Ontario municipalities to receive $500M in new provincial funding to help COVID-related costs

TORONTO — Cash-strapped municipalities in Ontario will receive an additional $500 million to help address pandemic-related costs.

Municipal Affairs Minister Steve Clark says the money can be used to pay for community services and ongoing capital projects.

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The province says the new funding comes in addition to nearly $1.4 billion received from the federal government and given to communities earlier in the pandemic.

Clark says the new funding will be split between 444 municipalities in the province.

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Ontario municipalities are not allowed to run deficits by law, so they have laid off thousands of staff and contemplated deep service cuts to offset pandemic-related costs.

Local leaders have said that without continued financial aid from the federal and provincial governments they will be forced to raise taxes.

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