Graphic of houses, people and streets

The federal Gas Tax Fund is a permanent source of funding for municipal infrastructure that contributes to the national objectives of increased productivity and economic growth, cleaner environment, and stronger cities and communities. 

Stable and Predictable: The Federal Gas Tax Fund

The federal Gas Tax Fund (GTF) currently transfers $2 billion per year in federal funding to Canadian municipalities. It is a permanent, predictable and stable source of funding for municipal infrastructure.

The Fund will provide Ontario municipalities with $3 billion from 2014-2018.

Municipal Infrastructure Needs

Much of Ontario’s infrastructure was first built in the 1950s and 1960s and now requires modern upgrades or replacement. Population growth and other pressures also fuel the demand for new investment. AMO has estimated that Ontario’s municipal governments need to invest an additional $6.9 billion each year for the next ten years to meet local infrastructure needs.

A Unique Program

The federal Gas Tax Fund is the only program that transfers money directly from the federal government to Ontario’s municipal governments. In Ontario, the Association of Municipalities of Ontario (AMO) transfers Gas Tax funds to all municipalities, except the City of Toronto. Funds are distributed twice annually on a per capita basis, without the need for an application form, enabling municipal governments to fund local priority projects and plan for the long term.

Investments are possible in 16 categories of infrastructure or in capacity building projects that help municipalities plan for the long-term. This ensures that federal funding can address the diverse needs found in all of Ontario’s municipalities.

Outcomes Focused

Canada’s Gas Tax Fund provides results. Since its launch in 2005, 443 municipalities across Ontario have invested more than $4.3 billion of funding into 6,693 projects worth $12 billion. Federal Gas Tax investment in Ontario plays a critical role in improving local quality of life by helping municipalities maintain, rehabilitate and build local infrastructure that meets local need.

Renewal of AMO’s Agreement with the Government of Canada

AMO has signed an Agreement with the federal and provincial governments and the City of Toronto to extend the Gas Tax Fund to 2023. AMO will continue to administer funding for all Ontario municipalities (except the City of Toronto). The Gas Tax Fund has been made permanent in federal legislation, and the new Agreement builds on its strengths with expanded eligible project categories and indexation which will grow municipal allocations in 2016 and 2018.