Canada Public Transit Fund

On this page

• About the Canada Public Transit Fund
• Building complete and transit-oriented communities
• Program details
• Investments to date
• Frequently asked questions
• Additional resources

About the Canada Public Transit Fund

Canadians rely on public transit to go to school, to get to work, to see their friends, and to explore their communities. From buses and subways to bicycle lanes and walking trails, public transit and active transportation infrastructure helps Canadians get to where they need to go and stay connected.

The Canada Public Transit Fund is a historic investment that will support transit in communities of all sizes across Canada. Announced in 2024, the Fund will provide $3 billion per year for public transit and active transportation infrastructure, beginning in 2026-27. The Fund will provide stable and predictable funding to address long-term transit goals and aims to:

• Increase the use of public transit and active transportation relative to car travel
• Increase the housing supply and affordability as part of complete, transit-oriented communities
• Help mitigate climate change and improve climate resilience
• Improve public transit and active transportation options for all, especially Indigenous People and equity-deserving groups.

The Canada Public Transit Fund was designed in part from the feedback received from the national engagement process that was launched in 2022. For a comprehensive list of key findings, please refer to the report titled Permanent, Integrated, and Locally Responsive: New Foundations for Public Transit Funding in Canada.

Public transit funding also complements Canada's strengthened climate plan: A Healthy Environment and a Healthy Economy. The plan commits the federal government to provide permanent federal funding for public transit in support of making clean and affordable transportation available in communities across Canada.

Building complete and transit-oriented communities

More homes need to be built closer to the services that Canadians depend on, like public transit. In Budget 2024, the Government of Canada announced that communities seeking to access funding through the Canada Public Transit Fund will be required to take actions that directly unlock housing supply where it is needed most.

More details are available as part of the program guide for each stream.

These changes will enable more people to live near public transit to access important services and opportunities in their communities and will allow home construction to happen faster and at more affordable prices.

Program details

The Canada Public Transit Fund is designed to meet the unique needs of communities of all sizes, from large metropolitan areas, to mid-size and smaller communities, including rural, remote, northern and Indigenous communities. The Fund will deliver stable funding for public transit providing municipalities, transit authorities and other groups with the resources they need to plan and implement key public transit projects over the long-term. Funding will be delivered through:

Housing, Infrastructure and Communities Canada will continue to support projects that were approved under the Active Transportation Fund, Rural Transit Solutions Fund and Zero Emission Transit Fund.

Investments to date

The Canada Public Transit Fund builds on the largest Government of Canada investment in public transit in history. Since 2015, the federal government has provided more than $30 billion in federal funding to support over 2,000 public transit projects in communities across Canada.

In 2021, the Government of Canada announced significant public transit funding that includes billions in support for zero emission buses, rural transit services, active transportation, and support to accelerate the expansion of large urban transit systems that many Canadians depend on every day.

Our continued investments in Canada's public transit systems provides an essential service to many Canadians, generates billions in economic benefits, and helps Canada meet its climate targets.

See other public transit investments on our Housing and Infrastructure Project Map.

Frequently asked questions

• How will the Canada Public Transit Fund help support an increase in housing supply?

  Public transit plays a key role in creating sustainable, inclusive and prosperous communities across Canada. The creation of dense, transit-oriented, complete communities can improve housing supply and affordability and address population growth pressures. The Fund will catalyze housing outcomes such as increased supply and complement other existing federal housing initiatives, such as the Housing Accelerator Fund (HAF).

• How is the Canada Public Transit Fund going to make transit support more stable and predictable for communities in need?

  The foundation for successful public transit systems is reliable funding. The Canada Public Transit Fundis a historic investment in transit as Canada's first permanent public transit fund. The Canada Public Transit Fundwill provide reliable capital funding to build new transit infrastructure and provide stable funding to maintain existing transit systems and meet life-cycle costs.

• Who was consulted in the design of this program?

  Following the Prime Minister's announcement in February 2021 that the Government of Canada would permanently fund public transit, the Government of Canada launched an engagement paper and questionnaire on Canada's first permanent public transit fund. The Government of Canada held 75 multi-stakeholder roundtables and bilateral meetings with our transit partners and received 71 written submissions and 391 questionnaire responses. Through these conversations with provinces, territories, municipalities, Indigenous communities, transit agencies, industry partners, independent experts, and transit and active transportation advocates, we gathered a pan-Canadian perspective that was united on the importance of stable and predictable public transit funding.

  The report Permanent, Integrated, and Locally Responsive: New Foundations for Public Transit Funding in Canada, is available online.

• Can a potential applicant seek funding through multiple streams (Metro-Region Agreements/Baseline Agreements and Targeted Funding)?

  Yes, potential applicants can seek funding through multiple streams. Note that regions in a Metro-Region Agreement cannot seek funding through, or participate in, another Metro-Region Agreement.

• How will the Canada Public Transit Fund impact transit funding for rural and Indigenous communities?

  Addressing the transit needs of rural and Indigenous communities continues to be a priority for the government. Under Canada Public Transit Fund, targeted funding will enable rural and Indigenous communities to seek funding in support of active and transit projects.

• What will happen to applications which are currently under review under existing streams of the Permanent Public Transit Fund?

  Applicants will be informed of outstanding funding decisions under the Permanent Public Transit Program in the coming months. Unsuccessful applicants will be invited to consider future funding opportunities under new Canada Public Transit Fund components.

Additional resources

For additional background information regarding Government of Canada investments in public transit infrastructure, please consult:

• Prime Minister's transit announcement: The largest public transit investment in Canada history
• Backgrounder: Federal government launches the Canada Public Transit Fund, investing in public transit needs across Canada
• Investing in Canada plan funding stream: Public transit infrastructure
• Canada Infrastructure Bank
• Canada's National Active Transportation Strategy