The Federal Gas Tax Fund

Federal Gas Tax Fund - Budget 2019 Banner

Because many municipalities across Canada continue to face serious infrastructure deficits, Budget 2019 proposes a one-time transfer of $2.2 billion through the federal Gas Tax Fund to address short-term priorities in municipalities and First Nation communities. This will double the Government of Canada’s commitment to municipalities in 2018–19 and will provide much needed infrastructure funds for communities of all sizes, all across the country.

What's new with the federal Gas Tax Fund: PDF Version (Size: 602.33 KB) - HTML Version

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The federal Gas Tax Fund (GTF) is a permanent source of funding provided up front, twice-a-year, to provinces and territories, who in turn flow this funding to their municipalities to support local infrastructure priorities. Municipalities can pool, bank and borrow against this funding, providing significant financial flexibility.

The federal Gas Tax Fund delivers over $2 billion every year to 3600 communities across the country. In recent years the funding has supported approximately 4000 projects each year. Communities select how best to direct the funds with the flexibility to make strategic investments across the following 18 different project categories:

  • public transit
  • wastewater infrastructure
  • drinking water
  • solid waste management
  • community energy systems
  • local roads and bridges
  • capacity building
  • highways
  • local and regional airports
  • short-line rail
  • short-sea shipping
  • disaster mitigation
  • broadband and connectivity
  • brownfield redevelopment
  • culture
  • tourism
  • sport
  • recreation

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