Backgrounder: Over $30.1 Million transferred to the federal Gas Tax Fund (GTF)

In keeping with the commitment in Budget 2016, the Honourable Amarjeet Sohi, Minister of Infrastructure and Communities authorized the transfer of over $30.1 million in funding from a number of previously established funding programs. The funding was allocated this month to provinces and territories as a one-time top-up for fiscal year 2016-17. The funding is in addition to the $2.1 billion already made available to communities annually through the ongoing transfer program. This additional amount will not impact future federal GTF allocations or be included in future indexing calculations.

Remaining funds of legacy programs that were initially allocated to a particular province or territory under previous programs, such as the Building Canada Fund, remained within that jurisdiction. Funding from programs that were not allocated to a specific jurisdiction will be distributed based on the existing federal GTF per capita allocation formula across all provinces and territories.

The federal GTF provides all Canadian communities with a permanent, predictable and indexed source of long-term funding. The Government of Canada provides over $2 billion each year through the federal GTF, offering local communities the flexibility to make strategic investments across 18 different project categories, including roads and bridges, public transit, drinking water and wastewater infrastructure, and recreational facilities.