Prime Minister Justin Trudeau speaks during a news conference outside Rideau Cottage in Ottawa, Friday May 29, 2020. THE CANADIAN PRESS/Adrian Wyld

Feds to fast-track $2.2B in funding for municipalities struggling amid pandemic

Funding would usually be doled out in two payments

The federal government is fast-tracking the entire 2020/2021 amount of federal support for municipalities, Prime Minister Justin Trudeau said during an address from Rideau Cottage on Monday (June 1).

The full $2.2 billion will come through the gas-tax fund to help cities whose budgets have been decimated amid the COVID-19 crisis. Trudeau said it was important to get the funding out now as municipalities struggle to gather revenue to provide liquidity right now.

“We need to do more and we will do more,” Trudeau promised.

Monday’s announcement falls short of the money asked for by the Federation of Canadian Municipalities.

“We are calling for a federal operating infusion of $10–15 billion over the next six months,” the organization said in a report released this spring. The report stated that property tax and utility bill deferrals, as well as a lack of transit fare revenue and a drop-off in tourism revenue have left Canada’s municipalities in a rough spot.

Trudeau said he was “very concerned” about how municipalities would handle paying for necessary services like transit, police and firefighting, but that provinces would have to work together with Ottawa. The feds have not offered help for transit in Canadian cities.

ALSO READ: Minimum wage goes up June 1 in B.C. as businesses face COVID-19 challenges

More to come.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Lower Similkameen Indian Band closes beach near Cawston to non-band members

The COVID-19 crisis “has not gone away” and “remains an ever present threat” says the LSIB

Morning Start: Dogs can smell cancer

Your morning start for Tuesday, July 7, 2020

In photos: Penticton Speedway celebrates opening weekend

Despite having to turn away roughly 700 cars, organizers celebrating a successful weekend of racing

RCMP investigate bear spray assault outside Penticton pub

Two patrons assaulted with bear spray outside Nanaimo Avenue pub

Coalmont woman airlifted after ATV crash

Off-road vehicle swerved to miss oncoming traffic

Horrifying video shows near head-on collision on Trans Canada

The video was captured on dash cam along Highway 1

Budget officer pegs cost of basic income as calls for it grow due to COVID-19

Planned federal spending to date on pandemic-related aid now tops about $174 billion

Sexologist likens face mask debate to condom debate: What can we learn from it?

Society’s approach to condom usage since the 1980s can be applied to face masks today, one expert says

Okanagan home destroyed by fire

Call came in from Teresa Road in Lake Country just after 6 a.m. Tuesday, July 7

B.C. homeowners plead for action on condo insurance crisis

Strata property fees growing bigger than mortgage payments

Security camera captures woman stealing package from Westbank doorstep

Sharon Utton posted a video of the incident to Facebook shortly after it happened on Saturday, July 4

Indigenous man behind complaint of BC Transplant’s alcohol abstinence policy has died

David Dennis, who is Nuu-chah-nulth, argued that six-month sobriety policy is a ‘lethal form of racism’

Most Read