Ontario Warns Municipalities of Funding Cuts Over Procurement Rules

Minister of Municipal Affairs and Housing Rob Flack warned 444 municipalities that they face provincial funding cuts if they fail to comply with Buy Ontario procurement requirements. The directive mandates that local governments prioritize Ontario and Canadian goods and services, a move prompted by a trade war and tariffs from the United States.

Municipalities, which spend more than $22 billion annually, must now review their supply chains to replace foreign products with domestic alternatives. Premier Doug Ford reinforced the mandate, stating that prioritizing domestic procurement is the law for governments across the province.

The Buy Ontario Act became law in November 2025 and was expanded in April to include municipal spending. Flack indicated that failure to comply would force the province to reconsider funding made available to municipalities, alongside other consequences under the act.