Ontario lawmakers resumed legislative sittings Tuesday after a 21-week break as the government put forward proposals on recycling, cannabis enforcement and archaeological reviews ahead of an Oct. 29 fiscal update.
The 2026 Ontario Budget projected a $13.8 billion deficit for fiscal 2026-27. Ontario's Public Accounts later reported a $13.0 billion deficit for 2025-26, which ended March 31, 2026. Canadian Press reported Finance Minister Peter Bethlenfalvy said this year's shortfall would be higher than the previous year's. Global News reported it could exceed the budget projection.
Ontario proposes giving itself authority to set rules for Blue Box fees and contract terms between producers and recycling operators. The producer-funded program serves more than five million households. The government says the proposal responds to rising costs and unexpected fees; Ontario Minister of the Environment, Conservation and Parks Todd McCarthy said the plan would keep the program's costs with producers.
A separate proposal would expand the Alcohol and Gaming Commission of Ontario's (AGCO) powers to inspect illegal cannabis storefronts and online sellers, seize products and equipment, and impose administrative penalties. Ontario estimates illegal sellers account for about 30% of cannabis sales. The province has about 1,800 authorized cannabis retailers.
The government also wants to speed up archaeological approvals. Ontario says its current four-stage assessment process can take up to 64 months; proposed changes aim to reduce approval timelines by an average of 80% and increase sector capacity by 45%. The province says faster reviews could help housing, infrastructure and other development proceed while protecting cultural heritage.
Separately, Ontario and the federal government announced $8.7 billion in measures Oct. 21 for strategic industries and workers affected by U.S. tariffs. Ontario New Democratic Party leader Marit Stiles criticized the response, telling Global News that the government lacked “an action plan and a strategy that meets the moment we are in.”
The Ontario Student Assistance Program (OSAP) review is continuing. Ontario paused OSAP payments linked to private postsecondary institutions during an audit and said payments would not resume until a strengthened validation process is in place. The province's fall economic statement is scheduled for Oct. 29.
