Question Period Note: Support for Transit

What is the Government of Canada doing to support transit across the country?

• The Government of Canada works with all levels of government and partners to support public transit and active transportation networks, creating jobs and making communities cleaner, more accessible, sustainable, and livable for everyone.

• In July 2024, the Prime Minister announced a historic investment in public transit. The Canada Public Transit Fund (CPTF) is a long-term, predictable, and flexible program that builds on the success of the Permanent Public Transit Program launched in 2021. Starting in 2026, the CPTF will invest, on average, $3 billion per year to deliver better public transit systems.

• Since 2015, the Government of Canada has announced more than $30 billion for over 2,000 public transit and active transportation projects across the country. With these substantial investments, the federal government is strengthening public transit across this country.

• The Canada Public Transit Fund (CPTF) was launched in July 2024 and will provide an average of $3 billion per year for public transit and active transportation infrastructure, beginning in 2026-27. Building on the Permanent Public Transit Program, launched in 2021, it supports the expansion of public transit systems and active transportation networks across Canada.

• To access long-term, predictable funding for public transit through the CPTF, municipalities are required to take action to directly unlock housing supply. This includes measures to:

  • Eliminate all mandatory minimum parking requirements within 800 metres of a high-frequency transit line.
  • Allow high-density housing within 800 metres of a high-frequency transit line.
  • Allow high-density housing within 800 metres of post-secondary institution.
  • Complete a Housing Needs Assessment for all communities with a population greater than 30,000.

• The new fund will be delivered across three streams: Metro-Region Agreements, Baseline Funding, and Targeted Funding. The Metro-Region Agreements and Baseline Funding streams will enable long-term planning that links transit investments and actions to increased housing supply and affordability.

• Expressions of Interest (EOI) are required for Baseline and Metro-Region funding and are now being accepted. For Baseline funding, EOIs have been received from across the country and Housing, Infrastructure and Communities Canada (HICC) will begin reviewing capital plan applications in early fall 2024 and throughout 2025 as applications are received.

• For Metro-Region funding, HICC continues to engage with municipalities, transit agencies, and metro-regions throughout Canada. HICC has already engaged with the Canadian Urban Transit Association and its membership. The first EOIs for Metro-Region funding are expected to be received in fall 2024, with the negotiation and signing of the first agreements targeted for spring 2025.

• The Targeted Funding stream will continue to support projects that were approved under the existing funds:

  • The Zero Emission Transit Fund (ZETF): ZETF is advancing the Government of Canada’s commitment to help procure zero emission public transit and school buses across Canada. ZETF investments are closely coordinated with the Canada Infrastructure Bank’s commitment to invest in zero emission buses as part of its Growth Plan. The program is currently open for applications on an ongoing basis.
  • The Active Transportation Fund (ATF): ATF aims to expand and enhance active transportation networks in communities of all types and sizes, while also supporting Canada’s National Active Transportation Strategy. It does so by supporting planning for, and the deployment of a wide range of walking, cycling, and other active mobility infrastructure. The intakes are closed and most of the funding has been allocated.
  • The Rural Transit Solutions Fund (RTSF): RTSF addresses unique challenges in rural communities by supporting planning and deployment of locally tailored transit solutions in rural communities, including support to assess the viability of new approaches to mobility. Rolling intake of the Capital stream was open from January 2023 to February 28, 2024; and the Planning stream intake launched in December 2023 remains open.

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

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