How Municipalities Got The Federal Gas Tax Fund
About this episode
The episode explores the history and impact of the federal Gas Tax Fund on Canadian municipalities.
For communities across Canada, reliable infrastructure isn’t just a priority—it’s essential. And for more than two decades, one federal program has quietly helped make that possible. The federal Gas Tax Fund—now known as the Canada Community-Building Fund—delivers over $2 billion every year to more than 3,600 municipalities, supporting roughly 4,000 infrastructure projects annually. From public transit and roads to clean water and community spaces, it provides predictable, long-term funding that communities can count on. What makes this fund unique is its flexibility. Municipalities can pool, bank, and even borrow against it—empowering local governments to plan ahead and invest in the priorities that matter most to their residents. Originally launched in 2005 as a five-year, $5 billion initiative, the program has since grown into a permanent and indexed funding stream, delivering more than $26 billion between 2014 and 2024 alone. It’s become the backbone of federal infrastructure support for communities of all sizes. But how did it all begin? How did a task force under former Prime Minister Jean Chrétien evolve into one of the most impactful municipal funding models in the…
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