On May 15th, 2025, the Government of Ontario released its 2025 Budget, A Plan to Protect Ontario. The budget document contains several measures that will impact Good Roads members.

Municipal Infrastructure Funding

• Increased Connecting Links Funding: Annual funding for the Connecting Links program will rise from $30 million to $45 million, helping municipalities maintain and rehabilitate roadways that connect to provincial highways.
• Support for Local Roads and Bridges: The province has committed to investing in the rehabilitation of critical municipal roads and bridges, though no specific funding allocation was announced.
• Municipal Pothole Prevention Program: A new program aimed at supporting pothole prevention and repair will be developed to enhance road safety. Funding details have not yet been provided.
• Housing Infrastructure Funding: An additional $400 million will be provided immediately to the Housing-Enabling Water Systems Fund (HEWSF) and the Municipal Housing Infrastructure Fund (MHIP) to accelerate housing-supportive infrastructure.

Road Safety

• Automated Speed Enforcement: Amendments to the Highway Traffic Act will require municipalities to make Automated Speed Enforcement (ASE) and Red-Light Camera (RLC) locations “more transparent” and to focus on road safety objectives.
  If approved, municipalities would be required to post more warning signage for ASE and RLCs. Officials stated that municipalities would require public disclosure on camera locations “to improve transparency”, something that municipalities are already required to do prior to and after the installation of ASE and RLCs.
  The statement provided to media said the amendments also seek to give the Province the authority to limit when ASE could generate and issue infractions for “minor speeding.” The changes would also give the Minister of Transportation more power to collect data from municipalities on their ASE and RLC programs.
• Community Safety Zones: The proposed amendments would allow provincial officials to create new criteria that municipalities must consider when designating such zones.
• Cycling Infrastructure Changes in Toronto: The Province has indicated plans to remove bike lanes on Queen’s Park Crescent and Avenue Road.
• Restrictions on Road Tolls and Congestion Pricing: The Municipal Act and City of Toronto Act will be amended to prohibit municipalities from implementing road tolls, including traffic gridlock pricing.
• Vehicle Tax Authority Removed in Toronto: The Province will remove the City of Toronto’s authority to impose a personal vehicle tax.

Other

• New Trade-Impacted Communities Program (TICP): Beginning in 2025–26, the Province will launch the TICP, offering up to $40 million in grants tailored to support communities affected by global trade changes. Eligible applicants include municipal governments and economic development stakeholders.
• Expansion of the Building Ontario Fund: The Province will provide up to an additional $5 billion to the Building Ontario Fund to support major infrastructure initiatives across the province.

It appears that the Province has heard the concerns of the municipal sector surrounding infrastructure funding and responded accordingly. This is a very welcome development, and the Government of Ontario should be commended for these commitments.

“The Government of Ontario’s expansion of the Connecting Links Program, its commitment to support the rehabilitation of critical municipal roads and bridges, and the development of a pothole prevention are important initiatives that will benefit local governments across the province. These funds demonstrate the Province’s commitment to infrastructure that directly improves safety, economic development, and quality of life in our communities.” – Scott Butler, Executive Director, Good Roads