Rural Transit Solutions Fund: Capital Projects Stream

On this page

• Who can apply?
• What types of projects can receive funding under the Capital Projects stream?
• Key dates and deadlines

Who can apply?

To be eligible for the Rural Transit Solutions Fund, applicants must be a legal entity capable of entering into legally binding agreements, be in good standing with the Government of Canada, and fall into one of the following categories:

1. A provincial or territorial government;
2. A municipal or regional government created by or under provincial or territorial statute;
3. A public sector body created by or under provincial or territorial statute or by regulation or is wholly-owned by a province, territory, municipal or regional government. This includes but is not limited to:
   1. Municipally-owned corporations (e.g., autonomous organizations owned by municipalities that provide local public services);
   2. Provincial or territorial organization delivering municipal services (e.g., public utilities, community health services, economic development agencies); and,
   3. Any other form of local governance outside traditional municipalities (e.g., local service districts).
4. A federally or provincially incorporated not-for-profit organization or charity;
5. An Indigenous benefiting organization or recipient, including:
   1. A band council as defined in section 2 of the Indian Act;
   2. A First Nation, Inuit or Métis government or authority established pursuant to a Self-Government Agreement or a Comprehensive Land Claim Agreement with Canada, which has been ratified by federal legislation;
   3. A First Nation, Inuit or Métis government created by federal, provincial, or territorial legislation that includes a governance structure.
6. A federally or provincially incorporated not-for-profit organization whose primary purpose is to improve Indigenous outcomes; and,
7. An Indigenous development corporation.

The following entities are not eligible to apply:

1. Individuals and private citizens;
2. Federal entities, including federal Crown corporations; and,
3. Private sector entities.

Not sure if your organization is eligible?

Contact us.

What types of projects can receive funding under the Capital Projects stream?

Eligible organizations with at least two years of transit experience, including local governments working in partnership with experienced transit organizations, or a completed public transit feasibility study (dated after January 1, 2020) can apply for a federal contribution of up to $10 million. Organizations with less than two years of experience and no recent feasibility study may still qualify for up to $250,000 in federal funding.

The Rural Transit Solutions Fund, under the Canada Public Transit Fund, supports the development and expansion of locally driven transit solutions, by helping residents of rural, remote, Indigenous and Northern communities conduct their day-to-day activities, like access services, go to work, school, medical appointments, and visit loved ones.

Housing, Infrastructure and Communities Canada recognizes the diversity of Canada's rural and remote communities and their unique transit needs. The Rural Transit Solutions Fund supports a range of public transit models including fixed-routes, on demand transit and micromobility services, such as e-bikes.

To be eligible under the Rural Transit Solutions Fund, your project must meet at least one of the following objectives:

1. Increase use of public transit relative to car travel
2. Contribute to climate change mitigation and resilience
3. Improve public transit options for all, especially equity-deserving groups

For applicants serving an area with a population greater than 50,000:

The Rural Transit Solutions Fund supports transit projects in rural and smaller communities, including smaller towns and villages within Census Metropolitan Areas (CMA), if the project targets rural needs and meet the objectives of the Fund. Applicants serving communities with populations between 50,000 and 150,000 must demonstrate how their project specifically targets their rural population.

Projects from applicants serving a population greater than 150,000 living mainly in the urban area of a CMA, are outside the scope of the Rural Transit Solutions Fund.

For more information, please refer to the Application and Step-by-Step guides located in the Applicant guides tab.

Maximum funding allocations for capital projects are as follows:

Eligible organization	Maximum Rural Transit Solutions Fund contribution (% of capital eligible expenses)
Recipient is located in the Territories Recipient is an Indigenous community/organization Territorial Governments	Up to 100%
Recipient is located in a province	Up to 80%
Provincial government or provincial crown corporation	Up to 60%

Key dates and deadlines

The application period for the Capital Projects Stream is now open. Applications must be submitted via Housing, Infrastructure and Communities Canada's online applicant portal by Tuesday, March 4, 2025 (3:00 p.m. EST) and Tuesday, April 8, 2025 (3:00 p.m. EST) from Indigenous applicants For updates regarding the Rural Transit Solutions Fund, please visit our website regularly and/or subscribe to our mailing list.

During intake periods, Housing, Infrastructure and Communities Canada offers regular webinars to update stakeholders on funding opportunities available through the Rural Transit Solutions Fund's Capital Stream and to address any questions. For details or to register for an upcoming session, please visit the Webinars page.