Ottawa Cuts Confederation Bridge Toll to $20, Slashes Ferry Fares 50%: $28M Economic Boost for Atlantic Canada

July 28, 2025
2 mins read
Confederation Bridge during winter
Starting August 1, the federal government’s decision to cut the Confederation Bridge toll to $20 underscores Ottawa’s focus on reducing internal trade barriers and boosting Atlantic Canada’s economic resilience. Source: Quintin Soloviev (CC BY 4.0)

Prime Minister Mark Carney announced today that Ottawa will reduce the Confederation Bridge toll by more than half and cut Eastern Canada ferry fares by 50 percent, effective August 1, 2025.

Speaking in Prince Edward Island, Carney revealed that the toll for crossing the bridge will drop from $50.25 to $20 for two-axle vehicles. The federal government will also slash fares by half for passengers, vehicles, and commercial traffic on federally supported Eastern Canada ferry services while eliminating all fuel surcharges.

“By cutting tolls on the Confederation Bridge and fares on ferries in Atlantic Canada, Canadians and businesses will save millions of dollars,” Carney said during the announcement. “That means more travel and trade between provinces, a stronger, more united economy, and more prosperity and opportunity for Canadians.”

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The price reductions will apply to several key transportation routes. The Confederation Bridge, which handles approximately 90-95 percent of passenger and commercial traffic to and from Prince Edward Island, recorded 990,198 vehicles in 2024. The federally supported Eastern Canada Ferry Services include routes between Wood Islands, P.E.I. and Caribou, Nova Scotia; Saint John, New Brunswick and Digby, Nova Scotia; and Îles-de-la-Madeleine, Quebec and Souris, P.E.I.

Marine Atlantic, the constitutionally mandated ferry service connecting Nova Scotia and Newfoundland, will receive increased funding to reduce passenger and vehicle fares by 50 percent while freezing commercial freight rates. These services are critical for the region’s economy, with Marine Atlantic responsible for transporting nearly 65 percent of goods to and from Newfoundland, including approximately 90 percent of all perishables.

The reductions to Marine Atlantic fares alone are expected to inject over $28 million into Newfoundland and Labrador’s economy, according to federal projections.

Transport and Internal Trade Minister Chrystia Freeland framed the move as tackling long-standing internal trade barriers. “Internal trade barriers have held our country back for far too long. They’ve driven up the cost of doing business and created roadblocks for industry expansion nationwide,” Freeland stated. “To build a strong, dynamic economy, affordable and accessible transportation is key. Cutting fares and tolls will allow people to move around more easily, boosting interprovincial travel and tourism, supporting business growth, and strengthening cultural ties between our provinces and territories.”

The announcement delivers on a campaign promise made by Carney during the election campaign. On April 21, while visiting Prince Edward Island, Carney pledged to cut Confederation Bridge tolls by more than half and reduce ferry fares by at least 50 percent if elected.

For Marine Atlantic, this announcement follows the federal government’s elimination of the service’s cost-recovery policy in July 2024, which had previously required it to recover 65 percent of its operating expenses through revenue. This policy change enabled the ferry service to keep fares more affordable for residents, tourists, and businesses.

The Confederation Bridge, opened on May 31, 1997, spans 12.9 kilometers across the Northumberland Strait and is Canada’s longest bridge and the world’s longest bridge over ice-covered water. Its opening significantly improved connectivity for the island’s economy.

The toll and fare reductions are part of the government’s strategy to boost interprovincial mobility and reduce internal trade barriers. By making it more affordable to travel between provinces, officials expect increased regional traffic, tourism growth, and economic development throughout Atlantic Canada.

The changes take effect this Friday, August 1, 2025.

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