The Skills Development Fund (SDF) is a major funding initiative of the Government of Ontario designed to help employers, training providers and community organizations tackle labour and skills challenges. It offers financial support to external organizations rather than individuals, with a focus on innovative projects that improve hiring, training and retention outcomes across the province.
Role of the Skills Development Fund in the funding ecosystem
The SDF Training Stream provides project-based funding to Ontario employers, non-profit organizations, unions, sector associations, municipalities, hospitals and other partners to design and deliver training solutions. Supported projects aim to build a more resilient workforce, strengthen access to the labour market, enhance employer capacity to attract and retain workers, and respond to shocks in local labour markets or emerging sectors. Priority sectors include the skilled trades, construction and housing-related trades, automotive, manufacturing and other in-demand occupations.
Complementing this, the SDF Capital Stream finances capital assets that expand or improve training infrastructure. Through its SEED and GROW pathways, the Capital Stream can support technical planning work (such as engineering and architectural plans) as well as construction, renovation, retrofits, repairs, conversions and expansions of training centres. These facilities serve learners preparing for emerging and in-demand jobs in areas like the skilled trades, healthcare, information technology and other sectors with recruitment or training challenges.
General funding approach and eligible applicants
Across its streams, the SDF funds organizations based in Ontario that can demonstrate clear labour market needs and alignment with government priorities. Eligible applicants typically include employers, minister-approved apprenticeship training delivery agents, Indigenous organizations, non-profits, professional and industry associations, trade unions, municipalities, District Social Services Administration Boards, Consolidated Municipal Service Managers and hospitals. Educational institutions such as school boards, colleges, universities, Indigenous Institutes and registered career colleges generally participate as partners or co-applicants.
Projects must show how proposed activities or capital assets will support in-demand sectors and occupations, serve target participant groups (such as jobseekers, workers at risk of displacement, or people facing barriers to employment) and increase training capacity or volumes. Applications are submitted through Transfer Payment Ontario and are evaluated against transparent, measurable criteria set out in formal program guidelines for each stream and pathway.
Public accountability and program evolution
The SDF operates as an official Ontario government transfer payment program, with structured guidelines, intakes and assessment processes. The Training Stream has been active since 2021, and a dedicated Capital Stream was launched in 2023 to build on its success and address infrastructure gaps in the training system. Funding decisions are communicated to all applicants, and supporting documents such as application guides, FAQs and common application mistake summaries help ensure clarity and consistency in how public funds are allocated.