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Federal funding cut derails better transit

https://www.winnipegfreepress.com/opinion/analysis/2025/11/17/federal-fundin...

THE Government of Canada has cut funding for transit agencies across the country. For all the talk of investment in the federal budget, the $3-billion annual Canada Public Transit Fund has been subsumed into the new Build Communities Strong Fund and weakened the federal government’s support for public transit.

Transit agencies know they cannot fund capital projects without support from higher orders of government and will now operate in limbo. Rather than work on improving operational levels, tendering projects, or procuring new equipment that would be manufactured here in Canada, the cut and change to the federal funding model effectively derails transit expansion plans.

Much of Canada’s transit capital assets are in a state of condition akin to the infamous Sea King helicopters. Montreal’s Metro cars have been in service since the 1976 Olympics; Edmonton and Calgary are running LRT trains that are more than 40 years old; and Toronto’s Line 2 subway cars date back to when Canada was navigating the first free trade agreement with the United States. Across the country, thousands of buses are also operating well beyond their design life, creaking away long after their planned life cycle.

As of 2024, the country’s eight largest transit agencies faced a growing annual operating budget shortfall of $1.6 billion. That operating shortfall, keeping buses and trains moving, is exacerbated by a capital projects backlog that’s chronic with so much of Canada’s public infrastructure. Cutting federal funding levels is going to make this worse.

The slated-for-elimination Canada Public Transit Fund was created to provide certainty for Canada’s transit agencies and end the annual parade of politics for budget allocations that derails prudent planning. By returning to the status quo ante, transit agencies and municipal leaders must now devote more resources to “collaborating” with Ottawa.

It is ironic that Prime Minister Mark Carney repeatedly asks transit workers and bus manufacturers to join him for photo-ops. Just last week in touting a budget that cuts transit funding, he brought the Parliamentary press gallery to an LRT yard to promote it. Back in the spring, he held similar photo-ops at the site of bus manufacturers in Manitoba and Quebec.

While the transit railcars and bus manufacturing industries in Canada may not get as much of the attention as the auto sector, thousands work building transit vehicles across Canada and have capacity to do more. The prime minister should maintain the dedicated funding stream that supports their work instead of just using them as a backdrop.

Each agency could easily tell you today where they could address service deserts or increase service frequency to increase ridership, creating more equitable communities and a stronger economy, if the funding was there to enable it. Each agency also has a list of shovel-ready projects and vehicles they need to order as soon as possible that could get transit vehicle manufacturers working more.

The Economic Benefits of Transit study conducted by the University of Toronto last year showed that for every $1 invested in transit, $7 in economic and social benefits are realized in the community. The thousands who make the buses in Winnipeg and Montreal, support the jobs of 65,000 transit agency staff across the country, who empower five million Canadians to get school, work, and support a functioning Canadian society.

It is difficult to believe that a $3-billion annual dedicated transit fund turning into a broader annual catch-all fund for all types of municipal infrastructure is going to lead to better outcomes for riders. And worse, a bureaucratic reorganization of how the federal government allocates funding to support transit projects will lead to a lost year of action as they wade through this new state of paralysis.

At the very time when Canada’s economy is struggling, this transit funding cut will make things worse. Public transit must not be viewed simply as a line item expense. It is an investment in our economy and communities that enables so much more. It also lowers climate emissions, reduces gridlock, and makes mobility more affordable for families who are already struggling with a rising cost of living on so many fronts.

There is still time to fix this mistake. Members of Parliament can amend the budget to restore the Canada Public Transit Fund so transit agencies can reliably plan their work with federal support. If you ask any transit rider or worker if they would prefer better transit or more photo-ops for politicians after another six months of debating plans, the response would be unanimous. Ottawa must act to correct course before it is too late.

David Cooper is a professional urban planner, leading transit expert, and principal and founder at Leading Mobility.