing and Innovation Competitive (AMIC) Stream – $40M additional investment to continue supporting small- and medium-sized advanced manufacturing companies to invest in capital equipment, adopt technology, and develop worker skills in the aerospace, automotive, chemical, information and communications technology (ICT), life sciences, and steel sectors 

• Trade-Impacted Communities Program (TICP) - $40M to support community projects that improve local resilience, as well as large projects to grow and transform local clusters and industrial supply chains 

• Protect Ontario Workers Employment Response (POWER) Centres - $20M to provide access to training and upskilling for workers affected by, or at risk of, layoffs 

• Ontario Together Trade Fund (OTTF) - $100M additional investment, for a total of $150M, to help small- and medium-sized enterprises diversify into new markets and to enable businesses affected by tariffs to pivot production, create new sales partnerships, and expand interprovincial trade 

Tax Credits 

• Ontario Made Manufacturing Investment Tax Credit - The FES announced expanded eligibility to apply the 15% tax credit from the Ontario Budget. In its initial form, the tax credit required the expenditure and assets to become available for use in the same taxation year to qualify. Now, any manufacturing and processing equipment purchased after March 23, 2023 will qualify for this credit, as long as the expenditure is incurred in the year before its use. 

Housing 

• The province announced that it will match the federal government’s GST rebate for new homes up to $1M with a new Ontario rebate for the 8% provincial portion of the HST. 

• Municipal Housing Infrastructure Program (MHIP) - $1.6B additional investment to support construction of homes and critical infrastructure 

• Ontario Municipal Partnership Fund (OMPF) - $100M increase to the program to help deliver critical community services throughout the province 

Key Takeaways 

Ontario's 2025 Fall Economic Statement reasserts that the investments promised in the annual budget will proceed, and that resources are available to support organizations that have been impacted by new trade realities. 

To take advantage of these and other provincial funding opportunities that support organizational evolution, get in touch with GrantMatch. As experts in government funding and incentives, GrantMatch can help develop proactive funding strategies based on unique organizational visions, aligning individual projects with Ontario’s broader goals to fortify businesses and municipalities against trade disruptions.  

Contact the GrantMatch team today to begin creating a long-term funding strategy and experience the difference that a partnership can make in successfully obtaining funding.