The Ontario government announced $215 million to boost the province’s shipbuilding and marine industries on June 25, 2025. This includes launching the $15 million Ontario Shipbuilding Grant Program (OSGP) to help provincial shipbuilders meet Canada’s defence needs.
Through the OSGP, the province aims to align with Canada’s National Shipbuilding Strategy while helping Ontario’s manufacturing businesses and workers navigate challenges such as U.S. tariffs and economic uncertainty. The program will fund initiatives focused on skills development, infrastructure upgrades, and acquiring new machinery and equipment for the shipbuilding sector.
“With our NATO allies meeting this week, Ontario workers are ready to step up and build the ships that will protect Ontario and Canada,” Prabmeet Sarkaria, Minister of Transportation stated in a press release. “As the federal government increases its defence commitment to meet our NATO spending targets, our government is ensuring Ontario workers and businesses have the skills and equipment they need to help. Now, it’s up to the federal government to ensure Ontario shipbuilders are included in its National Shipbuilding Strategy.”
Ontario’s shipbuilding businesses will benefit from the Ontario Shipbuilding Grant Program (OSGP), which is designed to strengthen Canada’s shipbuilding capacity as part of the federal National Shipbuilding Strategy. As the first program of its kind in the province, the OSGP will offer non-repayable grants covering up to 50 per cent of eligible project costs that enhance competitiveness, promote business growth, and build long-term industry capacity. Applications open in late July via Transfer Payment Ontario, with additional program details available on through Ontario’s funding opportunities webpage.
Ontario plays a vital role as Canada’s economic and manufacturing powerhouse, and its skilled workforce is well-positioned to support federal shipbuilding procurement needs. Backed by the Ontario Shipbuilding Grant Program (OSGP), the province’s shipbuilding industry will gain the expertise, infrastructure, and talent needed to strengthen Canada’s maritime security and contribute to the future of shipbuilding nationwide.
This investment will also support workforce development by helping workers upgrade their skills and adapt to new technologies and industry standards. These advancements will boost Ontario’s overall economic growth, with particular benefits for northern communities as the province unlocks new opportunities in the shipbuilding sector.