Ontario government mandates local procurement for public institutions

The Ontario government has issued directives requiring public sector institutions to prioritize local procurement to support Canadian businesses. Under the Buy Ontario Act, hospitals, universities, schools, and other provincially funded organizations must favor goods and services from Ontario, followed by the rest of Canada.

Minister of Municipal Affairs and Housing Rob Flack has warned municipalities, local boards, and municipal services corporations that failure to comply with the Municipal Buy Ontario Procurement Directive could result in the province reconsidering provincial funding. The government cited recent tariffs and anti-trade actions against Canada as justification for the mandate, with Premier Doug Ford stating, “Buy Ontario. Buy Canadian. To not is not an option. It is a law.”

The directive, effective April 13, 2026, includes strategic categories such as vehicle fleets and capital infrastructure. While the government aims to direct billions in public spending toward local firms, the Association of Municipalities of Ontario has expressed concerns regarding the practical implementation of the rules, noting that the requirements may add time, cost, and complexity to procurement processes.