Prime Minister Stephen Harper is committing up to $95 million in federal funds to help decontaminate Lac-Megantic's water and soil.
Harper says the money is part of a 50-50 cost-shared agreement with Quebec.
The prime minister made the announcement in Lac-Megantic today accompanied by federal cabinet minister Christian Paradis and the town's mayor, Colette Roy-Laroche.
The federal government says Quebec has estimated the clean-up costs after last summer's deadly train derailment at $190 million.
A train carrying vast quantities of crude oil careened off the tracks last July, killing 47 people and destroying much of Lac-Megantic's downtown core.