The Globe and Mail has reported that federal and provincial governments and the City of Toronto have come to terms over various funding issues. That means that the City will likely receive $350 million that the federal government announced in March 2004 on the 50th anniversary of the Yonge subway line.

Federal Infrastructure Minister Lawrence Cannon is ready to make an official submission to the Treasury Board next month and the Board will likely release the funds shortly afterward.

The federal government witheld the funding until the City and province resolved a disagreement about how much the City pays for GO Transit. That dispute concerned the federal government because it felt that the less the City paid for GO the more it would have to.