Ontario awards C$376 million to municipalities to operate, improve transit service

The government of Ontario is providing C$375.6 million (US$298.81 million) to municipalities throughout the province to operate and improve local transit.

The funds are made possible through the provincial Gas Tax program and can be used to extend service hours, buy transit vehicles, add routes, improve accessibility or upgrade infrastructure. Funds for the program are determined by the number of liters of gasoline is sold in the province during the previous year. The pandemic has resulted in reduced gas sales and the province has provided a one-time C$120.4 million (US$95.79 million) in funding to ensure the transit services provided throughout the province are supported.

“Throughout the COVID-19 pandemic, we have seen how critical public transit is for frontline workers and for Ontarians who depend on these services to get to medical appointments, the grocery store and other important locations,” said Ontario Minister of Transportation Caroline Mulroney. “Gas Tax funding remains a vital source of long-term transit funding that municipalities can rely on to help operate and expand existing public transit services – ensuring people have access to safe and reliable transportation when they need it.”

The funding will support service in 107 municipalities in the province, which represents more than 92 percent of Ontario’s population.

“The government’s ongoing responsiveness to public transit’s needs during the pandemic has allowed transit to keep running,” said Kelly Paleczny, chair of the Ontario Public Transit Association. “Whether transit systems have suffered lower revenue due to lower gas sales or fewer riders, Premier [Doug] Ford and Minister Mulroney have, since the pandemic’s early days, helped keep service levels high for the more than one million Ontarians who rely on transit every day. The Gas Tax announcement is the latest evidence of their support and we thank them.”