The federal government will be rushing to provide $2.2 billion in funding to Canada’s struggling municipalities, Prime Minister Justin Trudeau announced on Monday.
The Prime Minister unveiled that these funds would be sent through the yearly gas-tax fund months sooner than originally scheduled, in an ongoing effort to aid municipalities.
“Normally, municipalities receive these payments in two instalments, but we know that cities and towns need this money right away as they deal with COVID-19,” Trudeau said during his daily address.
According to the Prime Minister, the federal government will be fast-tracking the funds, and the 2020-2021 payments to be available for those that need it immediately.
Many municipalities have seen a steep decline in revenue due to the COVID-19 pandemic as fewer people are paying into programs that keep them afloat, such as public transit and recreation centres.
“This is support to keep Canadians safe and our communities strong,” said Trudeau.
“It’s support that will give businesses the confidence to reopen, getting hard-working Canadians back on the job.”
These funds are meant to help create jobs and jump start local economies, according to the Prime Minister.
Despite the announcement, the $2.2 billion is much less than municipalities say they will need, as the Federation of Canadian Municipalities appealed for at least $10 billion in emergency funding.
In response, Trudeau says there’s more aid to come.
“In the days and weeks to come, we will keep working with the provinces and territories on this and on a whole range of other measures.”
Further support to municipalities requires more time and planning, Trudeau added during Monday’s daily address.
“We will do more, but doing more needs to happen hand-in-hand with the provinces, who have jurisdiction over the municipalities,” said Trudeau.
