Federal, Ontario Liberals sign $1.49B transit funding agreement

The federal government has cracked open its cofferswith$1.49 billion in new transit infrastructure money for everything from new transit vehicles to upgraded stations.

• Federal transit infrastructure money: What Toronto is getting

The money is part of the first phase of a $60-billion infrastructure funding plan to pay for projects nationwide over the next 10 years.

The details were announced Tuesday morning by Prime Minister Justin Trudeau and Ontario Premier Kathleen Wynneat a municipal transit garage in Barrie, Ont.

The money will cover$688 millionworth of projects in five Ontario cities lined up to be thefirst recipients of the dedicated transit funding.

The federal funds can be used against up to half the costs ofeligible projects; the funding is retroactive to April 1 to coverany costs cities and provinces have incurred since then.

A complete list of the projects approved so far is here.

About $500 million of the projects announced this morningwillbe in Toronto, with Ottawa next on the list at $156 million.

Waterloo, Barrie and Sudbury, where the federal cabinet justwrapped up a two-day retreat, will receive about $30.6 millioncombined for 20 projects.

In Torontothe money will go toward fixing up bridges, a subway yard upgrade and replacing a fire main at Wilson Yard along withupgrades to buses and streetcars.

Trudeau said the money willbenefit"not just people here in Barrie, but all across the province."

"This willshorten commute times and make transit more efficient and inclusive," he said.

Wynne praised the Trudeaugovernment for choosing to work with the province in deciding where the money will go. For most projects, the province will pick uphalf of the cost not covered by Ottawa.

"We know there is an enormous amount more to do," she said. "But I can tell you, having a federal government makes a huge difference."

Money spread across the province

Federal cabinet ministers are also making announcements Tuesdayas the Trudeau government seeks to capitalize politically on thelong-awaited deal. Newly minted House leader Bardish Chagger will bein Waterloo, Environment Minister Catherine McKenna in Ottawa andFinance Minister Bill Morneau in Toronto, the city that's getting
most of the funding destined for Ontario.

The federal Liberals are betting that the $6.6 billion set asidethis year and next for infrastructure work the first infusion of apromised extra $60 billion over 10 years will help kick-start theeconomy and pad government coffers with new tax revenue that willhelp bring the budget back to balance.

The federal government has also been pushing to spend the moneyquickly so as not to miss the summer construction season, but hasbeen stymied by provincial delays in finalizing funding wish lists,including Ontario. Under the new federal program, provinces arerequired to fill half of their funding wish lists before Ottawa canbegin distributing the money.

An Ontario government source with knowledge of the deal beingannounced said the province is using a streamlined funding processto get money to municipalities as soon as possible.

Federal officials say Ontario has yet to finalize a funding wishlist of water and wastewater projects, something that it must doover the coming months to get $570 million for projects like watertreatment facility upgrades and sewers. Similar work is ongoing inBritish Columbia, which like Ontario signed a transit fundingdeal first, given the volume of outstanding work required.

The infrastructure money this year and next is focused onrepairing Canada'a aging water and public transit infrastructure, aswell as for smaller projects that can be completed by 2019.

There is also money available for planning larger projects thatare to be the focus of the second and more lucrative phase of theLiberal infrastructure program.