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Ontario Doubles Down on Workforce Investment with $1 Billion Expansion of the Skills Development Fund

Written by GrantMatch Team | May 15, 2025 3:55:49 PM

A Bold Commitment to Future-Proof Ontario’s Workforce

The Government of Ontario has announced a landmark expansion of its Skills Development Fund (SDF), committing an additional $955 million over three years. This brings the total program value to $2.5 billion, a bold step toward protecting Ontario’s workforce and supporting economic growth amid growing uncertainty from U.S. tariffs and global market shifts.

What’s New in the 2025–2026 Expansion?

The enhanced SDF includes two major streams of support, funded through the upcoming 2025 Ontario Budget:

SDF Training Stream

  • $705 million in new funding

  • Supports workforce development for sectors facing trade-related disruption

  • Prioritizes workers in manufacturing, health care, and other vulnerable industries

  • Helps retrain those impacted by layoffs into high-demand fields

SDF Capital Stream

  • $150 million in new funding

  • Helps organizations build, retrofit, or expand training facilities

  • Increases the capacity and quality of skills training delivery across Ontario

  • Supports hands-on, real-world experience for jobseekers and apprentices

Combined with a $100 million injection earlier in 2025, this expansion reflects Ontario’s long-term commitment to safeguarding its labour force and preparing for future economic pressures.

Who Can Apply?

Eligible applicants include:

  • Ontario-based employers

  • Non-profit organizations and Indigenous groups

  • Minister-approved non-college apprenticeship training delivery agents

  • Municipalities, hospitals, and district service boards

  • Professional, industry, or trade associations

Eligible Activities

Funding can be used for a wide range of training and infrastructure projects, including:

  • New construction of training facilities (with optional dormitories for trainees)

  • Renovations, repairs, and retrofits of existing facilities

  • Expansion or conversion of buildings for cross-functional or specialized training

  • Projects that enable real-life training environments and jobsite simulations

Why This Matters

With this expansion, Ontario is taking a proactive stance to ensure that workers impacted by economic challenges are supported with relevant training, better jobs, and bigger paycheques.

How GrantMatch Can Help

GrantMatch offers strategic support to help your organization access this transformative funding opportunity:

  • Eligibility Assessment

  • Application Preparation & Submission

  • Program Alignment & Positioning

  • Post-Approval Compliance & Reporting

With a proven track record of securing government funding across Canada, our team is here to ensure your SDF application stands out and delivers results.

Take the Next Step

The 2025 Ontario Budget, which will formalize these investments is set for release on May 15, 2025. Organizations planning to apply should begin preparing now.

Let’s protect Ontario’s workforce together.

Contact GrantMatch today to discuss your project and confirm your eligibility.