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Bloomberg
Prime minister Justin Trudeau is ready to announce financial support for Canadian municipalities whose revenues have plunged amid the Covid-19 lockdowns.
Trudeau was expected to announce C$2.2 billion ($1.6 billion) in funding on Monday, according to a government official familiar with the plans. The money — potentially only a first move to help cities — will come in the form of an advanced payment of the federal Gas Tax Fund, money provided to provinces who in turn use it to fund municipalities.
Providing support for public transit systems will be a priority for the government, as will other essential services such as trash collection, said the official, who spoke on condition of anonymity ahead of the announcement.
Since municipalities can’t run deficits on operating costs, the official said Ottawa would work with provincial governments to help inject cash. Towns and cities are a provincial jurisdiction in Canada so Trudeau has to walk a fine line in helping mayors without overstepping his government’s role.