Rural Transit Solutions Fund: Overview

The Rural Transit Solutions Fund seeks to help Canadians living in rural and remote areas get around their communities more easily for their day-to-day activities, and connect with other communities nearby.

People living in rural, remote, Northern, and Indigenous communities often depend on private vehicles for transportation and often lack access to transit options. Additionally, people without access to private vehicles or who are unable to drive are isolated from essential services or are unable to travel with ease within their own community or to visit nearby communities.

The Rural Transit Solutions Fund is the first federal fund to target the development of transit solutions in rural and remote communities. Launched in 2021, the Fund supports the development of locally-driven transit solutions that will help people living in rural communities get to work, school, appointments, and to visit loved ones.

From on-demand services, to publicly-owned ride shares, and volunteer community car-pooling, funding will help rural, remote, Northern, and Indigenous communities to develop and offer new public transit options to their residents. Eligible organizations representing these communities can seek support through two program streams depending on the nature of their project:

• Planning and Design Projects stream: Through this stream, eligible applicants can seek grants of up to $50,000 in support of communities' projects to plan and design new or expanded transit solutions for their communities.
• Capital Projects stream: Through this stream, eligible applicants can seek contributions of up to $3 million to help cover the capital costs of a new or expanded transit solution (e.g., purchase of vehicles or digital platforms), and up to $5 million to support zero-emission transit solutions (e.g., for the purchase of a zero-emission vehicles).

The Rural Transit Solutions Fund also supports reconciliation by helping to improve the safety of Indigenous women, girls, and two-spirited individuals who live in rural and remote areas by helping to establish safe and secure transit systems in their communities. Further, a minimum of 10% of the funding available under the Rural Transit Solutions Fund is allocated to Indigenous projects being led by and for Indigenous populations and communities.