Federal Government announces $2.2B advance to help municipalities affected by COVID-19

Prime Minister Justin Trudeau announced a $2.2B aid package to help cities and municipalities.

“We know how important our cities and towns are to the success of Canadians and the success of our countries economy,” said Trudeau during his daily media briefing today.

The aid will come via an advance that cities receive through the Federal Gas Tax Fund. This is a fund that municipalities receive twice a year but the federal government is making the 2020/21 payment in full.

Municipalities have been asking for $10-15B to help them offset negative affects of COVID-19 layoffs, property tax, and other shortfalls like transit and road projects. However, Trudeau said today that the Federal Gas Tax Fund advance is just the first step in helping the cities but says he needs to discuss with provincial governments to decide what happens next.

CHCH News will be following this story and will have more on the Evening News at 6:00 p.m.

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