Rural Transit Solutions Fund — Capital Projects

Q: How much funding can be received?

Rural Transit Solutions Fund — Capital Projects Funds up to 100% of admissible expenses, capped at $5000000 per project.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: 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

Q: Who are the financial supporters of the Rural Transit Solutions Fund — Capital Projects?

Rural Transit Solutions Fund — Capital Projects is funded by Infrastructure Canada, Government of Canada

Q: 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: • Private sector entities are not eligible. • Applicants must be legal entities in good standing with the Government of Canada. • Eligibility limited to governments, public sector bodies, not-for-profits, and Indigenous organizations.

Q: Who can I contact for more information about the Rural Transit Solutions Fund — Capital Projects?

You can contact Infrastructure Canada.

Q: Where is the Rural Transit Solutions Fund — Capital Projects available?

The Rural Transit Solutions Fund — Capital Projects program is available across Canada.

Q: Are Indigenous Peoples eligible for the Rural Transit Solutions Fund — Capital Projects program?

Yes, Indigenous Peoples are eligible to apply for the Rural Transit Solutions Fund — Capital Projects program.

Last Update: July 22, 2025

Canada

Money for transit solutions in rural and remote communities

At a glance

Eligible Funding

Max. $5,000,000
Up to 100% of project cost

Timeline

Open Date : April 23, 2023

Financing Type

Grant and Funding

Eligible Industries

Transportation and warehousing
Public administration

Funds Providers

Unspecified

Program status

Closed

Overview

Receive funding to help cover the capital costs of a new or expanded transit solution, to support zero-emission transit solutions, and to establish safe and secure transit systems in rural communities.

Financing terms and conditions

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.

Activities funded

Development and expansion of locally driven public transit solutions in rural, remote, Indigenous, and Northern communities.
Implementation of fixed-route public transit services.
Launch of on-demand transit models to improve local transportation.
Introduction of micromobility services, such as e-bike programs, tailored for rural areas.

Examples of admissible projects:

$ 3,000,000

Purchase and deployment of electric buses for a sustainable transit solution

$ 2,500,000

Installation of electric vehicle charging stations across key rural transit points

$ 5,000,000

Establishment of a zero-emission intermodal transit hub linking rural communities

$ 4,900,000

Purchase of low-emission hybrid buses for rural community transit improvement

$ 5,000,000

Acquisition of a zero-emission fleet for rural transit services

$ 1,000,000

Development of a digital platform for rural transit schedules and booking systems

Eligibility

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)

Selection criteria

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

How to apply

Access Applicant Portal

Visit the official website of the Rural Transit Solutions Fund.
Navigate to the 'How to apply' section within the Capital Projects Stream section.
Read all the provided materials, including step-by-step guides and FAQs.

Prepare Application Materials

Gather all required documentation, including project proposals, budgets, and any necessary certifications.
Ensure all documents are compliant with the stated guidelines.
Draft a detailed project proposal highlighting objectives and expected impacts.

Complete Application Form

Log into the application portal using your registered details.
Fill out the application form with accurate and detailed information about the proposed project.
Attach all necessary documents as specified in the application guide.

Submit Application

Review your application form and attached documents for accuracy and completeness.
Submit the complete application package through the online portal before the deadline.

Confirmation and Follow-Up

Receive a confirmation email acknowledging receipt of your application.
Retain the confirmation email for future reference.
Monitor communications from the funding body for any updates or requests for additional information.

Additional information

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.

Documents and links

Rural Transit Solutions Fund — Capital Projects

Apply to this program

Frequently Asked Questions about the Rural Transit Solutions Fund — Capital Projects Program

Here are answers to the most common questions about the Rural Transit Solutions Fund — Capital Projects. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.