Proposed legislation would prioritize public procurement of Ontario goods and services, helping Ontario tax dollars support Ontario workers

November 20, 2025

Ministry of Public and Business Service Delivery and Procurement

TORONTO — Later today, the Ontario government intends to introduce the Buy Ontario Act, 2025, that will, if passed, protect the province’s workers and businesses by prioritizing Ontario goods and services in public procurement. This new legislation and associated measures would be applicable to all public sector organizations, including municipalities, as well as contractors and subcontractors that are helping deliver the province’s more than $220 billion plan to build using Ontario goods and services first. These measures will deliver on the government’s commitment to protect Ontario by ensuring that in the face of U.S. tariffs and economic uncertainty, Ontario tax dollars are going to support Ontario workers and using Ontario products like steel, lumber, cars, trucks and more.

“Ontario workers and business owners’ livelihoods are under attack from President Trump and his tariffs, and they’re counting on us to step up,” said Stephen Crawford, Minister of Public and Business Service Delivery and Procurement. “Every year, the province spends more than $30 billion procuring goods and services that help serve the people of Ontario. We’re making sure that every possible procurement dollar that can be spent in Ontario is spent in Ontario, so we can protect our workers and build a more competitive, self-reliant and resilient economy.”

The legislation and associated measures being introduced today will help implement a Buy Ontario policy that prioritizes first Ontario and then Canadian goods and services, while still maintaining value for money for Ontario taxpayers and protecting procurement and major infrastructure projects from undue delays.

“Ontario’s more than $220 billion plan to build is the largest infrastructure plan in Canadian history, and we’re spending every dollar of that plan that we can right here in Ontario,” said Todd McCarthy, Acting Minister of Infrastructure. “As we build the transit, highways, hospitals, homes and schools our growing province needs, we’re also helping keep hundreds of thousands of workers on the job in sectors like construction, steelmaking, forestry, agriculture, manufacturing and more.”

These policies would allow the province to:

• Mandate the prioritization of first Ontario and then Canadian goods and services for all public sector organizations, including ministries, agencies, the broader public sector and municipalities.
• Set out specific requirements for how these public sector organizations are to prioritize first Ontario and then Canadian goods and services in contracts with vendors, including subcontractors.
• Review and ensure compliance from both public sector organizations and vendors with this policy, with penalties and consequences that could include holdbacks, fines, vendor performance management and vendor barring from future procurement.

In cases where Ontario or Canadian goods and services cannot be procured at a reasonable cost or timeframe that would maintain value for taxpayers, the policy would continue to allow procurement outside of Canada. However, the government is also taking steps to shore up Ontario’s domestic capacity and ability to meet the province’s infrastructure and procurement needs to minimize the need to procure outside the province. The province is also working to establish vendor lists of Ontario and Canadian suppliers to support their inclusion in provincial infrastructure and procurement processes, including as contractors and subcontractors.

“As U.S. tariffs continue to undermine the global economy, prioritizing the procurement of Ontario-made goods, services and products has never been more important,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “The Buy Ontario Act would serve as an important pillar in our government’s plan to protect Ontario, anchoring the province’s long-term economic prosperity by ensuring that domestic companies have more opportunities to grow, expand and create good-paying jobs for our workers.”

The province has already successfully worked with leading municipalities to prioritize Ontario workers during the procurement process. Earlier this year, in partnership with the City of Toronto and federal government, the province supported the city’s procurement approach of pursuing new Line 2 TTC subway cars being manufactured by workers at Alstom in Thunder Bay, aligning with prioritizing Ontario and Canadian goods and services. This approach is designed to help create good jobs in Ontario while maintaining a clear commitment to competitive pricing and high-performance standards. The province will work closely with municipalities to support even more municipal procurement of Ontario goods and services.

“We’ve seen our province come together like never before to protect Ontario workers and businesses in the face of tariffs,” said Rob Flack, Minister of Municipal Affairs and Housing. “Many municipalities have already shown leadership in prioritizing Ontario workers and products when it comes to their choices, and I look forward to working together to make sure even more procurement and infrastructure dollars at all levels of government help protect Ontario.”

Quick Facts

• Public sector contracts are awarded based on a range of weighted factors such as price, expertise and experience. The weight that can be given to local goods and services used in a supply chain will be increased through directives issued under this policy.
• First announced as part of the 2025 Ontario Budget, the Ontario Together Trade Fund (OTTF) is part of the province’s nearly $30 billion tariff relief and support plan, dedicated to protecting the province’s workers and businesses from economic uncertainty and building a more competitive, resilient and self-reliant economy.
• With a focus on small and medium-sized enterprises, the OTTF will help businesses across a diverse range of sectors make the necessary investments to strengthen operations in Ontario, expand market reach and protect workers.
• The Buy Ontario Act would extend selected provisions of the Protecting Condominium Owners’ Act, 2015 for one year to allow the government to continue working on consumer protection improvements for condo communities.
• Proposed amendments to the Highway Traffic Act in the Buy Ontario Act would broaden authorities for safety-related signage near school zones.

Quotes

“We are proud of our partnership with the Ontario government in the delivery of Ontario’s $220-billion infrastructure plan and to strengthen the provincial economy through the prioritization of domestic goods and services in our projects.”
– Angela Clayton
President and CEO, Infrastructure Ontario

“We are proud to get hundreds of thousands of workers to their jobs every day – and equally proud to directly create local jobs and a more resilient economy through the construction of our major transit projects. We are always looking for ways to support Ontario suppliers – whether they provide steel, systems, or services. This legislation is critical in enabling us to do precisely this.”
– Michael Lindsay
CEO, Metrolinx

“In the face of shifting trade dynamics, the advancements in the Buy Ontario/Buy Canada policy directly supports Supply Ontario’s efforts to modernize procurement, support local businesses, and protect Ontario jobs. By strengthening our supply chain and investing in homegrown industries, we’re helping ensure the reliable delivery of critical public services, while driving economic growth across the province.”
– James Wallace
CEO, Supply Ontario

“CME welcomes the government’s introduction of the Buy Ontario Act. Through CME’s Ontario Made program, we have long championed the critical importance of local procurement, and this forward-thinking legislation demonstrates the government’s commitment to turning this principle into action. By prioritizing Ontario-made goods and services in public procurement, this legislation strengthens local supply chains and safeguards manufacturing jobs. Ensuring Ontario tax dollars support Ontario workers and businesses will help manufacturers remain competitive, invest in innovation, and drive growth across the province.”
– Dennis Darby
President and CEO, Canadian Manufacturers & Exporters

Media Contacts

Liam Maloney
Minister’s Office
Liam.Maloney@ontario.ca

Communications Branch
MPBSDP.MediaRelations@ontario.ca