The federal Gas Tax Fund (GTF) was first announced in the 2005 federal budget. It currently provides $2.1 billion annually to municipalities across the country – a stable and predictable source of funding to support investments in municipal infrastructure. The GTF’s flexibility and predictability allows municipalities to plan for the future and invest in projects that address local priorities.

The GTF was legislated as a permanent source of funding in 2011, and in 2013 it was indexed at two per cent per year, in $100 million increments.

The federal GTF and Toronto

In 2014, the City entered into an Administrative Agreement with the Government of Canada, the Province of Ontario and the Association of Municipalities of Ontario (AMO) that governs the flow of funds from 2014 to 2023. Canada transfers the GTF directly to Toronto in semi-annual instalments (July and November), after receiving Toronto’s annual report.

From 2005 to-2015, the City received more than $1.33 billion in GTF, which was directed to the Toronto Transit Commission to leverage more than $3.1 billion of investments in the City’s transit