Ontario Has Updated Buy Ontario Rules

What You Need to Know

Ontario has formally rolled out its updated Buy Ontario policy framework, expanding how provincial and municipal procurement must prioritize Ontario and Canadian-made goods and services. Enabled by the Buy Ontario Act (Public Sector Procurement), 2025, the framework is now in effect and applies not only to provincial ministries and agencies, but, for the first time, to municipalities, local boards, and municipal services corporations.

A Stronger Buy Ontario Mandate

Ontario has implemented this through two binding directives: the Buy Ontario Procurement Directive (covering the provincial government and broader public sector) and the Municipal Buy Ontario Procurement Directive (extending similar requirements to municipalities). Together, these directives replace earlier policies and create a more enforceable procurement regime.

What’s Changed for Provincial and Broader Public Sector Organizations

As of April 13, 2026, the Buy Ontario Procurement Directive applies to Ontario ministries, provincial agencies and public bodies, Ontario Power Generation and its subsidiaries, the Independent Electricity System Operator, and designated broader public sector organizations such as hospitals, school boards, colleges, and universities.

Covered organizations must now prioritize Ontario and Canadian-origin goods and services where permitted under applicable trade agreements and thresholds. The Directive also introduces additional requirements for fleet procurement, capital infrastructure projects, and expanded documentation and reporting obligations.

Buy Ontario Comes to Municipal Procurement

A major shift is the extension of Buy Ontario requirements into municipal procurement. Under the Municipal Buy Ontario Procurement Directive, municipalities, local boards, and prescribed municipal services corporations must now apply Buy Ontario rules on a phased timeline: April 13, 2026, for general procurement and fleet requirements, May 15, 2026, for capital infrastructure rules, and June 1, 2026, for most remaining municipal entities.

Municipal buyers must retain documentation showing compliance and apply the requirements to key procurement categories, including fleet vehicles and major construction projects. Emergency procurements remain exempt, and all requirements continue to be subject to trade agreement constraints.

Support and Guidance

To support implementation, the Province, through Supply Ontario, is providing guidance materials, training sessions, and FAQs to clarify eligibility criteria, compliance expectations, and the interaction between Buy Ontario rules and trade obligations.

Why This Matters

Overall, the updated framework represents a meaningful shift in Ontario public procurement. It introduces new compliance requirements for public-sector buyers and creates expanded opportunities for Ontario-based suppliers and service providers seeking to compete for provincial and municipal work.