Ford government announces $500 million in funding for Ontario municipalities

The money comes on top of the $695 million already provided to cities by the Ford government in conjunction with the federal government's Safe Restart program.

"Municipalities made it clear that they are going to need more certainty if they are going to continue to deliver the services that their constituents rely on each and every day," said Municipal Affairs Minister Steve Clark. "This additional half billion will help municipalities plan with more certainty for the year ahead and address any COVID-related impacts in their 2021 budgets."

The move comes after extensive lobbying by Toronto Mayor John Tory, whose city faces a $649 million budget deficit for 2021. The deficit was initially projected to be roughly $2.2 billion, but was offset by cuts made to the budget combined with funding from the federal and provincial governments.

It is unclear how much of the $500 million package will go to Toronto, but the plan reportedly prioritizes cities that have been less effective in curbing the spread of coronavirus.

Clark also said that he is calling upon the federal government to match the funds the provincial government has offered.

"All levels of government have a responsibility to pitch in and it is not too late," Clark said.

Finance Minister Peter Bethlenfalvy said that a "mixture of funds" will be used to support the program, including money taken from the Safe Restart program. It is unclear what the other sources of funding for the program are.

However, a report from December has suggested that the Ontario government has $12 billion in coronavirus relief funds unspent as of the previous month. While it is unclear if any of the fund remains, if it does, it may be tapped in order to fund the municipal bailout.