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

Heavy rain in Okanagan results in slowest start to fire season in four years

119 hectares of land burned so far this year, compared to 991 ha in 2019, and 3,835 ha in 2018

Dog rescued from rocky ledge in Summerland

Penticton Search and Rescue members perform high angle rescue

QUIZ: Put your knowledge of Canada to the test

How much do you know about our country?

Penticton Speedway prepares for first race of the year

Limited capacity and social distancing protocols in place after track closed for months

Locals vocal about proposed 300-plus home development in Naramata Bench

The developers, Canadian Horizons, will likely apply for land zoning in August or September

North Okanagan man gives back for Canada Day

Food packages given away to those living on the streets in Vernon

Tsilhqot’in Nation demands meeting with feds on declining Fraser River chinook stocks

The Nation wants to partner with DFO to rebuild and recover the stocks

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

Okanagan mine makes way for industrial project

Council holds a special meeting to rezone property

In photos and video: Colourful Canada Day parade rolls through Sicamous

Patriotic procession allows community to celebrate together while maintaining distance

Okanagan arsonist sentenced to 3 years probation

Arsonist must pay $500 to each party affected, no access to drugs, alcohol or fire starters

Northbound lane of Coquihalla closed after vehicle incident near Hope

A northbound lane is closed just north of the Great Bear Snowshed, according to DriveBC

Most Read