Community Improvement Fund

Economic Action Plan 2013 proposes the Community Improvement Fund with funding of $32.2 billion over 10 years, consisting of an indexed Gas Tax Fund and the incremental GST Rebate for Municipalities to offer stable, predictable funding to support community infrastructure projects such as roads, public transit and recreational facilities.

Since 2006, the Government has provided increased infrastructure funding to municipalities. In Budget 2011, the Government committed to working with the provinces, territories and the Federation of Canadian Municipalities to develop a new long-term plan for infrastructure. In the consultations on the new plan, mayors from across the country and the Federation of Canadian Municipalities asked that federal funding for municipal projects be indexed and greater flexibility be afforded for municipalities to address their specific infrastructure needs.

The Government is responding to the requests from Canadas mayors and the Federation of Canadian Municipalities by introducing the Community Improvement Fund. The Community Improvement Fund provides funding for Canadian municipalities of $32.2 billion over the 10 years of the new Building Canada plan. Funding starts at approximately $2.9 billion in 2014-15 and increases to over $3.6 billion in 2023-24. The new Community Improvement Fund will afford municipalities greater flexibility to allocate federal support toward a broader range of infrastructure priorities.

The Community Improvement Fund includes:

  • $21.8 billion over 10 years through Gas Tax Fund payments. Currently $2 billion per year, it is proposed that these payments be indexed at 2 per cent per year, starting in 2014-15, with increases to be applied in $100-million increments. The Government will conclude new Gas Tax Fund agreements before the end of current agreements on March 31, 2014. The list of existing eligible investment categories will be expanded to include: highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, brownfield redevelopment, culture, tourism, sport, and recreation.
  • $10.4 billion over 10 years under the incremental GST Rebate for Municipalities to provide communities with additional resources to address their infrastructure priorities, from the construction of new infrastructure assets to the maintenance and operation of existing public infrastructure and facilities.

In Budget 2011, the federal government committed to legislating a permanent annual investment of $2 billion in municipal infrastructure through the Gas Tax Fund.

About the Program

The Gas Tax Fund supports environmentally sustainable municipal infrastructure projects that contribute to cleaner air, cleaner water and reduced greenhouse gas emissions. Municipalities can pool, bank and borrow against this funding, for significant additional financial flexibility.

Who Is Eligible

Every municipality in Canada receives a portion of the Gas Tax Fund.

How It Works

Funding is allocated on a per capita basis, though the allocation formula was modified slightly for the Northwest Territories, Yukon, Nunavut and Prince Edward Island. Funding is provided up front, twice a year, to provincial and territorial governments, the City of Toronto and a number of municipal associations. Projects are chosen at the local government level and are prioritized according to the infrastructure needs of each community.

Progress to Date

Through legislation passed in December 2011, the federal government has made this a permanent annual investment of $2 billion per year beyond 2014 to provide greater certainty for local infrastructure renewal. Municipalities across the country will continue to receive stable, annual funding for their long-term infrastructure priorities.

Find Out More

For more information, please visit the Infrastructure Canada website, contact Infrastructure Canada at or call the toll-free information line at 1-877-250-7154. Mailed inquiries should be addressed to Infrastructure Canada, 11th Floor – 180 Kent Street, Ottawa ON K1P 0B6. You can also follow the latest news about Infrastructure Canada by subscribing to the Web feed.

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