Canada's biggest transit systems warn federal funding delays raise project costs | Daily Hive

Canada's three largest public transit authorities warn federal funding delays are driving up project costs

Elena_Alex_Ferns/Shutterstock

Canada’s three largest public transit authorities in Toronto, Montreal, and Vancouver are warning that cuts and delays in the Government of Canada’s long-promised permanent public transit funding could slow major infrastructure projects and make it harder for their growing metropolitan regions to tackle housing affordability and traffic congestion.

In a joint push in Ottawa ahead of the finalization of the 2026 federal budget, Toronto Transit Commission (TTC), Société de transport de Montréal (STM), and TransLink are calling on the federal government to restore and strengthen the 10-year Canada Public Transit Fund (CPTF) starting in 2026, which supports long-term transit expansion projects across the country.

The three public transit authorities submitted a shared pre-budget proposal asking Prime Minister Mark Carney’s government to reverse a recent reduction in the CPTF, speed up approvals for projects ready to begin construction, and make future public transit funding more stable and protected from inflation.

You might also like:

Their concerns intensified after the 2025 federal budget reduced the CPTF by $5 billion over 10 years — a cut equal to roughly 17 per cent of the program’s planned funding.

The previous federal Liberal administration led by Prime Minister Justin Trudeau promised a 10-year CPTF beginning in 2026, with $30 billion allocated toward the program or $3 billion annually through 2036. However, with the changes made by the Carney administration, this has now fallen to $25 billion or $2.5 billion per year through 2036.

A portion of the CPTF has been partly diluted into Carney’s new 10-year, $51-billion Building Communities Strong Fund (BCSF) announced in November 2025, which enables a much wider range of infrastructural expenses, including housing, healthcare, schools, community centres, utilities, roads, bridges, and public transit.

The intent of the CPTF was to provide predictable, stable, significant long-term funding towards the capital costs of building new and improved public transit infrastructure across the country.

Public transit officials from the TTC, STM, and TransLink are in Ottawa this week to meet with federal ministers and MPs to press their case. Together, all three public transit authorities say they face a combined total of more than $50 billion in unfunded capital needs over the next decade.

They are asking the federal government to restore the missing $5 billion, bringing the fund back to its original $30 billion commitment over 10 years.

They also want federal approvals streamlined for so-called “shovel-ready” projects, asserting the lengthy federal review and funding application processes are increasing costs and delaying construction timelines for projects already prepared to move forward.

A RapidBus vehicle in Metro Vancouver (TransLink), a TTC Subway train (JHVEPhoto/Shutterstock), and an STM Montreal Metro train (Benoit Daoust/Shutterstock).

The public transit authorities argue that reliable public transit investment is closely tied to broader economic and housing goals. Large public transit systems help people commute more affordably, reduce traffic congestion, and support higher-density housing developments around stations and public transit corridors.

“The CPTF is an important and long-awaited program that can help build Canada up by supporting major transit expansion, housing growth, affordability, and economic productivity,” reads a rare joint news release by the three public transit authorities.

“Long-term certainty is essential for agencies planning major infrastructure, fleet, and state-of-good-repair investments.”

In addition, TTC, STM, and TransLink are urging Ottawa to continue the CPTF beyond 2036 and tie future funding increases to inflation and rising construction costs, amid the rising market costs for construction materials, equipment, and labour.

During an event with the Greater Vancouver Board of Trade in February 2026, Gregor Robertson, who is the federal minister of housing and infrastructure and a former mayor of Vancouver, fully acknowledged that there are currently some major issues with the CPTF, with public transit authorities not seeing the funding due to the complexities of the process for public transit authorities to seek the funding.

Major portions of the CPTF have been deemed to be too complex and arduous, requiring a time-intensive application and in-depth planning processes necessitating very significant coordination between an urban region’s public transit authorities and municipal, regional, and provincial governments. This includes developing regional housing plans and transit-oriented development policies. On these aspects, TransLink and Metro Vancouver cities come far ahead of their counterparts in other parts of the country due to the B.C. government’s recent legislation on these matters, which has required B.C. municipal governments to adopt such strategies over the last few years.

“The [CPTF] money has not flowed. There were real challenges with gearing up and getting the money flowing out to transit for use of transit. We do a fantastic job on the ground, but the process and the way that that fund was set up has been very difficult for the transit authorities. So money has not been flowing, which is problematic,” said Robertson.

“What I’m bringing forward with my colleagues is we’re streamlining the funding in the Canada Public Transit Fund. We’re going to move it faster.”

Robertson asserted that over the next 10 years, there is $25 billion dedicated completely to public transit from the CPTF, and a separate $51 billion from the BCSF, which could be directed to public transit among the wide range of permitted uses.

“Overall, it’s about being more flexible, being more responsive, moving that investment a lot faster. We have to change the speed or the pace of government and investing right now. We have to move faster,” added Robertson.

This is the second time in recent years that the TTC, STM, and TransLink have come together to make a joint public plea regarding the CPTF. In 2024, all three public transit authorities asked the federal government to begin the CPTF early that year, instead of following the established timeline of starting in 2026. At the time, they were seeking expedited funding to execute orders for new subway trains and buses sooner to reduce the inflationary cost creep from waiting.

You might also like: