The Federal Gas Tax Fund

Federal Gas Tax Fund

On June 1, 2020, the Government of Canada announced that the allocation of $2.2 billion under the federal Gas Tax Fund would be accelerated this year and provided in a single payment in June to help Canadian communities recover from the COVID-19 pandemic as quickly as possible while respecting public health guidelines.

Learn more about how the federal Gas Tax Fund is working in your province or territory:

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

Under the agreement for the federal Gas Tax Fund, the provinces and territories are accountable for reporting to the federal government on the projects that were funded and the benefits that were achieved.

Learn more about GTF projects across Canada here:

Additional resources