Canada creates first rural transit fund

March 30, 2021
The government committed C$250 million during the next five years to promote and support transit needs in rural and smaller communities.

The government of Canada has committed to investing C$250 million (US$198.41 million) over the next five years in transit needs for rural communities. This is the first time the country created a dedicated fund for rural transit needs and the investment is part of the government’s C$14.9 billion (US$11.73 billion) dedicated transit investment announced in February.

“The first ever Rural Transit Fund recognizes that Canadians living in rural and remote areas and in small communities have unique transportation challenges that require flexible, tailored solutions. We’ll work with communities to find the best transit solutions and provide the support to make them a reality, creating local jobs and growth, helping to tackle climate change and building more inclusive communities,” said Canada Minister of Infrastructure and Communities Catherin McKenna.

The funding for rural transit needs will begin in 2021 and is designed to support the “planning and deployment of innovative mobility solutions” in rural communities such as on-demand services, volunteer community carpooling and electric vehicle ride shares. The government notes one in five Canadians live in rural communities and these communities account for nearly 30 percent of the nation’s gross domestic product.

"The pandemic has reminded us how vital our connections are,” said Canada Minister for Women and Gender Equality and Rural Economic Development Maryam Monsef. “Strengthening and building rural transportation networks is the government's next step in creating jobs and improving health and safety of Canadians. To the women, seniors, parents, leaders and youth who asked for rural connections: the government has heard you. We are moving forward."

The Canadian Urban Transit Association (CUTA) applauded the move to focus on rural transit needs, noting the transit needs of rural communities have “often been overlooked through programs that were designed to serve communities with existing transit systems.”

“We welcome Minister McKenna’s announcement today,” said Marco D’Angelo, CUTA president. “It’s a significant advance for smaller and rural communities and recognizes that public transit isn’t only a big city service. It can keep smaller communities connected, too, while reducing carbon emissions.”

About the Author

Mischa Wanek-Libman | Editor in Chief

Mischa Wanek-Libman serves as editor in chief of Mass Transit magazine. She is responsible for developing and maintaining the magazine’s editorial direction and is based in the western suburbs of Chicago.

Wanek-Libman has spent more than 20 years covering transportation issues including construction projects and engineering challenges for various commuter railroads and transit agencies. She has been recognized for editorial excellence through her individual work, as well as for collaborative content. 

She is an active member of the American Public Transportation Association's Marketing and Communications Committee and serves as a Board Observer on the National Railroad Construction and Maintenance Association (NRC) Board of Directors.  

She is a graduate of Drake University, where she earned a Bachelor of Arts degree in Journalism and Mass Communication with a major in magazine journalism and a minor in business management.