Programs
Gas Tax Fund
The Gas Tax Fund provides predictable, long-term funding to municipalities to help them build and rehabilitate public infrastructure that achieves positive environmental outcomes.
More specifically, the Fund supports municipal infrastructure projects that contribute to cleaner air, water and reducing greenhouse gas emissions, and fall into the following categories:
- Drinking water
- Wastewater infrastructure
- Public transit
- Community energy systems
- Solid waste management
- Local roads
How the Fund Works
The Gas Tax Fund represents a $13 billion investment from 2005 to 2014. Every municipality in Canada receives a portion of the Fund. The funding allocation is determined at the provincial or territorial level based on population. Funding is provided up front, twice a year to provincial and territorial governments or to the municipal associations which deliver this funding within a province, as well as to Toronto. Projects are chosen locally and prioritized according to the infrastructure needs of each community. Municipalities can pool, bank and borrow against this funding, providing significant financial flexibility.
Next Phase
On April 1, 2009, Gas Tax Fund payments doubled to $2 billion annually. Agreements for this funding are in place until 2014.
The Government of Canada will also provide $2 billion per year beyond 2014. Municipalities will continue to receive stable funding for their long-term infrastructure priorities.
