Ottawa to review federal money committed to Skills Development Fund after damaging audit

Minister of Jobs and Families Patty Hajdu responds to a question during question period in the House of Commons on Parliament Hill in Ottawa on Friday, Oct. 3, 2025. THE CANADIAN PRESS/Sean Kilpatrick

In the wake of a scathing audit of Ontario’s Skills Development Fund (SDF), Canada’s federal government says it’s reviewing the troubled program to make sure the money it sends the province for jobs training is being well spent.

Canadian Minister of Jobs and Families Patty Hajdu told CTV News Toronto that her office was reviewing the report by Ontario’s auditor general that raised red flags about the $2.5 billion program and would also do its own homework.

“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 undertake full due diligence and seek mitigation measures to ensure funding is used effectively and transparently for our labour market agreements.”

It’s not clear what measures the federal government has planned. The federal government sends about $1 billion a year to Ontario via these agreements, and some projects that have received SDF grants have also boasted federal support.

The Skills Development Fund is a signature program of the Ford government, which made grant approvals the subject of numerous press conferences, though it has come under fire for funding private skills training in bars, dentists, and even a casino amid a crisis in public colleges.

Last week, Ontario’s auditor general pointed out that, more than half the time, political staff overrode bureaucrats to approve $742 million in fund applications the non-partisan staff had ranked as “poor”, “low”, or “medium.”

The auditor general also pointed out that the organizations behind 64 low- and medium-ranked applications hired lobbyists to get $126 million in funds.

A spokesperson for Labour Minister David Piccini said the ministry had taken into account feedback from the auditor general.

“We’ve met every federal reporting requirement, including annual outcome reports and audited financial statements. We have implemented strong evaluation methods, new selection criteria, and modern technology to better track outcomes — not just immediate job placements, but long-term career growth. After every funding round, we review our processes to ensure the program continues to meet Ontario’s evolving economic needs, support priority sectors, and address labour market demands,” the spokesperson said in an email.

Even though the provincial government has not yet made all of the grants, their recipients and their amounts public, CTV News was able to track more than $100 million in grants tied to lobbyists.

The lion’s share, of at least $82 million, was tracked to one company, Rubicon Strategy, which is led by Premier Doug Ford’s former campaign manager Kory Teneyke.

Opposition parties have cried foul, with NDP leader Marit Stiles saying on Monday, “It seems they’re using this important fund as a way to reward conservative insiders.”

Teneyke hasn’t yet returned messages from CTV News, and Ford brushed off the connections in a scrum at Ontario’s legislature on Tuesday.

“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,” he said.

Asked about the statement by the federal government, Ford said, “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.”

One of the applicants who got an SDF grant via a lobbyist is King Animal Hospital, which said it will train at least 100 registered veterinarians at its expansive campus north of Toronto.

A video published by the animal hospital said it has a gym, two kitchens, and a lounge. A horse could be seen being examined by what appeared to be a horse-sized X-ray machine, while students gathered around a stuffed dog doing what appeared to be CPR.

“We are addressing a critical workforce shortage requiring specific critical care skills, reducing turnover, and strengthening the province’s animal health care system,” said CEO Tracy Jones in a statement.