Ontario introduces POWER Act to cut red tape, speed approvals and boost workforce mobility

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Ontario Construction Report staff writer

The Ontario government introduced new legislation on Monday, aimed at reducing regulatory burden, speeding up project approvals and strengthening workforce mobility as part of a broader effort to boost economic resilience.

The Protecting Ontario’s Workers and Economic Resilience Act, 2026 (POWER Act) would, if passed, advance the province’s plan to streamline permits and approvals so projects can move forward more quickly and with greater certainty, while also supporting businesses and helping workers transition into high-demand jobs.

“This legislation is the next chapter in our government’s work to help build a more resilient and self-sustaining economy that can withstand disruption and make Ontario the best place in the G7 to invest, do business and create jobs,” said Andrea Khanjin, Minister of Red Tape Reduction. “By cutting red tape, we’re creating the certainty and confidence businesses need to invest and grow here in Ontario.”

Since the introduction of the Building a More Competitive Economy Act in fall 2025, the province says it has made progress on business permitting reforms, including reducing and streamlining permissions, simplifying navigation and improving accountability. The government says more than 150 permits have been completed or are under review, with a goal of eliminating or streamlining at least 35 per cent of all business-facing permits by the end of 2028.

As part of the next phase, Ontario is proposing regulation changes to clarify service standards for business permit applications. It also plans to support One Project, One Process mining proposals by using artificial intelligence to help identify required permits earlier in project planning and flag regulatory barriers. In addition, the province is moving ahead with a Heritage Framework Transformation that would introduce a new information technology system aimed at improving accountability, compliance, customer service and project timelines.

The government says the changes are intended to reduce delays and regulatory burden while creating a more predictable investment environment that supports job creation and long-term economic growth.

The POWER Act also includes measures related to workplace health and safety, labour mobility and training harmonization across provinces. The government says these changes are intended to make it easier for workers to move between jurisdictions and access in-demand jobs, while maintaining safety standards.

Also, the legislation proposes expanding access to Ontario medical residency positions for Ontario-connected international medical graduates, which the province says would help strengthen the physician workforce, particularly in underserved communities.

The bill also includes a proposed amendment to the Ombudsman Act that would require the provincial ombudsman to be proficient in both English and French.

“Workers are the backbone of our economy, and the POWER Act is about making sure they are protected, prepared and positioned to succeed,” said David Piccini, Minister of Labour, Immigration, Training and Skills Development. “These proposed changes will strengthen workplace health and safety, reduce unnecessary barriers to labour mobility and help more people move quickly into good-paying, in-demand jobs.”

Since 2018, the province says it has taken about 700 actions to eliminate unnecessary red tape, which it estimates has saved $1.3 billion for businesses, municipalities and public institutions.

The government says the POWER Act and related measures include 23 initiatives aimed at reducing regulatory barriers while supporting workers and improving economic competitiveness.

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