The ACT will get $85.9 million from the federal government to help extend the light rail line from Alinga Street to Commonwealth Park.
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The funding is on top of the $132.5 million which had been allocated under the former Coalition government, taking the Commonwealth's contribution to Andrew Barr's signature project to $218.4 million.
The federal budget also revealed a new National Security Office Precinct and delivered funds to reopen the mothballed AIS Arena, in what Finance Minister and ACT senator Katy Gallagher is hailing as a "good story" for Canberra.
The Canberra Times understands the new funding, which is subject to agreement with the ACT government, is spread out over six financial years, starting with $15 million in 2024-25.
The funding announcement comes after Labor walked back a commitment, which former leader Bill Shorten took to the 2019 election, to invest $200 million in the project.
The federal budget does not include any funding for the project's so-called stage 2B, which will take the tram across Lake Burley Griffin to Woden.
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The cash for the Alinga Street to Commonwealth Park stretch is on top of a wider 10-year, $8.1 billion road and rail package.
The long-awaited reopening of the AIS Arena is one step closer after the budget delivered on Labor's promise to spend $15.1 million on much-needed upgrades to the mothballed stadium.
Some $11.6 million has been set aside across 2022-23 and 2023-24 for the works.
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The budget featured a $20 million local infrastructure package for Canberra, which included $5 million for an inner-north cycling route, $10 million toward the new CIT campus in Woden and $5 million to upgrade Gorman House.
A total of $750,000 will be spent on a business case to upgrade the University of Canberra's sporting facilities.
As expected, the budget didn't include funding for projects which former Liberal senator Zed Seselja promised during his failed election campaign, including $15 million to redevelop Viking Park as a 10,000-seat boutique stadium.
There was also no waiver of the ACT's $100 million historical housing debt, as Senator Gallagher confirmed earlier this month.
Dan Jervis-Bardy
Dan covers federal politics from Parliament House, with a special focus on climate policy and the NDIS. He has previously reported on ACT politics and urban affairs since joining the Canberra Times in 2018.
Dan covers federal politics from Parliament House, with a special focus on climate policy and the NDIS. He has previously reported on ACT politics and urban affairs since joining the Canberra Times in 2018.
