Government of Québec announces C$2.3 billion in financial assistance to help municipalities weather the pandemic

A total of C$2.3 billion (US$1.719 billion) in funding has been made available by the Québec government to help offset COVID-19-related revenue losses and expenditures for municipalities and public transit organizations.

Québec public transit organizations will share C$1.2 billion (US$896.310 million) in financial assistance. An initial C$800-million (US$597.7-million) instalment, which includes the C$400 million (US$298.770 million) already announced last June, will be paid this fall. Financial assistance totaling C$400 million (US$298.700 million) will then be granted in the first months of 2021.

"The Québec government was the first in Canada to announce assistance, totaling C$400 million, last June,” said François Bonnardel, Minister of Transport. “Today, we have enhanced the assistance to support public transit organizations to maintain the level of service that the public expects."

"The significant financial assistance announced today will afford the municipalities greater flexibility and predictability to avoid a heavier tax burden for individuals and businesses or reduced services," said Minister of Finance Eric Girard.

Québec municipalities will receive a total of C$800 million (US$597.7 million) to cover COVID-19-related additional costs and revenue losses. The financial assistance will offer the municipalities a lever to enable them to play an active role in economic recovery.

"Our government is offering the municipalities the necessary means to confront the pandemic and prepare to contribute actively to economic recovery in Québec's regions,” Andrée Laforest, Minister of Municipal Affairs and Housing. “They are indispensable stakeholders whose collaboration has been remarkable during the pandemic and they will be key partners in the recovery. Today's announcement is, therefore, good news for the municipalities, but also for all Quebecers."

A total of C$300 million (US$224.077 million) has been earmarked for possible needs arising from the second wave of COVID-19. Decisions concerning the allocation of the funds will be made in the winter of 2021.