CUTA urges Canadian government to bolster transit funding for future of its systems

The Canadian federal government is being urged by The Canadian Urban Transit Association (CUTA) to continue and expand investment in public transit for its future security, warning that mounting infrastructure gaps and aging fleets threaten the reliability and affordability of systems across the country. 

At a press conference on Parliament Hill, CUTA President and CEO Marco D’Angelo and CUTA Chair Dave Reage urged the government to ensure that the Canada Public Transit Fund (CPTF), launching in 2026, is designed and funded to succeed. 

“Transit is not just a service, it is nation building infrastructure,” D’Angelo said. “Like the railways and highways that connected earlier generations, today’s transit systems will connect the next generation of housing, jobs and economic opportunity. This is our chance to build a more sustainable, more affordable and more competitive Canada.” 

The CPTF will provide C$3 billion (US$2.2 billion) annually in stable funding for public transit infrastructure. However, CUTA says it warned that the way the fund is currently structured could delay urgent projects, with the bulk of dollars locked in complex Metro-Region agreements while only a smaller baseline funding stream is immediately accessible. The association says that stream must be expanded to meet Canada’s urgent infrastructure needs and to align with the Prime Minister’s goal of rapid nation-building infrastructure development. 

Across Canada, the average bus is now 9.5 years old, up from 8.3 just a few years ago, and some vehicles are nearly 20 years old. Over C$9.5 billion (US$6.9 billion) in transit assets are already in poor condition, requiring up to C$20 billion (US$14.5 billion) in capital just to restore them. 

“The challenges are real, but they are solvable, if we act now,” Reage said. “We need to ensure this fund works for all communities and that it delivers funding fast enough to meet the needs of today’s commuters and tomorrow’s growth.” 

CUTA’s key recommendations to strengthen the Canada Public Transit Fund include: 

• Doubling the Baseline Funding stream from C$500 million (US$362.9 million) to C$1 billion (US$725.8 million) annually to accelerate shovel-ready projects. 
• Legislating the CPTF and adding a 5% annual funding escalator to protect its value against rising costs, with bus prices up more than 22% since 2020. 
• Using the Fund’s Targeted Funding stream to renew Canada’s aging fleets with flexibility on propulsion type (electric, hybrid or diesel) based on local readiness. 
• Cutting red tape in the Metro-Region stream and expanding eligibility so small and rural systems can access funding. 

CUTA also recommends amending the criminal code to strengthen penalties for assaults on transit workers and extending protections to all frontline staff. 

“Every dollar invested in public transit generates $2.40 in economic activity and adds $1 to Canada’s GDP,” D’Angelo said. “Transit is how we will unlock housing supply, strengthen labor markets, reduce congestion and cut emissions, all at once. With the CPTF set to launch in 2026, decisions made today will determine whether Canadians have reliable, affordable transit tomorrow. The time to act is now.”