Can we use gas tax funds for projects receiving funding from other federal infrastructure programs?
Yes, under certain circumstances. Some federal infrastructure programs have rules regarding federal contribution limits, known as “stacking” rules. These rules set the maximum dollar contribution to a project from any federal funding source, regardless of the project cost-sharing approved under the infrastructure project agreement. Gas tax funds from Canada are considered a federal funding source, therefore, you should make sure you are in compliance with the stacking rules under the federal infrastructure program. For example, the Municipal Rural Infrastructure Fund (MRIF) stipulates that the maximum federal contribution to a project is 50% of the total project costs. If a municipality is approved for $150,000 under MRIF cost-shared on a 1/3rd basis ($50,000 federal / $50,000 provincial / $50,000 municipal) and chooses to use some of its gas tax dollars towards the project, they could only use up to $25,000 in gas tax funds. This would increase the contribution from federal sources to
