Government of Canada makes significant additional transfers to provinces and territories in support of health care and transit
July 14, 2022 - Ottawa, Ontario - Department of Finance Canada
As committed to earlier this year, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today confirmed that the provinces and territories have now received an additional $2.85 billion in funding for health care, public transit, and safer air in our schools.
Today’s transfers were made possible by the passage of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures, which received Royal Assent on June 23, 2022.
First, the federal government today transferred an additional $2 billion to the provinces and territories through a one-time top-up to the Canada Health Transfer (CHT), building on the $45.2 billion provinces and territories will receive this year through the CHT—a 4.8 percent increase over last year. This support will help provinces and territories reduce the backlogs of surgeries and procedures exacerbated by the pandemic.
Second, the federal government today provided $750 million to provinces and territories to deliver to municipalities to maintain public transit service levels, as they address shortfalls resulting from decreased ridership during the pandemic. To increase the impact of this investment, the funding was conditional on provincial and territorial governments committing to match the federal contribution. It is also conditional on a commitment to accelerate their work with their municipalities to build more homes for Canadians, to help make life more affordable in cities across the country.
Third, the federal government transferred an additional $100 million to provinces and territories through the existing Safe Return to Class Fund, to ensure the air in our classrooms is as clean as possible for students, teachers, and staff.
This funding continues the support provided through the original $2 billion Safe Return to Class Fund by specifically targeting ventilation-related improvement projects.
The total transfer amounts allocated today to provinces and territories are as follows:
|Province/Territory||CHT Top-up||Transit Funding||Safe Return to Class Fund||Total|
|Newfoundland and Labrador||$27,227,000||$4,136,000||$1,631,000||$32,994,000|
|Prince Edward Island||$8,574,000||$1,026,000||$898,000||$10,498,000|
“With today’s transfer of $2 billion, we are continuing to support provinces and territories to deliver the high-quality public health care that Canadians deserve. And, we are helping provinces and territories support our communities as they address pandemic-related public transit shortfalls with a $750 million transfer. This has the benefit of being tied to building more homes, so we continue supporting our economic recovery and help make life more affordable.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“These funds will help the provinces and territories address critical issues in our healthcare system, specifically the backlog of surgeries and diagnostics delayed because of COVID-19. If there is one thing that the last two years of the pandemic have demonstrated, it is that with good will and hard work, the federative nature of our country can yield considerable benefits. We look forward to seizing this historic opportunity to improve our treasured public health system.”
- The Honourable Jean-Yves Duclos, Minister of Health
“Our government is committed to working collaboratively with our provincial and territorial partners to deliver results for Canadians. Today’s transfer builds on the funding we provided throughout the pandemic to strengthen our communities.”
- The Honourable Dominic LeBlanc, Minister of Intergovernmental Affairs, Infrastructure and Communities
More than eight out of every 10 dollars provided in Canada to fight COVID-19 and support Canadians was provided by the federal government.
Pandemic-related funding is in addition to the $87.6 billion the Government of Canada is providing to provinces and territories through major transfers in 2022-23, including $45.2 billion for health care. CHT payments are made on an equal per capita basis to provide comparable treatment for all Canadians, regardless of where they live.
The federal funding to support municipalities facing transit operating shortfalls is being allocated to provinces and territories based on the formula already used for the Public Transit stream of the Investing in Canada Infrastructure Program. This calculation is based on a mix of transit ridership (70 per cent weight) and population (30 per cent weight).
- This funding builds on previous investments announced in July 2020 of up to $2 billion to support municipalities with COVID-19 operating costs and $2.4 billion to cost-match any additional provincial/territorial contributions to public transit operations under the Safe Restart Agreement.
- In March 2021, the federal government also provided a one-time additional investment of $2.2 billion to address infrastructure priorities in municipalities and First Nations communities by doubling the Canada Community-Building Fund.
- Today’s transfer is also in addition to the $14.9 billion over eight years, with $3 billion per year in permanent funding starting in 2026-27, announced in 2021 for public transit projects across Canada.
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Media may contact:
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
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