Open
Source verified July 30, 2026
Rural Transit Solutions Fund — Capital Projects
Supports rural transit capital solutions
Latest source updateLast Update: April 9, 2026Latest change: The Capital Projects guidance now shows expanded eligibility and scope details, including rural population thresholds and more specific eligible expense examples.View change
Latest source update
Last Update: April 9, 2026
Latest change: The Capital Projects guidance now shows expanded eligibility and scope details, including rural population thresholds and more specific eligible expense examples.
Rural Transit Capital Guide Updated
The Capital Projects guidance was expanded with more specific rules for who can apply, including clearer population-threshold language for communities above 50,000 and 150,000 residents. It also adds more detailed examples of eligible capital and soft costs, along with broader project scope language for rural transit use cases. Funding wording and application guidance were also adjusted slightly, while the core timeline remains closed and unchanged. Contact and portal details appear to remain available, with no major deadline or intake change visible.
Funding available
$ 10,000,000
Deadline
Open continuously
Opened April 23, 2023
Location
Canada
Who can apply
Legal entities capable of entering into legally binding agreements and in good standing with the Government of Canada
See full eligibility
Overview
Rural Transit Solutions Fund: Capital Projects Stream supports eligible organizations in Canada’s rural, remote, Indigenous and Northern communities with a federal contribution of up to $10 million to develop and expand locally driven transit solutions. Funding can cover vehicles, fixed assets, accessibility upgrades, professional fees, micromobility, and Indigenous consultation costs.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop strategic partnerships
- Develop a new program or service
- Increase social or community impact
Eligible Funding
- Maximum amount : 10,000,000 $
- Up to 100% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Public or Parapublic institution
- Non-profit
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Persons with Disabilities
- Rural or Northern Residents
Non-profit candidates
Sector of operation
- Environment
- Economic, Social and Community Development
- Diversity and Inclusion
Target groups
- General public
- Indigenous peoples
- Rural / Remote communities
Revenue structures
- All structures
Scope
- Local
- Municipal
- Regional
- Provincial
- National
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Development and expansion of locally driven transit solutions
- Capital projects that support fixed-route, on-demand transit, and micromobility services
- Projects that improve access, safety, or user experience through fixed asset enhancements such as bus shelters
- Active transportation infrastructure that complements a broader transit system or solution and supports accessible and safe access to transit service
Documents Needed
- Most recent audited financial statement
- Feasibility transit study, if applicable
- Proof of incorporation, if applicable
- Letters of support confirming financial contributions or organizational mandate, if applicable
- KML file showing project asset locations
Official resources
Eligibility
Who is eligible?
- Legal entities capable of entering into legally binding agreements and in good standing with the Government of Canada
- Provincial or territorial governments
- Municipal or regional governments created by or under provincial or territorial statute, and public sector bodies created by or under provincial or territorial statute or by regulation or wholly owned by a province, territory, municipal or regional government
- Federally or provincially incorporated not-for-profit organizations or charities, and federally or provincially incorporated not-for-profit organizations whose primary purpose is to improve Indigenous outcomes
- Indigenous benefiting organizations or recipients, including band councils, First Nation, Inuit or Métis governments or authorities, First Nation, Inuit or Métis governments created by legislation, and Indigenous development corporations
Who is not eligible
- Individuals and private citizens
- Federal entities, including federal Crown corporations
- Private sector entities
- Projects from applicants serving a population greater than 150,000 living mainly in the urban area of a CMA
Eligible expenses
- Vehicles, including buses, community vans, zero-emission vehicles, small crafts, and other types of vehicles
- Fixed assets, including buildings, bus stops, shelters, signage, and other fixed infrastructure
- Accessibility upgrades to public transit infrastructure
- Professional fees for project managers, engineers, design, surveying, construction management, and Request for Proposals support
- Active transit components, micromobility, Indigenous consultation costs, other necessary costs approved in advance, and eligible start-up expenses such as vehicle-related costs, regulatory expenses, zero-emission vehicle transition costs, vehicle visibility, and data management
Ineligible Costs and Activities
- Costs incurred before the contribution agreement is signed, or expenses related to agreements or contracts signed before project approval, except approved Indigenous consultation costs that may be retroactively eligible dating back one year prior to the submission date
- Transit involving travel outside of Canada and proposed solutions that rely on air travel as a means of serving the community
- Costs related to project overruns or cancelled projects or components, and financing, interest payments, and legal fees
- Purchasing land, buildings, or associated real estate fees; leasing land, buildings or equipment unless related to project construction; and furnishings and non-fixed assets that are not direct and necessary for the project
- General repairs and maintenance, ongoing operation costs, costs for ongoing promotion and communication, services normally provided by the recipient, refundable taxes, donations or in-kind contributions, and incremental employee costs unless approved in advance
Eligible geographic areas
- Canada
- Rural and smaller communities, including smaller towns and villages within Census Metropolitan Areas if the project targets rural needs
- Territories
- Remote, Indigenous, and Northern communities
Selection criteria
- Community demand for the rural transit solution
- Inclusiveness benefits to the local community
- Potential for economic impact
- Environmental impact
- Viability and local support for the project
How to apply
- Register for an HICC Applicant Portal account.
- Create or update your organization’s profile.
- Click Apply for Funding, then Apply for the Canada Public Transit Funds (CPTF), then Apply for the Rural Transit Solutions Fund, and then Apply for a Capital Project Submission.
- Confirm the Privacy and Eligibility statements.
Processing and Agreement
- Housing, Infrastructure and Communities Canada will review and assess each proposal according to the Rural Transit Solutions Fund's merit criteria.
- Applicants will be informed if their projects have been successful.
- If a project is approved, a contribution agreement will establish the federal contribution amount and conditions for payments.
- The contribution agreement will require reporting throughout the completion of the project and a final report.
- Reporting requirements include changes impacting project outcomes, expected and actual project start and end dates, procurement activities, and the project's achievements.
Contacts
Frequently Asked Questions about the Rural Transit Solutions Fund — Capital Projects Program
What is the Rural Transit Solutions Fund — Capital Projects?
Rural Transit Solutions Fund: Capital Projects Stream supports eligible organizations in Canada’s rural, remote, Indigenous and Northern communities with a federal contribution of up to $10 million to develop and expand locally driven transit solutions. Funding can cover vehicles, fixed assets, accessibility upgrades, professional fees, micromobility, and Indigenous consultation costs.
How much funding can be received?
Rural Transit Solutions Fund — Capital Projects Funds up to 100% of admissible expenses, capped at $10,000,000 per project.
Who is eligible for the Rural Transit Solutions Fund — Capital Projects program?
To be eligible for the Rural Transit Solutions Fund — Capital Projects program, you must:
The project must meet at least one of the three program objectives.
The applicant must meet the population served criteria.
Communities with populations between 50,000 and 150,000 must show the project targets their rural population.
What expenses are eligible under Rural Transit Solutions Fund — Capital Projects?
Development and expansion of locally driven transit solutions
Capital projects that support fixed-route, on-demand transit, and micromobility services
Projects that improve access, safety, or user experience through fixed asset enhancements such as bus shelters
Active transportation infrastructure that complements a broader transit system or solution and supports accessible and safe access to transit service
Who can I contact for more information about the Rural Transit Solutions Fund — Capital Projects?
You can contact Housing, Infrastructure and Communities Canada (HICC) by email at RTSF-FSTCR@infc.gc.ca or by phone at 1-833-699-2280.
Where is the Rural Transit Solutions Fund — Capital Projects available?
The Rural Transit Solutions Fund — Capital Projects program is available across Canada.
Is the Rural Transit Solutions Fund — Capital Projects a grant, loan, or tax credit?
Rural Transit Solutions Fund — Capital Projects is a Grant and Funding