More than $8B will flow to province over the next 10 years
Federal Finance Minister Joe Oliver joined Toronto Mayor Rob Ford to mark the 10-year extension of the agreement.
Oliver says by enshrining the commitments in legislation, municipalities are ensured an ongoing source of funding for their infrastructure priorities.
He says the government has also doubled the number of eligible investment categories so municipalities can apply their gas tax money to a wider variety of projects.
Ford, who did not stay at the announcement to take questions, spoke of how gas tax money has been used for transit infrastructure in Toronto, including helping increase the system's fleet size.
Ford, who has been a vocal proponent of subways, touted improvements to the trains, planned subway extensions, new buses and accessible transit options but did not mention new streetcars, which are due to be rolled out starting in August.