Canada Secures $2.2 Billion for Public Transit Improvements

Providing $2.2 billion over 10 years will modernize infrastructure, boost housing supply, and cut greenhouse gas emissions.

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In a significant move to enhance public transit and foster sustainable urban development, the Canadian federal government has announced an investment of more than $222 million annually for Ontario communities through the Canada Public Transit Fund (CPTF). Over the next decade, this initiative will allocate more than $2.2 billion to 42 municipalities and transit authorities across the province, aiming to upgrade and modernize transit infrastructure while integrating it with housing and environmental objectives.

Ensuring Long-Term and Predictable Funding

The CPTF’s Baseline Funding Stream ensures stable and predictable financial support for transit systems, offering communities a reliable foundation to plan long-term projects. Funding allocations are determined by population size and transit ridership, allowing for targeted improvements that meet local needs. Investments are tied to key objectives, such as fostering transit-oriented development, increasing housing affordability, and reducing greenhouse gas emissions.

Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities:

“These investments will have a direct impact on building high-quality, affordable public transit systems. This new long-term funding will make a big difference, connecting Canadians to jobs, services, and their communities.”

Transformative Impact on Communities

The CPTF is the largest public transit investment in Canadian history and seeks to address the needs of communities of all sizes. Starting in 2026, the program will deliver an average of $3 billion annually across Canada, ensuring access to public transit for rural, remote, and Indigenous communities in addition to large urban centers.

The fund is structured into three streams:

  1. Metro-Region Agreements: Facilitating collaboration between federal, provincial, and municipal governments to support urban transit planning and construction.
  2. Baseline Funding: Offering stable financial support for routine capital upgrades and maintenance.
  3. Targeted Funding: Supporting specific projects such as electrifying transit fleets, improving rural transit systems, and integrating active transportation solutions.

These investments will improve transit infrastructure and address critical issues such as climate resilience, social inclusion, and housing affordability.

Supporting Sustainability and Housing

The fund’s dual focus on transit and housing demonstrates the federal government’s commitment to creating sustainable, transit-oriented communities. By integrating transit planning with housing development, the CPTF will help increase the housing supply near transit hubs, reduce commute times, and lower transportation-related emissions.

Since 2015, the federal government has invested over $30 billion in transit and active transportation, resulting in nearly 2,000 projects across Canada. This ongoing commitment positions the CPTF as a pivotal tool in advancing Canada’s climate and housing goals while promoting equitable access to public transit.

Environment + Energy Leader