TORONTO – The Canadian Urban Transit Association (CUTA) applauds the federal government’s launch of the Canada Public Transit Fund, which represents an average $3 billion per year in permanent, predictable federal public transit infrastructure funding. Transit agencies can now apply for two of the program’s three funding streams, with funding set to begin in 2026.

“CUTA has long championed the need for permanent federal funding, and today’s announcement marks a significant milestone in our efforts to secure reliable funding for transit infrastructure across Canada,” said Marco D’Angelo, President and CEO of CUTA. “The Canada Public Transit Fund represents a historic investment that will help transit agencies address critical infrastructure challenges, and support Canada’s economic, housing, social, and environmental goals.”

The program’s baseline stream, totalling roughly $500 million annually, will benefit most Canadian public transit agencies by supporting critical state-of-good-repair costs for transit infrastructure and other capital expenses, including fleet replacement. This stream will help maintain and improve the reliability and safety of transit infrastructure.

The program’s metro-region agreement stream, totalling roughly $2 billion annually, will support transit expansion projects in metropolitan regions through integrated regional plans. This stream aims to enhance transit connectivity, reduce congestion, and promote regional economic growth. It will also support accelerated housing construction, by connecting and integrating new housing developments with public transit infrastructure. A total of $20 million in funding has been allocated for 2024-25 and 2025-26 to metro regions for planning activities aimed at developing high-quality integrated regional plans.

The third stream of the program will provide targeted funding for key government priorities like active transportation, rural and remote transit, transit investments in Indigenous communities, and electrification. This funding will be delivered on a project-by-project basis. More information about the timing of this stream is still forthcoming from the federal government.

The fund is set to provide much-needed financial support to public transit agencies across Canada, addressing critical infrastructure needs and ensuring they can meet growing ridership demand.

Public transit is among the most affordable transportation options for Canadians. By investing in infrastructure and fleet replacement, the federal government is helping to keep transit costs more manageable for transit agencies and commuters alike, ensuring that transit remains an accessible option for all. In recent years, many transit agencies had to raise fares to manage growing fiscal pressures and increased service demands. With support for capital costs from the federal government, transit agencies will be on better financial footing meet service demands.

As Canada’s population continues to grow at a record pace, so does the demand for robust public transit. With Canada’s largest cities facing severe traffic congestion, the Canada Public Transit Fund will support congestion reduction and enhance economic productivity. In the greater Toronto area alone, it is estimated that $11 billion in productivity is lost each year due to extreme congestion.

Many of Canada’s transit systems are grappling with aging infrastructure that requires significant investment to maintain. The fund will help ensure that past investments in transit infrastructure are maintained and can continue to support Canada’s commuters.

CUTA remains committed to working with all levels of government to ensure that the Canada Public Transit Fund meets the needs of public transit agencies and the communities they serve. This announcement is a significant step forward in creating a sustainable and efficient transit network that supports Canada’s economic, social, and environmental goals.

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Media Contact:
Jon MacMull
Director, Communications and Public Affairs
Canadian Urban Transit Association (CUTA)
[email protected]
416-684-9808