Canada is giving $691.9 million Canadian (US$708.6 million; 499.05 million EUR) to Via Rail to help refurbish passenger train service on its national system.
The announcement marks the first significant injection of new money to the government passenger rail corporation in years.
Finance Minister Jim Flaherty said the money will allow Via Rail to provide faster, cleaner and more reliable service across Canada.
Via receives about $170 million Canadian (US$174 million; 122.54 million EUR) in annual operating subsidies from the government.
Flaherty said the government is committed to preserving and expanding Via service across the country.
"By taking the train, people can bypass traffic congestion, they can save on the price of gas and reduce greenhouse gas emissions all at the same time," he said.
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