The source of our funds
Find out where the Rail Fund gets the money to pay compensation.
Where does the money for the Rail Fund come from?
Crude oil shippers finance the Rail Fund through a levy. This levy is a fee imposed on each tonne of crude oil shipped by rail.
The federally regulated railway companies that transport the shipment of crude oil collect and transfer these amounts to the Rail Fund.
- This levy applies only to federally regulated railways. In reality, only a few carry crude oil in Canada.
If there is a major rail accident, the money is available to:
- compensate victims for damages and losses
- compensate those involved in responding or cleaning up
- protect taxpayers
Is there a maximum amount the Rail Fund can pay to claimants?
In the event of a disaster, the Rail Fund is available to pay for all remaining eligible claims. If our balance is exhausted, the Minister of Finance can provide additional money from Canada’s Consolidated Revenue Funds.
How much is the levy on railway companies?
As of April 1, 2025, the levy is $2.12 per tonne of crude oil.
- This amount is adjusted annually based on inflation and the Consumer Price Index.
- The amount is set by the Minister of Transport, who is also able to raise, lower, or discontinue the levy.
When do the railway companies pay the levy?
Railway companies must pay it on a quarterly basis every calendar year.
To learn more about how the levy is paid, visit Transport Canada.
How much is added to the Rail Fund each year?
In addition to the amounts from the levies, the Rail Fund continues to grow from both the levy and interest.
The polluter pays principle
A railway company involved in a major rail accident is responsible for damages and losses. Fault or negligence does not have to be proven.
If more than one railway company is involved in an accident, they all have to pay compensation.
The Rail Fund is available to pay for all remaining eligible claims, while protecting taxpayers from the costs.
