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Support Announced to Help Communities Restart the Economy

June 2, 2020
By Bob Peters

Cornwall Ontario – The Government of Canada is supporting small towns and big cities across the country to restart the economy by accelerating payments delivered through the federal Gas Tax Fund.

This means that $2.2 billion in annual federal infrastructure funding for communities will be delivered in one payment in June. Early delivery of the full funding for 2020-21 will help communities quickly move forward with infrastructure projects that will improve our quality of life and help restart local economies.

“From coast to coast to coast, Canadians are feeling the economic impacts of COVID-19, while they do what they can to protect the health and safety of their families and communities,” said Prime Minister Justin Trudeau. “That is why we are taking action to restart the economy, get Canadians back to work, and come out of this stronger. This funding will help communities address their immediate needs, while also planning the infrastructure they need for the future.”

Communities have flexibility to use the funding to meet their local needs. Projects could include access to high-speed broadband, improvements to water and road systems, and the building of cycling and walking paths. These projects create jobs, and improve how Canadians live, work, and play.

Since the start of the crisis, Prime Minister Trudeau and Deputy Prime Minister Chrystia Freeland have worked closely with premiers. The Government of Canada is working with the provinces and territories to look at ways to further support municipalities as part of this ongoing collaboration.

Quick Facts

In past years, payments to communities through the federal Gas Tax Fund have typically been made in two instalments, in summer and later in the year.
The federal Gas Tax Fund is a long-term, indexed source of funding for over 3,600 communities across the country. In recent years, it has supported thousands of projects annually.
The federal Gas Tax Fund includes 18 different project categories, including capacity building, sport infrastructure, and roads. Communities can also use the funds immediately for priority projects, bank them for later use, pool the dollars with other communities for shared infrastructure projects, or use them to finance major infrastructure expenditures.