Ontario Regulation 231/25, filed under the Education Act, amends the framework for the management and use of restricted purpose revenues by district school boards. The regulation primarily updates Ontario Regulation 193/10 to clarify and reinforce the intended use of various legislative grant allocations for specific educational purposes. The regulation sets out detailed provisions on how school boards must allocate and manage funds that are designated for targeted programs and services, emphasizing accountability, proper usage, and continuity in applying these funds across fiscal years.

One focus of the regulation is internal audits. It mandates that amounts allocated to the regional internal audit teams component of the legislative grant regulation for a given fiscal year must only be used for internal audits conducted by a regional internal audit team. Any unspent amounts from prior years remain restricted for the same purpose in current or subsequent fiscal years, ensuring that resources dedicated to audit functions are not diverted elsewhere.

The regulation addresses retrofitting school space for child care, specifying that any unspent funds from prior years restricted for this purpose can only continue to be used for expenditures that align with designated criteria.

Special education funding is another area of focus. Boards are required to use their special education funds exclusively for special education purposes. Similarly, northern adjustment funds, Indigenous education initiatives, and board action plans must be applied solely to their designated objectives, with unspent amounts carrying forward for the same uses in future fiscal years. For Indigenous education, the regulation provides a formula for calculating available amounts for Indigenous education leads, Indigenous languages instruction, and First Nations, Métis, and Inuit studies, ensuring funds are aligned with actual expenses while preventing negative allocations.

Transportation funding to provincial or demonstration schools is restricted to eligible expenses for travel to specific institutions such as the Centre Jules-Léger Consortium, Ontario School for the Blind, Ontario School for the Deaf, or demonstration schools for students with severe communication exceptionalities.

Rural and northern education allocations are restricted to expenditures that improve educational programs, support services, pupil transportation, or maintain the operation of eligible schools, preventing funds from being redirected away from priority areas.

Finally, funding for French as a second language programs under the areas of intervention amount must be used only for expenditures related to eligible programs and initiatives as outlined in government-issued documentation for each fiscal year. Any unspent funds from prior years remain restricted for the same purpose, reinforcing consistent and targeted use of grant allocations.

Ontario (231/2025) November 4, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.