Question Period Note: Support for Transit

What is the government doing to support transit across the country?

• Federal transit funding supports public transit systems and active transportation networks, creates jobs, and makes communities more accessible and liveable to all.

• The Permanent Public Transit Program (PPTP) announced in Budget 2021 provides $14.9 billion over 8 years with $3 billion per year ongoing starting in 2026-2027. This funding builds on the $20 billion in funding already available for transit across the country from existing federal programs.

• The transit investments we are making will reduce greenhouse gas emissions, provide health benefits, and better serve disadvantaged groups including women, seniors, youth and those with low incomes.

• The Permanent Public Transit Program (PPTP) is a transfer payment program which was created to support the expansion of permanent public transit systems and active transportation networks across Canada from coast to coast.

• The program includes three direct-application funds which aim to support the economic recovery from COVID-19 by creating jobs, particularly in the construction sector and throughout related supply chains:

o The Zero Emission Transit Fund (ZETF): The five year, $2.75 billion ZETF will advance the Government of Canada’s commitment to help procure 5,000 zero emission public transit and school buses across Canada. Funding will be closely coordinated with the Canada Infrastructure Bank’s (CIB) commitment to invest in Zero Emission Buses (ZEBs) as part of its three-year Growth Plan.

 Stage I – submission of an Expression of Interest (EOI) application form opened in August 2021 (rolling intake with no closing date).
 Stage II – submission of Planning and Capital application forms is expected to open shortly (by the end of January 2022) also as a rolling intake (with no closing date).

o The Active Transportation Fund (ATF): The five year, $400 million ATF will expand and enhance active transportation networks in communities of all types and sizes, and support Canada’s National Active Transportation Strategy. It will do so by supporting planning for and deployment of a wide range of walking, cycling, and other active mobility infrastructure.

 ATF's first intake is expected to open shortly (by the end of January 2022) for both, the Planning and Capital streams. The intake will be open for at least 8 to 10 weeks.

o The Rural Transit Solutions Fund (RTSF): The five year, $250 million RTSF will address unique mobility challenges in rural communities by supporting planning and deployment of locally tailored mobility solutions in rural communities, including support to assess the viability of new approaches to mobility.

 Intake for Planning and Design projects opened Summer 2021 and closed on October 7, 2021. INFC has received 49 applications that are under review.
 The application intake for the Capital Projects stream is expected to open shortly (by the end of January 2022). The intake will be open for 10 weeks.

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

• To date, funding for four major transit projects has been approved through the PPTP, three of which are partially funded through the Investing in Canada Infrastructure Program, with more expected as application intake processes open.

• In addition, starting in 2026-27, $3 billion in annual transit funding will be made available on an on-going basis. All funds in the PPTP will be managed through Grants and Contributions Agreements signed with eligible recipients. Eligible recipients for funding may include municipal or regional governments; a provincial or territorial government, Indigenous governing bodies; federally or provincially incorporated not-for profit organizations mandated to improve Indigenous outcomes; organizations serving Indigenous communities living in urban centers and First Nations living off reserve; and Indigenous development corporations. Each Fund also has additional requirements for eligible recipients.

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