Canada Public Transit Fund to invest C$30 billion in public transit during next decade

A new funding stream to support public transit operators in Canada was officially launched on July 17, according to the office of the Prime Minister of Canada Justin Trudeau. The Canada Public Transit Fund will invest C$30 billion (US$21.9 billion) during the next 10 years to expand public transit and make it more accessible across the country. This is the largest public transit investment in Canadian history.

The permanent ongoing program will invest an average of C$3 billion (US$2.2. billion) per year to help cities and communities deliver better public transit systems for Canadians.

Funding will be delivered across three streams:

1. Metro-Region Agreements will provide C$2 billion (US$1.5 billion) per year to support partnerships between provinces and large urban areas with the largest public transit systems, to build the public transit networks, including regions such as the Greater Toronto Area and other metropolitan areas like Vancouver, B.C., Winnipeg, Manitoba, Calgary, Alberta, Montréal, Quebec, and Halifax, Nova Scotia, among others. Funding amounts will be based on merit, with the highest amounts of funding going to the most ambitious partnerships, including those that can best demonstrate how investments in transit will help build more homes. 
• To access funding under the Metro-Region Agreements stream, local governments and transit agencies will have to work in partnership with their provincial government to develop and share Integrated Regional Plans.  
• A total of C$20 million (US$14.6 million) in funding has been made available, for 2024-25 and 2025-26, to Metro regions for planning activities that will support the development of high-quality Integrated Regional Plans.
2. Baseline Funding will provide C$500 million (US$365.4 million) per year to communities across the country with existing transit systems, based on their population and ridership, which will help communities of all sizes upgrade, replace or modernize their transit infrastructure, including system expansion, lifecycle extension, performance upgrades and investments in the state of good repair of their fleets.
3. Targeted Funding will provide C$500 million (US$365.4 million) to support key priorities such as active transportation, rural and remote transit, transit investments in Indigenous communities and the electrification of public transit and school transportation. This funding will be delivered on a project-by-project basis through periodic calls for applications so the government of Canada can respond to the evolving transit needs of communities in the future.

To access long-term, predictable funding through the program, municipalities will need to take actions that directly unlock housing supply, as the Canada Public Transit Fund will also work to build homes faster. This includes measures to:

• Eliminate all mandatory minimum parking requirements within 800 meters (0.50 miles) of a high-frequency transit line.
• Allow high-density housing within 800 meters (0.50 miles) of a high-frequency transit line.
• Allow high-density housing within 800 meters (0.50 miles) of post-secondary institutions.
• Complete a housing needs assessment for all communities with a population greater than 30,000  

“We’re making the largest public transit investment in Canadian history. Our government’s new Canada Public Transit Fund will invest C$30 billion (US$21.9 billion) in community infrastructure to expand, improve and modernize public transit – giving Canadians affordable options to get around and making sure housing development is linked to that funding. Let’s make public transit better, faster and easier to use,” Trudeau said.

“Investing in public transit is essential to ensuring Canada’s economy reaches its full potential. Better transit makes it quicker and more affordable for Canadians to get to where they need to go, all while reducing emissions. Our new C$30 billion (US$21,9 billion) Canada Public Transit Fund is a generational investment to build better communities and public transit across the country,” said Chrystia Freeland, Canada’s deputy prime minister and minister of finance.

The design of the Canada Public Transit Fund was guided by key findings resulting from a national public engagement process launched in 2022.

The Canada Public Transit Fund builds on the success of the three existing transit funds:  

1. Rural Transit Solutions Fund
2.  Zero Emission Transit Fund  
3. Active Transportation Fund

Funding delivered through the Canada Public Transit Fund will help Canada meet its target of net zero by reducing emissions in the transportation sector, which currently accounts for approximately 22 percent of Canada’s greenhouse gas emissions.

Since 2015, the government of Canada has committed more than C$30 billion (US$21.9 billion) in more than 1,800 transit projects across Canada, providing Canadians with cleaner and more efficient commuting options. The investments are helping to build more than 350 kilometers (217.5 miles) of new public transit subway and light-rail lines, purchase more than 3,360 zero-emission buses and create almost 1,175 kilometers (730.1 miles) of active transportation trails, bike lanes, pedestrian lanes and recreational paths.

“Public transit is an invaluable tool in making people’s lives more affordable, tackling climate change, and better connecting communities. We are excited and proud to launch the Canada Public Transit Fund today and with it, to bring a new approach to transit funding in this country. This fund not only gives us an innovative way of working with partners on transit and active transportation projects, but will also go a long way in our work to help build more homes,” said Sean Fraser, Canada’s minister of housing, infrastructure and communities.