The money matches a request by a national umbrella group, Fierte Canada Pride, which will distribute it to local committees that apply.
The funding can be used for expenses such as vehicle and crowd control, barricades, fees for paid-duty police or private security.
Organizations supporting gender and sexual minorities across Canada have ramped up their security after a documented rise in hate crimes targeting LGBTQ2 people, and physical confrontations between protesters at drag-queen events.
Gender Equality Minister Marci Ien says the funding comes at a time when LGBTQ2 people need tangible support from politicians instead of empty words and platitudes.
She also is challenging Conservative Leader Pierre Poilievre to attend the raising of a Pride flag on Parliament Hill this month.
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