The 2025 federal budget represents a setback for public transit in Canada. While it announces the creation of the new Building Communities Strong Fund (BCSF), a broad infrastructure program valued at $51 billion over ten years, the government has chosen to redirect previously earmarked transit funding from the Canada Public Transit Fund (CPTF) into this larger, multi-purpose framework.

This decision erodes the stable and predictable federal funding that Canada’s transit systems, manufacturers, and municipalities have long been counting on to address urgent state of good repair needs and plan for future transit expansion. Under the CPTF, transit was to receive $3 billion annually beginning in 2026 through dedicated, long-term capital funding. The new BCSF repurposes an unknown amount of CPTF funds toward broader infrastructure priorities. Clarity is needed on how much funding will be removed from the CPTF.

“The federal government has taken funding that was meant to strengthen and stabilize transit systems and folded it into a wider program without clear assurances that those dollars will still reach transit,” said Marco D’Angelo, President and CEO of CUTA. “This change undermines the very predictability and reliability that the CPTF was designed to deliver. Further clarity is needed from the government on what commitments they will be providing the transit industry under this new fund.”

Transit is the nation-building infrastructure of this generation. Every dollar invested in public transit creates $2.40 in total economic activity and generates an additional dollar in GDP through wages, taxes, and business spending. Each $1 million invested supports 15 jobs in construction, manufacturing, and technology development.

Predictable federal investment is critical to maintaining service levels, renewing fleets, and sustaining Canada’s transit vehicle manufacturing sector. Without dedicated, stable funding for transit, the rollout of new buses, trains, and maintenance facilities will be at risk, along with the stability of the supply chain that supports thousands of Canadian jobs. Stable funding enables vehicle manufacturers and suppliers to plan and scale production to meet demand. The alternative – funding that arrives in fits and starts – creates a boom-and-bust cycle that leads to manufacturing delays, higher costs, and capacity challenges across the industry.

While the government has indicated that part of the CPTF will remain intact, the removal or repurposing of its other components represents a step backward from the certainty the sector urgently needs.

“As Canada faces economic headwinds, the answer should be reinforcing the foundation of stable transit funding,” D’Angelo added. “Communities, workers, and manufacturers need the confidence that comes with a predictable, long-term federal commitment to public transit.”

CUTA welcomes the federal government’s commitment to remove barriers and reduce red tape within the CPTF, reflecting recommendations from CUTA. Faster approvals will help get transit funding deployed more quickly and accelerate shovel-ready projects. However, this progress on efficiency must not come at the expense of the overall funding envelope for stable and predictable transit investment.

CUTA stands ready to work with the federal government to ensure that transit continues to receive strong, sustained investment within the CPTF and the new BCSF framework. Transit projects that will strengthen communities, reduce emissions, and power the economic productivity of Canada’s cities are ready to move forward. What’s needed now is predictable, long-term federal investment to unlock delivery. Canada’s transit systems are ready to build.

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Media Contact:
Jon MacMull
Canadian Urban Transit Association (CUTA)
Email: [email protected]
Phone: 647-215-7555