Feds free up billions for COVID-19 retrofits

The federal government is moving ahead with plans to make it easier for provinces and territories to spend billions of dollars on infrastructure projects to address the challenges posed by COVID-19.

Infrastructure Minister Catherine McKenna says $3.3 billion out of the $33 billion that Ottawa has previously promised in matching funds for provincial and territorial projects will be available for projects related to the pandemic.

Those projects include retrofits to public buildings such as schools and long-term care facilities, measures related to physical distancing such as new bike and walking paths and those designed to protect against floods and wildfires.

McKenna says the federal government plans to introduce a faster application process for provinces and territories to apply for federal funds, with Ottawa footing up to 80 per cent of the bills for approved projects.

The new approach comes as most provinces are looking at re-opening schools in the next month and trying to guard against new outbreaks of COVID-19 at nursing homes.

While the measure is expected to be welcomed by provinces and territories, each must sign an agreement with the federal government before it can apply for funding.