CFDA#
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Funder Type
Federal Government
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IT Classification
B - Readily funds technology as part of an award
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Authority
Infrastructure Canada
Summary
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
History of Funding
The federal Gas Tax Fund provides all municipalities across the country with a permanent, stable and indexed source of infrastructure funding. It was made permanent in 2011 at $2 billion per year, and is indexed at 2 per cent per year, starting in 2014-15, with increases to be applied in $100-million increments from 2014-15 to 2023-24. This represents $21.8 billion in flexible, long term funding for municipal infrastructure.
Additional Information
The federal Gas Tax Fund provides all municipalities across the country with a permanent, stable and indexed source of infrastructure funding. It was made permanent in 2011 at $2 billion per year, and is indexed at 2 per cent per year, starting in 2014-15, with increases to be applied in $100-million increments from 2014-15 to 2023-24. This represents $21.8 billion in flexible, long term funding for municipal infrastructure.
The federal Gas Tax Fund is allocated on a per-capita basis for provinces, territories and First Nations, but provides a base funding amount of 0.75 per cent of total annual funding for Prince Edward Island and each territory. This funding will be administered through renewed bilateral agreements outlining the terms and conditions for the use of the federal Gas Tax Fund.