Building stronger communities across Newfoundland and Labrador with the federal Gas Tax Fund

News release

Doubling of the federal Gas Tax Fund delivers a boost in Newfoundland and Labrador for 276 communities 

August 12, 2019 - Paradise, Newfoundland and Labrador - Infrastructure Canada

Modern public infrastructure is key to promoting economic growth, strengthening the middle class and developing healthy, sustainable communities. That is why our government is renewing its commitment to communities through the federal Gas Tax Fund and delivering much needed support for their local priorities. 

Today, the Honourable Francois-Philippe Champagne, Minister of Infrastructure and Communities, was joined by the Honourable Lisa Dempster, Newfoundland and Labrador’s Minister of Municipal Affairs and Environment, and His Worship Dan Bobbett, Mayor of the Town of Paradise, to announce that the first of two $15.7 million annual installments of the federal Gas Tax Fund (GTF) has been delivered to the province, along with a top-up of $32.8 million, made available through Budget 2019. This top-up doubles the amount of money for Newfoundland and Labrador communities, based on their allocations for the 2018-19 GTF transfer, enabling them to carry out infrastructure projects that support the well-being of their residents.

The federal GTF is a long-term, indexed source of funding that supports a diverse range of local infrastructure projects across the province each year. For example, residents in the Town of Port au Port East are benefitting from a more reliable and consistent supply of clean drinking water thanks to vital upgrades that were carried out to the local water reservoir with federal GTF funding. In the Town of Lumsden, a tourist building which houses a museum, washroom, shower and laundry facilities at the municipally-owned RV park was constructed to enhance the tourism industry. And in the Town of Paradise, residents are enjoying the splash pad at Paradise Park this summer thanks in part to funding from the federal GTF.

This year, the Town of Paradise will receive a total of $924,523 for their annual allocation, and an additional $942,162 through the top-up.

This predictable funding, enhanced by a doubling of the 2018-19 GTF allocations, as announced in Budget 2019, is allowing communities to plan for current and future infrastructure priorities, so they can build the resilient infrastructure of the 21st century that residents deserve, and help ensure that Newfoundland and Labrador remains among the best places in the world to live.


“Our government is proud to deliver this stable, predictable long-term funding that communities rely on to develop their public infrastructure. By working with other orders of government, we are making significant progress and delivering concrete results for all Canadians. From improving roads, water services and energy efficiency, to enhancing recreation and tourism centres, the federal Gas Tax Fund is helping keep families safe, promote economic development and improve people’s quality of life across the country.”

The Honourable François-Philippe Champagne, Minister of Infrastructure and Communities

“Through the Gas Tax Fund, residents of municipalities and Inuit Community Governments will continue to benefit from infrastructure projects that will build safe and sustainable communities across Newfoundland and Labrador.”

The Honourable Lisa Dempster, Minister of Municipal Affairs and Environment, Newfoundland and Labrador

“Local governments know best what their communities need, and the Government of Canada is proud to deliver stable, long-term funding that they count on to develop their public infrastructure. By investing in Newfoundland and Labrador communities, the Government of Canada is helping to improve the province’s infrastructure and ensure that all residents have access to the opportunities they need to succeed.”

Ken McDonald, Member of Parliament for Avalon

“Since its inception, the Gas Tax Fund has been an important addition to the Town of Paradise’s funding and has helped us develop many community infrastructure projects, such as the Splash Pad in Paradise Park and numerous improvements to road networks. The increased funding the federal government has allocated will now provide further resources to all provincial municipalities, including Paradise. Improving infrastructure as our town continues to grow and prosper is a priority for Council and we are thankful for the additional commitment.”

His Worship Dan Bobbett, Mayor of the Town of Paradise

Quick facts

  • The federal Gas Tax Fund delivers over $2 billion every year to over 3,600 communities across the country. In recent years the funding has supported approximately 4,000 projects each year.

  • To help address the short-term infrastructure priorities of municipalities, local governments and Indigenous communities, Budget 2019 includes a top-up of $2.2 billion to the federal Gas Tax Fund. 

  • The federal Gas Tax Fund is flexible in allowing communities to apply funding to their most pressing local needs. Communities can invest across 18 different project categories, including recreation, water systems and roads. They can also use the funds immediately for priority projects, bank them for later use, pool the dollars with other communities for shared infrastructure projects, or use them to finance major infrastructure expenditures.

  • Through its Investing in Canada plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.

  • The plan includes more than $92 billion for funding such as the Gas Tax Fund and more than $95 billion in new funding for infrastructure programs. 

  • To date, more than 48,000 projects have been approved under the plan and the majority of these projects are either underway, or already completed.

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Ann-Clara Vaillancourt
Press Secretary
Office of the Minister of Infrastructure and Communities

Erin Shea
Director of Communications
Department of Municipal Affairs and Environment

Infrastructure Canada
Toll free: 1-877-250-7154
Twitter: @INFC_eng
Web: Infrastructure Canada

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