Federal Government Announces Accelerated Infrastructure Funding Payments as "First Step" to Supporting Municipalities

June 1, 2020

The Prime Minister announced today that municipal funding delivered through the federal Gas Tax Fund will be accelerated this year to help communities as quickly as possible while respecting public health guidelines.

This means that $2.2 billion in annual federal infrastructure funding for municipalities will be delivered in one payment in June.

The government has indicated that the early delivery of the full funding for 2020-21 will aim to help communities move forward with infrastructure projects more quickly, in the hopes of helping to restart local economies.

Municipalities have some flexibility to use this 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. 

While this announcement represents an accelerated payment of previously-committed funds, the Prime Minister indicated that this is a "first step", saying “we know there is more to be done to support municipalities.” The Prime Minister also indicated that the federal government continues to work with the Provinces to explore and coordinate further supports for Canada's municipal governments.

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