This month, the Government of Canada delivered the first of two annual $22 million federal Gas Tax Fund (GTF) installments to New Brunswick. In total, the province will be provided with over $45 million this year through the fund. From that, over $35.8 million will be distributed to local governments on a per capita basis while the rest will be allocated in unincorporated areas. The funding, which flows through the provincial government, is now available to support community infrastructure projects.
Based on previous years, the GTF supports approximately 85 local infrastructure projects across New Brunswick each year.
Projects being funded this year include a new community centre in the Rural Community of Hanwell, important road repair work in the Village of Memramcook and a new drinking water reservoir in the City of Edmundston. The range of planned projects demonstrates the flexibility the GTF provides.
The two Gas Tax Fund installments for this year are in addition to funds flowing to New Brunswick under the Investing in Canada plan.
- Since the program was first introduced in 2005, over $473 million has been provided to New Brunswick communities through the federal Gas Tax Fund.
- The federal Gas Tax Fund makes over $2 billion available each year, and through it provides each community across Canada with a permanent, predictable and indexed source of long-term funding. The funding is made available in two annual installments, one in July and one by the end of March..
- The federal Gas Tax Fund offers significant flexibility. Local communities can make strategic investments across 18 different project categories, including roads and bridges, public transit, drinking water and wastewater infrastructure, and recreational facilities. Communities can use the funds immediately for priority projects, bank the funds for later use, pool the dollars with other communities for shared infrastructure projects or use it to finance major infrastructure expenditures.
- The Government of Canada will invest 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.