This afternoon, Minister of Finance Peter Bethlenfalvy released Ontario’s 2025 Budget, A Plan to Protect Ontario, aimed at protecting businesses and workers, removing domestic trade barriers and shoring up the economy to better brace for the impacts of U.S. tariffs.
The budget includes overall spending of $232.5 billion, including $91.1 billion in health spending, an increase of ~$1.8 billion or 2% from 2024-25. The deficit continues to grow to $14.6 billion this year, with Ontario projecting a balanced budget by 2027-28. The budget also includes a $3 billion contingency fund and a $2 billion reserve fund.
The Topline for Health Care
Budget 2025 confirms modest health care spending with very little net new investments outside primary care and community-based surgeries. Health care accounts for about 40% of government spending. The increase of ~$1.8 billion in spending from 2024-25 accommodates population growth, implementation of the Primary Care Action Plan, and continued investments in home and community care, mental health, long-term care and cancer services. However, Budget 2025 offers limited new operational funding across most health and social sectors.
The government has allocated over $220 million in net new investments for life sciences initiatives like the Ontario Research Fund and the Life Sciences Innovation Fund, demonstrating this will continue to be a top priority for the government as it seeks to diversify Ontario’s economy to mitigate the impacts of U.S. tariffs.
Health and Life Sciences Highlights
- Primary Care (previously announced)
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- New investments of $300 million over four years (starting with $60 million in 2025–26) to expand Primary Care Teaching Clinics.
- Continued rollout of the Primary Care Action Plan, aiming to connect all Ontarians with a primary care provider within four years.
- Integrated Community Health Service Centres
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- Investing up to $280 million over two years to expand Integrated Community Health Service Centres, providing MRI and CT scans, endoscopy procedures and orthopedic surgeries to reduce backlogs and improve access to publicly funded services.
- Hospitals and Infrastructure
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- No significant new operational funding, 4% increase in base and targeted funding.
- $56 billion committed over 10 years for health infrastructure (mostly previously announced).
- $103 million in new planning grants for seven hospitals across Ontario (Grand River Hospital and St. Mary’s General Hospital, Brant Community Healthcare System, Southlake Regional Health Centre, Royal Victoria Regional Health Centre, and Lake of the Woods District Hospital).
- Health Human Resources
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- The government is continuing to invest in the Ontario Learn and Stay Grant with an additional $261.7 million over three years to increase the number of nurses, paramedics, and medical laboratory technologists in the province.
- $159.6 million beginning in 2026–27 to expand Learn and Stay for four medical school cohorts.
- Life Sciences
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- New fast-track pilot for select high-priority cancer drugs, which are part of the U.S.-led Project Orbis.
- $15 million over three years for the renewed Life Sciences Innovation Fund (LSIF).
- $15.5 million over three years to scale up the output of medical isotope production.
- $207 million over three years for the Ontario Research Fund – Research Infrastructure to provide Ontario universities, colleges and research hospitals with funding to acquire infrastructure and engage in global research and development.
- $90 million in venture capital (VC) funding through Venture Ontario, including $50 million to Ontario-based VC funds focused on technologies that support national defence, AI, cybersecurity and $40 million to funds that will help life science companies and biomanufacturers to innovate and grow.
- $750 million over five years to fund up to 20,500 STEM seats per year at publicly assisted colleges and universities.
- Launching a second consultation to explore innovative policy options inspired by the initial findings from the first round of Preferred Provider Network (PPN) consultations, including considering the introduction of new Any-Able-and-Willing-Provider legislation, which would enable any eligible pharmacy to join PPNs.
The Other Shoe Drop
Marit Stiles, Leader of the Official Opposition of Ontario, released a statement criticizing Budget 2025, citing its failure to provide meaningful relief or address pressing issues in the province. Key areas of concern are the insufficient investments in essential services (health care, education, housing) and a lack of a comprehensive plan to address economic uncertainties, particularly U.S. tariffs.
Additionally, Liberal Party Leader Bonnie Crombie released a statement echoing a similar sentiment, specifically outlining the lack of substantive measures to tackle crises surrounding affordability, education, and health care.
The Council of Universities was critical of the lack of stabilizing investments in the budget for the post-secondary sector. The Canadian Union of Public Employees (CUPE) Ontario issued a statement critical of the budget and calling for an end to health care privatization.
What’s Next
- The budget bill will proceed to second reading, and committee review will follow.
- The legislature will enter a recess next week and is expected to rise in the first week of June.
- Budget and major pieces of government legislation are expected to be deferred to the fall session after the summer break.
Budget Resources
- Read the Ontario 2025 Budget here.
- Read the press release here.
- Read Santis Health’s rapid recap on the Throne Speech and the impacts of The Protect Ontario Through Free Trade Within Canada Act on regulated health professions here.
Have questions about the 2025 Ontario budget? Reach out to our Ontario political experts at dylan.brenneman@santishealth.ca or clare.michaels@santishealth.ca.
Appendix: Select List of Ontario Budget Commitments
Supports for Ontario Workers and Businesses
The budget outlines approaches to address the economic threat of U.S. tariffs by providing relief for workers, businesses and communities while supporting investments in manufacturing and other high-priority sectors, including:
- Providing a six-month interest and penalty-free period for any Ontario businesses that choose to defer payments under select provincially administered taxes.
- Creating the Protecting Ontario Account, a fund of up to $5 billion designed to provide businesses with critical support to protect jobs, transform businesses, grow strategic sectors of the economy, and support businesses affected by tariff-related disruptions.
- Allocating an additional $600 million to the Invest Ontario Fund to increase Invest Ontario’s responsiveness to current economic challenges and help ensure Ontario stays competitive globally when attracting major investments.
- Investing $20 million in 2025-26 to mobilize new training and support centres, providing immediate transition support for more laid-off workers, including those impacted by U.S. tariffs.
- U.S. tariffs have created economic challenges across Ontario, and individual communities may face major disruptions. The government is taking action to respond to the unique and unprecedented needs of Ontario communities by creating the new Trade-Impacted Communities Program (TICP).
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- The program will also support large-scale strategic initiatives that enable and transform key sectors and industrial clusters to help businesses grow, find new markets and investments, and diversify their supply chains. Municipal governments, economic development organizations, business accelerators, incubators, as well as sector or industry associations will be eligible for the program.
Health Human Resources
- The government is continuing to invest in the Ontario Learn and Stay program with an additional $261.7 million over three years to increase the number of nurses, paramedics, and medical laboratory technologists in the province.
- Improving access to primary care across the province by investing an additional $159.6 million over three years, beginning in 2026-27, to expand the Ontario Learn and Stay Grant to a total of four cohorts of medical school students.
- As previously announced, the government is expanding the Skills Development Fund by $955 million over three years starting in 2025-26. This includes $705 million in new funding to train more workers through the SDF Training Stream, including those who work in health care and manufacturing. The government is also providing $150 million over three years to support increased demand in the SDF Capital Stream to help more organizations build, expand and retrofit their training facilities to deliver better training programs.
Primary Care
- Committing an additional $300 million over the next four years, including $60 million in 2025-26, to build or expand 17 new Primary Care Teaching Clinics’ capacity to provide dedicated learning environments for primary care physicians and other practitioners while also providing care to Ontarians.
- A callout to the province’s investment of $1.8 billion for Ontario’s Primary Care Action Plan, led by Dr. Jane Philpott, to connect every person in the province to a family doctor and primary care within the next four years.
Health Infrastructure
- Enhancing health care infrastructure across Ontario with an additional $103 million in planning grants for seven hospitals to address capacity issues, aging infrastructure, and growing service demands.
- Approximately $56 billion over the next 10 years in health infrastructure, including over $43 billion in capital grants, to support more than 50 major hospital projects that would add approximately 3,000 new beds over 10 years to increase access to quality care. Investments are being made to support hospital projects, including:
- Funding for the planning of the new Campbellford Memorial Hospital to replace the current hospital and create a “rural hub” with various community support services and additional inpatient beds.
- Funding for the planning of the new Orillia Soldiers’ Memorial Hospital to plan the construction of new hospital facilities to address aging infrastructure and support future growth;
- Investing in renovating and expanding the existing Timmins and District Hospital emergency department to almost four times its current size, with additional acute treatment areas and an area for emergency mental health care. Once complete, the new space will address the increase in emergency department volumes and incorporate modern standards and best practices for improving the health of Northern communities;
- Investing in the William Osler Health System – Peel Memorial Hospital to support the March 2025 start of construction for a new multi-storey patient tower with up to 250 inpatient beds and a new, state-of-the-art, 24/7 emergency care centre to connect more people to a wide range of emergency and urgent medical care;
- Advancing the Weeneebayko Area Health Authority project, including support for early works in August 2024. Construction is expected to be complete by 2030 for a state-of-the-art hospital and Elder Care Lodge in Moosonee, along with a new ambulatory care centre on Moose Factory Island, bringing much-needed health services to the region;
- Supporting the North York General Hospital – Inpatient Redevelopment Project for the construction of a new patient tower to address high acuity programs and services, renovations to the hospital’s existing facilities to address infrastructure deficiencies and connectivity between buildings, and the conversion of the existing emergency department into an urgent care centre;
- Funding for the Runnymede Healthcare Centre Post-Traumatic Stress Injury Centre of Excellence, a two-facility project to expand access to comprehensive mental health and rehabilitation treatment for first responders affected by work-related stress or trauma; and
- Funding for the University Health Network’s West Park Reactivation Care Centre to transform the former West Park Healthcare Centre hospital building into a 188-bed reactivation care centre.
Life Sciences, Research and Development
- $750 million over five years to fund up to 20,500 Science, Technology, Engineering and Mathematics (STEM) seats per year at publicly assisted colleges and universities.
- Investing $207 million over three years starting in 2025-26 in the Ontario Research Fund – Research Infrastructure to provide Ontario universities, colleges and research hospitals with funding to acquire infrastructure and engage in global research and development.
- $90M in venture capital (VC) funding through Venture Ontario, including $50 million to Ontario-based VC funds focused on technologies that support national defence, AI, cybersecurity and $40 million to funds that will help life science companies and biomanufacturers to innovate and grow.
- Investing an additional $15 million to renew the Life Sciences Innovation Fund (LSIF) program for three years beginning in 2025–26.
- Accelerating access to life-saving medications by improving existing processes and launching a new pilot pathway, beginning with select high-priority cancer drugs tied to U.S.-led Project Orbis. This will help people access life-saving medications faster and put Ontario at the forefront of health care innovation.
- Investing an additional $15.5 million over three years, starting in 2025–26, to increase the reactor’s production of medical isotopes to a 24-hour-per-day, seven-day-per-week schedule, which will expand the supply and diversity of isotopes produced to help spur new discoveries.
Long-Term Care
- Nothing net new. Callout to planned investments that total a historic $6.4 billion since 2019 are in place to build 58,000 new and upgraded long-term care beds across the province by 2028 to modern design standards. As of April 2025, 23,977 beds (147 projects) are either opened, under construction, or have the approval to start construction, including:
- Advancing construction on 103 long-term care projects that started between April 2022 and April 2025, by providing a supplemental increase to the Construction Funding Subsidy, to stimulate the start of construction for more long-term care homes across Ontario.
- Introducing new tools to the long-term care sector to support financing the development of long-term care beds with the support of the Building Ontario Fund.
- Providing up to an additional $5 billion to the Building Ontario Fund to partner with Canadian institutional investors to help unlock infrastructure projects in key priority sectors like energy, affordable housing, long-term care and transportation.
Mental Health and Addictions
- Ongoing $700 million investment in homelessness prevention programs each year, as well as the $378 million the province is investing in 19 Homelessness and Addiction Recovery Treatment (HART) Hubs.
- Investing more than $303 million over the next three years to stabilize the community-based mental health and addictions services sector. This commitment will provide a four per cent increase in the sector’s base funding to support community-led and delivered mental health programs.
- As previously announced, the province is investing $75.5 million to further support homelessness prevention and provide people living in encampments with access to reasonable alternative accommodation.
- Bill 6, Safer Municipalities Act, 2025, is undergoing second reading debate, which, if passed, would provide municipalities and police with the enhanced tools they need to end encampments and public illegal drug use while helping those facing addiction and mental health challenges.
Other Health Investments
- Investing up to $280 million over two years to expand Integrated Community Health Service Centres, providing MRI and CT scans, endoscopy procedures, and orthopedic surgeries to reduce backlogs and improve access to publicly funded services.
- Supporting families through the Ontario Fertility Treatment Tax Credit with over $160 million over three years and investing an additional $100 million in 2027-28 to support the continued expansion of the Ontario Fertility Program.
- Investing $3 million over three years to establish a veteran-focused funding stream within the Seniors Community Grant Program. This initiative supports community-based learning opportunities and promotes social and physical activities.