Building Canada's public transit future:
Healthy and sustainable modes of transportation for all

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Public engagement on permanent public transit funding in Canada

On July 25, 2023, the Government of Canada released the response to feedback received through national public engagement sessions on Canada's first permanent public transit fund of $3 billion annually starting in 2026-27, titled Permanent, Integrated, and Locally Responsive: New Foundations for Public Transit Funding in Canada.

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The Government of Canada is investing $14.9 billion over the next eight years in reliable, fast, affordable, and clean public transit. This funding includes $3 billion per year in permanent, predictable federal public transit funding which will be available to support transit solutions beginning in 2026/27.

From buses and subways, to maintained bicycle and walking trails, public transit and active transportation infrastructure helps Canadians get to where they need to go and stay connected to family and friends.

Our continued investments in Canada's public transit systems will help provide an essential service to many Canadians, generate billions in economic benefits, and help Canada meet its climate targets since the transportation sector accounts for approximately 25 percent of Canada's greenhouse gas emissions.

Public Transit Funding

Stable funding for public transit provides municipalities, transit authorities and other groups with the resources they need to plan over the long term and implement key public transit projects. Federal investments in public transit include the following application-based funds:

Rural Transit Solutions Fund

$250 million

This Fund supports locally-driven transit solutions for rural and remote communities, with flexibility for different local transit system innovations from fixed route to on-demand services to ride-shares.

Zero Emission Transit Fund

$2.75 billion

This Fund supports public transit and school bus operators plan for electrification, supports the purchase of 5,000 zero emission buses and build supporting infrastructure.

Active Transportation Fund

$400 million

This Fund invests in projects that build new and expanded networks of pathways, bike lanes, trails and pedestrian bridges, in addition to supporting active transportation planning activities.

Funding is also available to accelerate future major projects and supporting the expansion of large urban transit systems that many Canadians depend on every day.

These investments will accelerate projects across the country, create jobs, support active transportation, provide rural mobility solutions, and electrify our transit systems.

They also build on the largest Government of Canada investment in public transit in history which, since 2015, has provided more than $20 billion in federal funding to support public transit projects in communities across Canada.

Each 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.

Additional Resources

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