OTTAWA – The Federal government missed an opportunity to support Canadian communities and improve affordability in budget 2024. Calls by the Canadian Urban Transit Association (CUTA) and Canada’s transit agencies for accelerated funding for public transit infrastructure and enhanced safety measures went unanswered.

The federal government is waiting until 2026 to introduce the much-needed permanent public transit fund. CUTA urged the government to introduce a component of the fund in the 2024 budget and open intake and funding commitments for the remainder of the fund. CUTA underscores the urgent needs facing Canada’s transit agencies as they contend with aging infrastructure and rising demand spurred on by Canada’s rapidly rising population.

Investments in housing are needed, but the government’s ambitious housing plan has not yet addressed the need for public transit services to connect new housing. Public transit infrastructure plays a pivotal role in supporting Canada’s growing communities. Leaving urgently needed transit investment out of budget 2024 can lead to adverse and far-reaching effects on mobility and affordability.

Public transit systems collectively faced unfunded operational shortfalls estimated at over three quarters of a billion dollars in 2023 that threaten their ability to serve communities effectively. Without government support, transit systems risk service cuts or fare increases at a time when affordability is a chief concern. Communities across Canada risk heightened road congestion, commuter dissatisfaction, and less frequent and reliable transit services.

“Budget 2024’s goal was to provide affordability and fairness for every generation.” said Marco D’Angelo, CUTA President and CEO. “Unfortunately, the budget does not address the needs of young people, seniors and families who can not afford to buy a car and rely on public transit every day. Robust public transit systems are needed to meet Canada’s affordability and climate goals.”

This news comes after the federal Transportation Minister noted in late March that the government may decide to advance the permanent public transit fund due to urgent needs facing transit agencies.

Funding for transit safety and security on transit was also missing from the budget. 2023 saw an increase in incidents of violence and social disorder on transit, impacting transit workers and riders alike. In response, CUTA urged the federal government to establish a transit safety and security fund to help transit agencies with specific expenditures needed to prevent, combat, and respond to safety and security incidents on their systems. Transit agencies need urgent support for staffing, training, station enhancements, public awareness campaigns and other safety and security measures.

The budget document noted some positive developments for public transit. CUTA welcomes the government’s intention to renew the Clean Technology Manufacturing Tax Credit and introduce a new 10 per cent Electric Vehicle Supply Chain Investment Tax Credit. This has the potential to help Canadian bus manufacturers maintain and grow manufacturing capacity and support highly skilled jobs.

Additionally, CUTA welcomes the government’s investment in Via Rail operations and infrastructure. This includes $462 million over five years for VIA Rail network operations, as well as new funding to replace aging fleet on routes outside the Quebec City-Windsor corridor. The government also called for $63 million over three years to renew the Remote Passenger Rail Program, which supports Indigenous-owned rail operators providing services to communities in Manitoba, Quebec, and Labrador. Budget 2024 also proposes $371 million over six years for VIA’s High Frequency Rail project.

-30-

Media Contact:
Jon MacMull
Director, Communications and Public Affairs
Canadian Urban Transit Association
[email protected]