CUTA Urges Federal Government to Strengthen Funding for Canada’s Transit Future
For immediate release
OTTAWA (September 16, 2025) — The Canadian Urban Transit Association (CUTA) is urging the federal government to expand and sustain investment in public transit, warning that aging fleets and growing infrastructure gaps threaten the reliability and affordability of systems across the country.
At a press conference on Parliament Hill this morning, CUTA President and CEO Marco D’Angelo and CUTA Chair Dave Reage urged the government to ensure that the Canada Public Transit Fund (CPTF), launching in 2026, is designed and funded to succeed.
“Transit is not just a service, it is nation building infrastructure,” said D’Angelo. “Like the railways and highways that connected earlier generations, today’s transit systems will connect the next generation of housing, jobs, and economic opportunity. This is our chance to build a more sustainable, more affordable, and more competitive Canada.”
The CPTF will provide $3 billion annually in stable funding for public transit infrastructure. However, CUTA warned that the way the fund is currently structured could delay urgent projects, with the bulk of dollars locked in complex Metro-Region agreements while only a smaller Baseline Funding stream is immediately accessible. That stream must be expanded to meet Canada’s urgent infrastructure needs and to align with the Prime Minister’s goal of rapid nation-building infrastructure development.
Across Canada, the average bus is now 9.5 years old, up from 8.3 just a few years ago, and some vehicles are nearly 20 years old. Over $9.5 billion in transit assets are already in poor condition, requiring up to $20 billion in capital just to restore them.
“The challenges are real, but they are solvable, if we act now,” said Reage. “We need to ensure this Fund works for all communities and that it delivers funding fast enough to meet the needs of today’s commuters and tomorrow’s growth.”
CUTA’s key recommendations to strengthen the Canada Public Transit Fund include:
- Doubling the Baseline Funding stream from $500 million to $1 billion annually to accelerate shovel-ready projects.
- Legislating the CPTF and adding a 5% annual funding escalator to protect its value against rising costs, with bus prices up more than 22% since 2020.
- Using the Fund’s Targeted Funding stream to renew Canada’s aging fleets with flexibility on propulsion type (electric, hybrid, or diesel) based on local readiness.
- Cutting red tape in the Metro-Region stream and expanding eligibility so small and rural systems can access funding.
CUTA also recommends amending the Criminal Code to strengthen penalties for assaults on transit workers and extending protections to all frontline staff.
“Every dollar invested in public transit generates $2.40 in economic activity and adds $1 to Canada’s GDP,” said D’Angelo. “Transit is how we will unlock housing supply, strengthen labour markets, reduce congestion, and cut emissions, all at once. With the CPTF set to launch in 2026, decisions made today will determine whether Canadians have reliable, affordable transit tomorrow. The time to act is now.”
CUTA is meeting with federal representatives on September 16 and will continue these discussions at its Policy Forum on September 17 at the Lord Elgin Hotel in Ottawa from 8:00 a.m. to 3:00 p.m. Media are invited to join transit leaders, industry experts, and decision-makers from across the country to take a deeper dive on the policies that will shape the future of public transit in Canada.
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Media contact:
Jon MacMull
Canadian Urban Transit Association
[email protected]
647-215-7555