Summary#
This bill authorizes the federal government to make one-time payments to provinces and territories and to fund provincial efforts on transit and housing. It amends the Federal-Provincial Fiscal Arrangements Act to add a fixed $2,000,000,000 transfer by jurisdiction and allows up to $750,000,000 more for provincial transit shortfalls and housing supply and affordability. The Minister of Finance sets the timing, amounts (for the $750 million), and any conditions for these payments (Bill, “Total payment of $2 billion”; Bill, “Payments in Relation to Transit and Housing,” s. 1(1)-(2)).
- One-time $2,000,000,000 payment to provinces and territories, with amounts set in the bill (Bill, “Total payment of $2 billion”).
- Up to $750,000,000 in additional payments to provinces for transit shortfalls/needs and housing supply/affordability (Bill, “Payments in Relation to Transit and Housing,” s. 1(1)).
- Minister of Finance controls allocation, timing, and terms for the $750,000,000 (Bill, s. 1(2)).
- Payments come from the Consolidated Revenue Fund; no offsets or repayments are specified (Bill, s. 1(2)).
What it means for you#
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Households and transit riders
- Provinces may receive funding aimed at municipal and other transit shortfalls and needs. This could help maintain service or avoid cuts, but the bill does not guarantee specific service levels or fare changes. Timing and amounts are not set (Bill, s. 1(1)-(2)).
- Housing supply or affordability programs could receive support through provincial initiatives. The bill does not set which programs will be funded or where (Bill, s. 1(1)).
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Renters and homebuyers
- Provinces can use part of the up to $750,000,000 to improve housing supply and affordability. The bill does not specify tools (for example, subsidies, planning supports, or builds). Results will vary by province (Bill, s. 1(1)).
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Provinces and territories
- Receive one-time payments totaling $2,000,000,000 as follows: ON $775,500,000; QC $450,006,000; BC $272,434,000; AB $232,332,000; MB $72,437,000; SK $61,759,000; NS $51,800,000; NB $41,238,000; NL $27,227,000; PE $8,574,000; YT $2,244,000; NT $2,387,000; NU $2,062,000 (Bill, “Total payment of $2 billion”).
- May receive additional payments (up to a combined $750,000,000 across all provinces) for transit and housing. Territories are not eligible for this $750,000,000 stream (Bill, s. 1(1)).
- Must accept any terms and conditions set by the Minister of Finance for the $750,000,000 payments; the bill does not set a formula (Bill, s. 1(2)).
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Municipalities and transit agencies
- No direct federal payments under this bill. Support would flow through provincial governments if provinces choose to pass funds on (Bill, s. 1(1)).
- Potential provincial conditions or reporting may apply; the federal bill leaves such details to the Minister and provinces (Bill, s. 1(2)).
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Timing
- Payments can be made after the bill becomes law. The Minister decides the timing and manner of the $750,000,000 payments (Bill, s. 1(2)). The $2,000,000,000 amounts are authorized as one-time payments (Bill, “Total payment of $2 billion”).
Expenses#
Estimated net cost: CAD $2.75 billion (one-time).
- Authorizes CAD $2,000,000,000 in fixed amounts to provinces and territories (Bill, “Total payment of $2 billion”).
- Authorizes up to CAD $750,000,000 in additional payments to provinces for transit and housing; exact allocation and timing are at the Minister’s discretion (Bill, s. 1(1)-(2)).
- Funding source: Consolidated Revenue Fund (Bill, s. 1(2)).
| Item | Amount | Frequency | Source |
|---|
| One-time payments to provinces/territories | CAD $2,000,000,000 | One-time | Bill, “Total payment of $2 billion” |
| Transit and housing payments to provinces (max) | CAD $750,000,000 | One-time (cap) | Bill, “Payments in Relation to Transit and Housing,” s. 1(1) |
| Total authorized (cap) | CAD $2,750,000,000 | One-time | Bill text |
Breakdown of the CAD $2,000,000,000 by jurisdiction:
| Jurisdiction | Amount | Source |
|---|
| Ontario | $775,500,000 | Bill, “Total payment of $2 billion” |
| Quebec | $450,006,000 | Bill, “Total payment of $2 billion” |
| British Columbia | $272,434,000 | Bill, “Total payment of $2 billion” |
| Alberta | $232,332,000 | Bill, “Total payment of $2 billion” |
| Manitoba | $72,437,000 | Bill, “Total payment of $2 billion” |
| Saskatchewan | $61,759,000 | Bill, “Total payment of $2 billion” |
| Nova Scotia | $51,800,000 | Bill, “Total payment of $2 billion” |
| New Brunswick | $41,238,000 | Bill, “Total payment of $2 billion” |
| Newfoundland and Labrador | $27,227,000 | Bill, “Total payment of $2 billion” |
| Prince Edward Island | $8,574,000 | Bill, “Total payment of $2 billion” |
| Yukon | $2,244,000 | Bill, “Total payment of $2 billion” |
| Northwest Territories | $2,387,000 | Bill, “Total payment of $2 billion” |
| Nunavut | $2,062,000 | Bill, “Total payment of $2 billion” |
Allocation details for the up to $750,000,000 transit/housing funding: Data unavailable (Minister sets amounts and terms) (Bill, s. 1(1)-(2)).
Proponents' View#
- Provides rapid, flexible support by authorizing direct payments from the Consolidated Revenue Fund, allowing the Minister to move funds when ready (Bill, s. 1(2)).
- Gives every province and territory a known one-time amount, which can help with short-term budget planning (Bill, “Total payment of $2 billion”).
- Targets current pressures by allowing funds for municipal and other transit shortfalls and needs, and for housing supply and affordability (Bill, s. 1(1)).
- Limits fiscal exposure with a clear cap of $750,000,000 for the transit and housing stream (Bill, s. 1(1)).
- Uses ministerial terms and conditions to focus dollars where needs are highest and to align with provincial plans (assumes effective use of discretion; outcomes depend on implementation) (Bill, s. 1(2)).
Opponents' View#
- Lacks transparency and predictability for the $750,000,000: no formula, no allocation by province, and no reporting requirements in the bill (Bill, s. 1(1)-(2)).
- Centralizes discretion in the Minister of Finance for timing, amounts, and conditions, which could lead to uneven or politicized distribution (Bill, s. 1(2)).
- Does not require provinces to pass funds to municipalities or transit agencies, so local transit relief is uncertain (Bill, s. 1(1)).
- One-time funding may not address ongoing transit operating gaps or long-term housing shortages; the bill sets no multi-year support (Bill text).
- Territories are excluded from the $750,000,000 transit/housing stream despite facing high costs and limited housing supply, raising equity concerns (Bill, s. 1(1)).