Prime Minister Justin Trudeau announced Monday the federal government is giving gas-tax payments to municipalities early this year.
He said $2.2 billion in expected infrastructure funding will be advanced to cities to ease cash-flow concerns. In a normal year, municipal governments would receive half of this money in the summertime and half in six months but the effects of the COVID-19 pandemic mean that isn’t reasonable, Trudeau said. “There is a need right now for liquidity, for support as they deal with this COVID crisis,” Trudeau said from his Ottawa residence.
The Federation of Canadian Municipalities (FCM) said the measure is modest and preliminary, in a Monday press release. “To be clear: this is not new money,” it said.