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By Émile Audet
December 4, 2025

What the Canada Public Transit Fund Can Fund

The Canada Public Transit Fund (CPTF) is a landmark initiative aimed at enhancing public transit and active transportation infrastructure across Canada. By providing $3 billion annually from 2026-27, the CPTF supports a variety of projects that promote sustainable transit solutions.

Overview of the Canada Public Transit Fund

The CPTF is designed to meet the needs of communities of all sizes, from major urban centers to rural and Indigenous communities. It aims to increase public transit use, boost housing supply in transit-oriented communities, and mitigate climate change impacts. The fund supports projects through Metro-Region Agreements, Baseline Funding, and Targeted Funding streams.

Funding Amounts & Rates

The CPTF offers substantial funding to facilitate large-scale transit projects. The funding is structured to provide stable, predictable financial support, ensuring long-term planning and implementation. Communities can receive funding for various project phases, including planning, construction, and maintenance.

Eligible Expenses

The CPTF covers a wide range of expenses related to public transit and active transportation infrastructure:

Public Transit Infrastructure

  • Construction and expansion of transit systems such as buses, subways, and light rail.

  • Enhancement of existing transit facilities to improve service efficiency and capacity.

Active Transportation Projects

  • Development of bicycle lanes and pedestrian pathways.

  • Projects that integrate active transportation with existing transit networks.

Environmental and Zero Emission Solutions

  • Implementation of zero emission transit solutions, including electric buses and charging infrastructure.

  • Projects aimed at reducing the carbon footprint of transit operations.

Community Development

  • Initiatives that increase housing supply near transit hubs.

  • Projects that promote transit-oriented community planning.

Ineligible Expenses

While the CPTF provides comprehensive support, certain expenses are not covered:

  • Routine operational costs such as staff salaries and administrative expenses.

  • Projects that do not align with the fund’s environmental and sustainability goals.

Expense Documentation Requirements

Applicants must provide detailed documentation to substantiate their funding requests:

  • Comprehensive project plans and cost estimates.

  • Environmental impact assessments and feasibility studies.

  • Proof of community consultation and stakeholder engagement.

Examples of Funded Projects

The CPTF has already supported numerous transformative projects:

  • Expansion of subway lines in major metropolitan areas.

  • Development of integrated transit hubs that combine multiple modes of transportation.

  • Rural transit solutions that connect remote communities to larger urban centers.

Funding Disbursement & Claiming Process

Funding is disbursed based on project milestones and completion reports. Applicants must submit detailed claims outlining incurred expenses, along with progress reports to demonstrate project advancement.

Stacking Rules

The CPTF allows for the combination of its funding with other federal or provincial programs, provided the total funding does not exceed the project's eligible costs. Applicants must disclose all sources of funding to ensure compliance.

Conclusion

The Canada Public Transit Fund represents a pivotal opportunity for Canadian communities to enhance their transit infrastructure. By understanding eligible expenses and leveraging available funding, applicants can significantly advance their transit projects and contribute to sustainable urban development.

About the author

Émile Audet - Canadian grants specialist

Émile Audet

Canadian grants specialist
Working at helloDarwin for some time now, I'm in charge of providing you with the information you need on government aid. Dedicated to helping companies in Quebec and Canada reach their full potential, I write on the helloDarwin blog about the various programs, allowances and funding available to enable organizations to make their digital transformation through access to federal and provincial support.

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