Ontario Doubles Transit Funding to Support Rural and Underserved Communities
Ontario Transit Investment Fund Funding Increase Expands Rural and Community Transit Services
LONDON, ON — The Ontario government is doubling funding for the Ontario Transit Investment Fund (OTIF) as part of its 2026 Budget, committing $30 million over three years to expand transit services in rural and underserved communities across the province.
The annual funding for OTIF will increase from $5 million to $10 million, supporting new and expanded transit options such as bus routes, on-demand rideshare services and door-to-door transportation programs.
Expanding Access to Jobs and Essential Services
Provincial officials say the investment is aimed at improving mobility, connecting residents to jobs and essential services, and supporting economic growth in communities where transit options are limited.
“Our government is making historic investments to expand public transit and improve access to essential services like health care for people in rural and underserved communities,” said Transportation Minister Prabmeet Sarkaria. “This investment will ensure that Ontarians, no matter where they live, have access to reliable transportation options for years to come.”
Pleased to be in Middlesex County today to announce that we’re doubling funding for the Ontario Transit Investment Fund through the 2026 Budget to help smaller, rural and underserved communities expand safe and reliable transit.
This new investment builds on our government’s… pic.twitter.com/7eXBZ42tHT
— Prabmeet Sarkaria (@PrabSarkaria) April 1, 2026
Supporting Community-Led Transit Solutions
The OTIF program provides funding to municipalities, Indigenous communities and non-profit organizations to develop and operate transit services tailored to local needs. Eligible projects can receive time-limited funding for up to five years.
The initiative focuses on addressing transportation gaps in areas that are currently unserved or underserved, helping to build more integrated and sustainable transit networks.
Finance Minister Peter Bethlenfalvy said the investment aligns with Ontario’s broader economic strategy.
“Doubling the Ontario Transit Investment Fund will help pave the way for long-term economic growth in rural and underserved communities, connecting more people to jobs and housing,” he said.
Strengthening Rural and Northern Connectivity
Leaders from across the province say reliable transit is essential for supporting workforce participation, access to healthcare and overall quality of life in smaller communities.
The funding also complements other provincial programs, including the Gas Tax program, the Connecting Links program, and the Indigenous Transportation Initiatives Fund, which support transportation infrastructure and services across Ontario.
Municipal officials and industry groups welcomed the announcement, highlighting the role of transit in economic development and community connectivity.
Building a More Connected Ontario
Since its launch in 2024, OTIF has supported projects designed to improve transit accessibility and reliability. The expanded funding is expected to build on that progress as more communities seek solutions to transportation challenges.
The province says the investment is part of its long-term plan to create a competitive, resilient and self-reliant economy, particularly in the face of population growth and changing labour market demands.
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