Rural Transit Solutions Fund: Frequently asked questions

Applicants needs to provide sufficient information in their applications for Housing, Infrastructure and Communities Canada to review and assess the proposal based on the Rural Transit Solutions Fund’s merit criteria. The merit criteria are outlined in the applicant guides, located in the Applicant guides tab.

No. Any projects underway, expenditures incurred and contracts signed before receiving federal approval is not eligible for the Rural Transit Solutions Fund funding.

Under the Rural Transit Solutions Fund, Housing, Infrastructure and Communities Canada will directly fund projects for eligible recipients. Provinces and territories may apply for capital project contributions. They may also partner with other eligible recipients.

The Rural Transit Solutions Fund dedicates a minimum of 10% of its funding for First Nations, Inuit, Métis, and other non-status or non-affiliated groups and Indigenous organizations.

The allocation is influenced by the number of applications received, as well as the assessment of the applications based on the established merit criteria.

A tentative start date and timelines should be identified in your application. Any contracts signed before approval by the Minister of Infrastructure and Communities will not be eligible for a Rural Transit Solutions Fund grant (planning stream) or contribution (capital stream). Federal funding will be provided to the recipient only once a grant agreement (for planning projects) or a contribution agreement (for capital projects) is signed.

The Rural Transit Solutions Fund is intended to connect communities and support the day-to-day movement of local residents in communities to help them get to work, school, appointments and visit loved ones. It is not designed to support long-distance inter-regional travel routes that connect cities across regions, provinces, and territories.

Where there is no limit to the cost of a planning project, the total planning and design stream grants under the Rural Transit Solution Fund are limited to $50,000. Housing, Infrastructure and Communities Canada will not provide additional payment for costs overruns. Additionally, funding from all federal sources cannot surpass 100% for projected costs for planning projects.

Applicants will be informed if their projects have been successful and then will need to conclude a grant agreement with Housing, Infrastructure and Communities Canada. Contracts signed prior to the project approval would not be eligible for funding.

Yes. The grant agreement provided by Housing, Infrastructure and Communities Canada will require reporting elements including, but not limited to:

• Project targeted within the strategy
• Outreach to vulnerable populations during creation of strategy

No. Under the Rural Transit Solutions Fund, costs that are related to the ongoing operations, insurance, maintenance and/or electricity and fuel costs associated with the operations of capital assets are ineligible.

There is no limit to the cost of a capital project, however, the maximum contribution from the Rural Transit Solutions Fund is limited to $3 million for conventional solutions, or up to $5 million if the project incorporates zero-emission solutions. A contribution agreement will establish the federal contribution for each project as well as the conditions under which federal contribution installment payments will be made. Housing, Infrastructure and Communities Canada will not provide additional payment for costs overruns.

No. Applicants can apply to either stream – they are not obligated to apply for both. An applicant can still submit a Capital Projects stream application for the Rural Transit Solutions Fund without having submitted a Planning and Design Projects stream application.

Under the Rural Transit Solutions Fund, vehicles must be purchased and cannot be leased. The cost of renting or leasing a vehicle is considered an operational expense and is therefore ineligible. 

For an asset to be considered an eligible expense, it must be part of a transit system/solution. Applicants must explain how the fixed assets would directly link to the delivery of the proposed transit solution. Infrastructure that improves the quality of the service and the transit rider experience, such as bus stops, active transportation links that facilitate access to stops and user safety, are considered eligible. Purchasing a fixed asset like a charging station would be ineligible as a standalone project.

Housing, Infrastructure and Communities Canada understands that there are supply chain issues for vehicles. The Department will work with applicants to find options to how to minimize these impacts.

Yes. The contribution agreement provided by Housing, Infrastructure and Communities Canada will require reporting elements including, but not limited to;

• Project progress (including procurement activities)
• Confirmation of expected and actual project start/end dates
• Any changes to the project that would impact project outcomes
• General description of project's major achievements