Trudeau Announces Historic $30 Billion Investment in Public Transit Infrastructure

Toronto, ON — The federal government, under the leadership of Prime Minister Justin Trudeau, has launched the Canada Public Transit Fund, marking the largest public transit investment in Canadian history. This new $30 billion initiative, spread over the next ten years, aims to transform public transit systems across the country, making them more accessible, efficient, and sustainable.

Key Objectives of the Canada Public Transit Fund:

1. Enhance Connectivity and Accessibility: The fund will invest an average of $3 billion annually to improve public transit networks, ensuring that Canadians, especially Millennials and Gen Z, have affordable and reliable transportation options.
2. Support Economic Growth: By linking communities and reducing commute times, the investment aims to stimulate economic growth and job creation.
3. Reduce Emissions: Investing in public transit infrastructure is a key component of the government’s strategy to lower carbon emissions and combat climate change.

Funding Allocation Streams:

• Metro-Region Agreements: Targeted at partnerships between provinces and large urban areas with substantial transit systems. This includes the Greater Toronto Area, Vancouver, Montréal, Calgary, and more. The funding will support ambitious projects that demonstrate significant potential for community connectivity and housing development.
• Baseline Funding: Designed for communities with existing transit systems, this funding will be based on population and ridership. It will assist in system upgrades, expansions, and modernization efforts.
• Targeted Funding: Focused on specific priorities such as active transportation, rural and remote transit, Indigenous community transit investments, and the electrification of public and school transportation systems. This funding will be allocated on a project-by-project basis.

Implementation Timeline:

• Funding will commence in 2026, with applications for Metro-Region Agreements and Baseline Funding opening immediately to provide transit agencies and municipalities with the financial certainty needed for project planning and execution.

Integration with Housing Development:

• The Canada Public Transit Fund will complement housing initiatives such as the Housing Accelerator Fund. Municipalities seeking federal funding must adapt zoning by-laws to facilitate housing developments near transit hubs. This includes:
  • Eliminating mandatory minimum parking requirements within 800 meters of high-frequency transit lines.
  • Allowing high-density housing within 800 meters of transit lines and post-secondary institutions.
  • Conducting housing needs assessments for communities with populations over 30,000.

This initiative underscores the federal government’s commitment to building connected, affordable, and sustainable communities. By cutting red tape and fostering infrastructure modernization, the Canada Public Transit Fund aims to deliver economic growth, environmental sustainability, and a higher quality of life for Canadians now and for generations to come.