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Federal government increases infrastructure project funding for Canada’s small communities

Roadwork contunues on the road to Morrell. Guardian photo
Canadian communities with less than 5,000 residents will now be eligible to receive 60 per cent of cost-shared municipal projects submitted under the rural and northern infrastructure stream from the federal government, including road upgrades. - File photo

OTTAWA – An announcement by Infrastructure and Communities Minister Amarjeet Sohi on Friday will mean more money for small towns in Newfoundland and Labrador.

The federal government is raising the maximum contribution it will make for eligible infrastructure projects in communities with less than 5,000 residents, Sohi said.

The change could benefit over 3,000 municipalities across the country, according to a news release from Infrastructure Canada.

The communities will now be eligible to receive 60 per cent of cost-shared municipal projects submitted under the rural and northern infrastructure stream from the federal government instead of 50 per cent.

That includes projects such as facilities that support food security, local roads, renewable energy and enhanced broadband connectivity.

Indigenous communities, meanwhile, will be eligible for a federal cost share of up to 75 per cent.

All communities in the three territories will remain eligible for a federal cost share of up to 75 per cent, the release stated.

The funding will be made available through new bilateral agreements presently being negotiated between Infrastructure Canada and the provinces and territories individually as part of the Investing in Canada plan.

The agreements are expected to be signed by this spring.

"By increasing the federal cost-share for smaller communities, we will support the unique and wide-ranging infrastructure priorities of small, rural and remote communities,” Infrastructure and Communities Minister Amarjeet Sohi said.

“Through the Government of Canada's Investing in Canada plan, we will invest more than $180 billion in infrastructure over 12 years in communities across Canada.”

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