Binns lodged his complaint at a campaign rally in Charlottetown for Conservative Leader Stephen Harper.
"The most important agreement that I've signed in nine years with Ottawa has suddenly gone out the window and that's upsetting," Binns said. "It is a breaking of a trust that we had and I didn't expect that from this government."
Binns said the federal Liberals quietly changed the rules governing equalization just before the federal election call in order to gain votes in Quebec. Quebec will get $380 million more, while P.E.I. will lose $7 million.
In November, Finance Minister Ralph Goodale announced that the equalization formula agreed to at the 2004 first ministers meeting had been extended and "updated to include more recent economic and fiscal information."
P.E.I. Treasurer Mitch Murphy said it was an obvious overture to Quebec voters.
"We're all familiar with the situation in the province of Quebec. So all of a sudden changes are made to channel an additional $380 million under equalization," Murphy said. "I think the public can come to their own conclusions based on those facts."
Prince Edward Island is the only province that will lose a significant amount of money under the changes.
Harper told the Conservative rally in Charlottetown that a government under his watch would never tamper with signed equalization deals.
The Conservatives hold seven of the 30 seats across Atlantic Canada. All four P.E.I. MPs are Liberals.
