.
In the year 1864, interests in a federal system were renewed. The redefinition of the government structure was in question, and the majority were in favour of Galt's federal union. A committee was organized to examine a restructuring of the government which although Galt opposed, found himself a member of. On June 14th, 1864, the committee reported to the house the majority favoured the federal union. On the same day, the Etienne-Paschal Tache government fell due to an assorted measure with Galt's previous financing costs reaching due payments. Although a catastrophe for the cabinet, resolution would be completed in an unexpected manner. It ended a political truce and the formation of a coalition government including Brown, Tache, Macdonald, Cartier, and Galt was fashioned. This new coalition was committed to present the plans for a federal union encompassing the other British North American colonies.
In late 1864, Galt was in the delegation of ministers who were to attend a meeting at Charlottetown with the heads of the Maritime Provinces. The purpose of the conference was to discuss a legislative union of Nova Scotia, New Brunswick, and Prince Edward Island. Alexander Galt was faced with the task of persuading the conference members as to how prospective a federation would benefit them financially. At the following conference in Quebec, the organization of a federal state was indicated, resembling Galt's previous arrangement. Galt is credited with conquering the impasse surrounding the size of subsidies that the central governments would have to grant the provincial governments. By proposing to assume the provincial debts, and the allocation of a sum per each inhabitant, the Maritime Provinces agreed to grant the central government the power to levy indirect taxes. Aside from this, Galt also helped secure the inclusion of the Quebec resolutions which protected the existing rights of religious minorities in regard to education privileges.