Ottawa — The federal government is reviewing how Ontario has spent billions of dollars from its flagship Skills Development Fund (SDF) after a scathing provincial audit revealed widespread political interference, questionable spending, and lobbying links to key Conservative insiders.
Federal Minister of Jobs and Families Patty Hajdu confirmed her department is examining the findings of Ontario’s auditor general, which flagged serious governance and transparency concerns in the $2.5-billion program. Hajdu’s office said it will conduct “full due diligence” to ensure federal contributions to the fund are spent effectively.
“Workforce development is an area of joint responsibility between the federal government and provinces and territories,” Hajdu’s press secretary, Jennifer Kozelj, said in a statement. “We will also be engaging with the Government of Ontario on this matter to seek mitigation measures to ensure funding is used effectively and transparently for our labour market agreements.”
The federal government provides Ontario with roughly $1 billion annually for workforce initiatives, and some SDF-backed projects have also received federal support. It’s not yet clear what measures Ottawa may implement following its review.
Political Staff Overruled Bureaucrats on Hundreds of Millions
The Skills Development Fund is a signature program of Premier Doug Ford’s government, touted at numerous press conferences as a tool to create jobs and close skills gaps. But the audit released last week paints a troubling picture.
The auditor general found that political staff overrode non-partisan civil servants more than half the time, approving $742 million in grants that were initially ranked as “poor,” “low,” or “medium” quality.
In 64 cases, organizations behind lower-ranked applications hired lobbyists to help secure funding. Those efforts resulted in $126 million in grants, with Rubicon Strategy — a firm led by Ford’s former campaign manager Kory Teneyke — linked to at least $82 million.
Not all grant recipients or amounts have been disclosed, but media investigations have already traced more than $100 million in lobbyist-connected funding.
Ford Defends Program Amid Criticism
Opposition parties say the findings expose a pattern of political favoritism. “It seems they’re using this important fund as a way to reward conservative insiders,” said Ontario NDP Leader Marit Stiles on Monday.
Teneyke has not responded to requests for comment. Premier Ford, however, defended the program vigorously, saying, “The Skills Development Fund is one of the best programs we’ve ever put together. It’s created 700,000 opportunities to teach a trade, no matter if it’s health care or manufacturing or in the skills trade themselves.”
Asked about the federal government’s review, Ford replied: “It’s our money, it’s in our budget, it’s on our books, and we look forward to them joining the program to make sure we have more skilled tradespeople helping people.”
Grants Raise Eyebrows
Among the grant recipients is King Animal Hospital, which secured funding through a lobbyist to train at least 100 veterinarians. A promotional video shows students working in a facility with a gym, two kitchens, a lounge, and even a horse-sized X-ray machine.
CEO Tracy Jones defended the grant in a statement, saying the program addresses a “critical workforce shortage” and “strengthens the province’s animal health care system.”