The Government of Canada partners with municipalities to create jobs and improve quality of life for Ontarians
A News Release from the Office of the Prime Minister
Posted August 14th, 2019 on Niagara At Large
Niagara-on-the-Lake, Ontario – Whether getting people to work on time, building recreation centres for young people, or helping communities adapt to climate change, investments in local infrastructure create good, middle class jobs and make our cities and towns better places to live.
The Prime Minister, Justin Trudeau, today visited Niagara, Ontario, to highlight a one-time Municipal Infrastructure Top-Up in Budget 2019, which doubles this year’s federal transfer to municipalities in support of local infrastructure projects.
More than 600 communities and local roads boards in Ontario are benefitting from the first of two $408.3 million annual installments in federal funding in 2019-20 for local infrastructure projects. These transfers – along with the one-time top-up of $819.4 million – mean that more than $1.6 billion in federal funding is going to Ontario municipalities this year for the infrastructure projects they need.
Communities across Ontario are using the federal funding for a range of different projects. The Township of Tiny is installing a storm water drainage system to protect residents and businesses from damage due to flooding.
The Municipality of Chatham-Kent is replacing the Thamesville Bridge to provide safer, easier travel for residents and visitors, while the Toronto Transit Commission is using the federal funding for new subway cars and streetcars to help make services more reliable for transit users.
By working more closely with municipalities, the Government of Canada is making sure that communities across the country have the tools they need to complete important infrastructure projects and make life easier and more affordable for the middle class and people working hard to join it.
“This year, we’re doubling the amount of money that municipalities get through the federal transfer in support of local infrastructure projects. What that means for people in Ontario is an extra $819 million for projects that matter to you. With this funding, communities across the province can focus on the infrastructure projects their residents need most. By funding local infrastructure, we’re creating good, middle class jobs, growing our economy, and investing in Canadians and their future.” The Rt. Hon. Justin Trudeau, Prime Minister of Canada
“The Gas Tax Fund is a strong investment model to build on because it is a direct and reliable tool for municipalities to plan and deliver. The federal government recognized the value of this funding tool by doubling this year’s Gas Tax Fund transfer in Budget 2019— a transformative step forward welcomed by local governments. Right now, municipalities all across Canada are using every new dollar approved in Budget 2019 to deliver on renewal projects quickly and efficiently.” Bill Karsten, President of the Federation of Canadian Municipalities
* With many municipalities across Canada facing serious infrastructure needs, Budget 2019 proposes a one-time transfer of $2.2 billion in 2019-20 through the federal Gas Tax Fund to address short-term priorities in municipalities and First Nations communities. The amount of this one-time top up is based on the amount each recipient was allocated for the 2018-19 Gas Tax Fund transfer.
* Projects under this fund can be used for:
- o Productivity and economic growth – including highways and local roads, public transit, and regional and local airports
- o Clean environment – including drinking water, wastewater, and community energy systems
- o Strong cities and communities – including sport and recreation, cultural and tourism, and capacity building
* The two federal Gas Tax Fund installments for this year, along with the one-time top-up, flow to municipalities through the Association of Municipalities of Ontario, with the exception of the Toronto allocation that flows directly to the City of Toronto. A portion of the annual provincial allocation is also used by the province to improve rural roads in northern Ontario on behalf of local roads boards.
* The federal Gas Tax Fund delivers over $2 billion every year to over 3,600 communities across the country. In recent years the funding has supported approximately 4,000 projects each year.
* The federal Gas Tax Fund is flexible in allowing communities to apply funding to their most pressing local needs. Communities can invest across 18 different project categories, including transit, recreation, water systems and roads. They 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.
* Through its Investing in Canada plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.
* To date, more than 48,000 projects have been approved under the plan and the majority of these projects are either underway, or already completed*.* Related Product
Ontario’s 2019‒2020 federal Gas Tax Fund allocations <https://pm.gc.ca/en/news/backgrounders/2019/08/14/ontarios-2019-20-federal-gas-tax-fund-allocations>
- * Budget 2019 <https://www.budget.gc.ca/2019/home-accueil-en.html>
- * Investing in Canada, Canada’s long-term infrastructure plan <http://www.infrastructure.gc.ca/plan/icp-publication-pic-eng.html>
- * Federal infrastructure investments in Ontario <http://www.infrastructure.gc.ca/investments-2002-investissements/on-eng.html>
- * The federal Gas Tax Fund <http://www.infrastructure.gc.ca/plan/gtf-fte-eng.html>
- * The federal Gas Tax Fund in Ontario <https://www.gastaxatwork.ca/>
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