This morning, the Prime Minister announced the launch of the Canada Public Transit Fund. This is a new $30 billion investment over the first ten years – an average of $3 billion per year starting in 2026-2027 – to expand public transit and make it more accessible across the country.
This is the largest public transit investment in Canadian history and will meet the needs of communities of all sizes – from large metropolitan areas to mid-size and smaller communities, including rural, remote, northern, and Indigenous communities.
The Canada Public Transit Fund will support transit and active transportation investments in three ways:
Metro Region Agreements (MRA) offer a new way for the federal government, provinces, and municipalities to collaborate. These agreements will support the long-term development of public transit infrastructure in large urban areas. Through these agreements, the federal government will allocate funding and work with our partners to support the planning and construction of public transit. This funding is about promoting liveable communities with accessible public transit and attainable housing.
Baseline Funding will provide stable, predictable support that communities with existing transit systems across Canada are seeking for routine capital investments, expansion, and state of good repair projects.
Targeted Funding will support specific public transit projects, including active transportation, rural and remote transit, transit solutions in Indigenous communities, as well as electrifying public transit and school transportation. Targeted funding will be delivered through periodic calls for applications that will enable the government to adapt to evolving priorities and community needs.
While funding will begin to flow in 2026, the federal government is accepting Expression of Interest submissions for the Metro-Region Agreements and Baseline Funding streams now, so that we can provide our transit partners – provinces, municipalities, and transit agencies – with the funding certainty they need to advance their projects. This will lead to transit deals across the country starting this year.
The Canada Public Transit Fund will also complement our work to build more homes. To access long-term, predictable funding through this program, municipalities will need to take actions that directly unlock housing supply. This includes:
- Eliminating all mandatory minimum parking requirements within 800 metres of a high-frequency transit line.
- Allowing high-density housing within 800 metres of a high-frequency transit line.
- Allowing high-density housing within 800 metres of post-secondary institutions.
Completing a Housing Needs Assessment for all communities with a population greater than 30,000
For more information please see links below
