Canadian goverment to provide ongoing support for public transit
Ensured that it will be an equal-funding partner in major transit projects by committing itself to a federal contribution limit of 33% for the Public Transit Fund. Also announced was a subsequent increase in the contribution limit to the P3 Canada Fund from 25% to 33%.
The Canadian federal government ensured that it will be an equal-funding partner in major transit projects by committing itself to a federal contribution limit of 33% for the Public Transit Fund (PTF). Also announced was a subsequent increase in the contribution limit to the P3 Canada Fund from 25% to 33%.
The one-third model of infrastructure investment, which sees equal cost-share from federal, provincial and municipal governments, has been a framework that the Canadian Urban Transit Association (CUTA) has advocated for publicly and in consultation with government.
Ad Loading...
The government also announced $2.6 billion in funding for Toronto's SmartTrack Regional Rail Express Line, conditional on the project's application approval.
"The new Public Transit Fund has the potential to create legacy transit infrastructure in Canadian cities. We look forward to continuing to advise and provide information to the government about Canada's growing transit industry as this new fund takes effect," said CUTA’s President/CEO Patrick Leclerc.
As the PTF will be administered by P3 Canada, projects receiving funding will include private sector involvement, through private-sector financing and alternative-funding mechanisms.
The PTF will fund projects with an estimated cost of over $1 billion based on merit. CUTA is hopeful that small- and medium-sized transit projects will now receive increased funding through the New Building Canada Fund as major transit projects will be applying for funding through the PTF.
The region’s fixed-route system finished out the year with a total of 373.5 million rides. Adding 12.3 million rides over 2024 represents an increase that is equal to the annual transit ridership of Kansas City.
The service is a flexible, reservation-based transit service designed to close the first- and last-mile gaps and connect riders to employment for just $5 per day.
The upgraded system, which went live earlier this month, supports METRO’s METRONow vision to enhance the customer experience, improve service reliability, and strengthen long-term regional mobility.
The agreement provides competitive wages and reflects strong labor-management collaboration, positive working relationships, and a shared commitment to building a world-class transit system for the community, said RTA CEO Lona Edwards Hankins.
The priorities are outlined in the 2026 Board and CEO Initiatives and Action Plan, which serves as a roadmap to guide the agency’s work throughout the year and ensure continued progress and accountability on voter-approved transportation investments and essential mobility services.
