Ford government threatens to cut funding to towns, cities that break ‘Buy Ontario’ rules

Posted September 16, 2026 5:08 pm

1 min read

The Ford government has written to towns and cities in Ontario, threatening to cut funding if they fail to follow procurement rules designed to boost spending on Canadian businesses.

Minister of Municipal Affairs and Housing Rob Flack wrote to the heads of council “to make clear our government’s expectation” that they would follow a series of rules prioritizing local bids for contracts.

“The Municipal Buy Ontario Procurement Directive requires municipalities, local boards and municipal services corporations to prioritize Ontario and Canadian products,” Flack wrote.

Get breaking National news

Get breaking Canada news delivered to your inbox as it happens so you won't miss a trending story.

“In light of this latest round of tariffs and anti-trade actions against Canada, adherence to these requirements is not optional. It is an absolute must. Municipalities must use every available opportunity to prioritize Ontario and Canadian goods and services.”

The minister said cities or towns found not to be complying with the law would lead to the province reconsidering what provincial funds would be sent to them.

Story continues below advertisement

The Association of Municipalities of Ontario, however, pushed back, suggesting cities are broadly in compliance and highlighting practical difficulties putting the plan into practice.

“Municipalities are already doing their part. More than 98 per cent of municipal procurement for non-construction goods and services was from businesses with Canadian addresses before the Buy Ontario Act came into effect,” the group wrote in a statement.

“Municipalities now have several months of experience with the new requirements, and we are hearing from municipalities and industry that some of the rules are adding time, cost and complexity to procurement.”