Rural Transit Solutions Fund — Capital Projects

• Federal contribution of up to $10 million for organizations with at least two years of transit experience or a recent public transit feasibility study (dated after January 1, 2020).
• Up to $250,000 in federal funding for organizations with less than two years of transit experience and no recent feasibility study.
• Up to 100% funding for recipients located in the Territories or for Indigenous communities/organizations and Territorial Governments.
• Up to 80% funding for recipients located in a province.
• Up to 60% funding for provincial governments or provincial crown corporations.

• The applicant must be a legal entity, such as a provincial or territorial government, municipal or regional government, a public sector body, a federally or provincially incorporated not-for-profit organization or charity, or an Indigenous organization or government.
• The applicant must be in good standing with the Government of Canada.
• The project must meet at least one of the following objectives: increase public transit use, contribute to climate change mitigation/resilience, or improve public transit options for all, particularly equity-deserving groups.
• The applicant must serve rural or remote communities, which may include small or mid-sized populations, or provide connectivity between rural communities.
• The applicant must have at least two years of transit experience or have completed a public transit feasibility study dated after January 1, 2020; organizations with less experience may still be eligible for reduced funding.

Who is eligible?

• Provincial or territorial governments
• Municipal or regional governments
• Public sector bodies created by provincial or territorial statute or regulation
• Federally or provincially incorporated not-for-profit organizations or charities
• Indigenous governments, organizations, and development corporations

Who is not eligible

• Individuals and private citizens
• Federal entities, including federal Crown corporations
• Private sector entities

Eligible expenses

The Rural Transit Solutions Fund: Capital Projects Stream aims to support capital expenditures for new or expanded rural transit solutions. This encompasses a variety of transportation modes and necessary infrastructure enhancements tailored to rural community needs.

• Purchase of fixed-route buses for rural transit.
• Implementation of non-traditional transit solutions such as ride-share or on-demand services.
• Acquisition of minivans, small craft, or zero-emission fleet vehicles for rural transportation.
• Construction of intermodal transport hubs.
• Installation of charging stations for electric vehicles.
• Procurement of software to facilitate transit operations and management.

Eligible geographic areas

• Rural areas across Canada, including rural communities within provinces and territories
• Smaller towns and villages outside core urban zones of Census Metropolitan Areas (CMAs)
• Indigenous communities across Canada
• Territories of Canada (Yukon, Northwest Territories, Nunavut)

There are evaluation and selection criteria for the Rural Transit Solutions Fund: Capital Projects Stream. The evaluation and selection criteria include:

• Alignment with program objectives and eligibility criteria
• Quality and feasibility of the project plan
• Extent of indigenous engagement and involvement
• Expected outcomes and benefits for rural transit solutions

• The application intake period for the Capital Projects Stream is currently closed, except for Indigenous applicants, who may submit until April 8, 2025 (3:00 p.m. EDT).
• Results will be communicated to applicants in writing in the coming months.
• Applicant guides, webinars, and FAQs are available to support the application process.
• Updates regarding the fund are posted on the official website and through a mailing list subscription.