Rural Transit Solutions Fund — Capital Projects

• 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

Who is eligible?

• Provincial or territorial governments
• Municipal or regional governments and wholly owned public sector bodies
• Federally or provincially incorporated not-for-profit organizations and charities
• Indigenous governments, Indigenous organizations, and Indigenous development corporations

Who is not eligible

• Individuals and private citizens
• Federal entities, including federal Crown corporations
• Private sector entities
• Applicants serving populations over 150,000 mainly in the urban area of a Census Metropolitan Area

Eligible expenses

• Purchase of transit vehicles, including buses, community vans, zero-emission vehicles, small crafts, and other transit vehicles
• Construction or installation of fixed transit assets, such as bus stops, shelters, signage, buildings, and other supporting infrastructure
• Accessibility upgrades to public transit infrastructure
• Professional fees for project management, engineering, design, surveying, construction management, and request-for-proposals support
• Eligible start-up and supporting costs, such as charging infrastructure, safety equipment, initial software and GPS tools, vehicle decals, Indigenous consultation costs, and approved micromobility components

Ineligible Costs and Activities

• Costs incurred before project approval or before the contribution agreement is signed, except approved Indigenous consultation costs
• Ongoing operating costs such as salaries, insurance, maintenance, electricity, and fuel
• Leased vehicles, transit involving travel outside Canada, or solutions that rely on air travel
• Land or building purchases, general repairs, furnishings, and non-fixed assets not necessary for the project
• Project overruns, cancelled project costs, financing costs, legal fees, and refundable taxes

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

• 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

• Step 1: Review guidance
  • Review the Capital Stream application guide and step-by-step guide.
  • Confirm your organization is eligible and identify the required supporting documents.
• Step 2: Create portal account
  • Register for an account on Housing, Infrastructure and Communities Canada’s Applicant Portal.
  • Create or update your organization profile.
• Step 3: Complete the application
  • Access the Rural Transit Solutions Fund Capital Projects application in the portal.
  • Complete the form with project details, finances, risks, and required attachments.
  • Attach supporting documents, including a KML file showing project asset locations.
• Step 4: Submit through the portal
  • Validate all sections of the application.
  • Complete the attestation and submit the application through the Applicant Portal during an intake period.

• Applications are reviewed by Housing, Infrastructure and Communities Canada, and applicants may be contacted for additional information.
• Funding decisions are communicated in writing as soon as possible.
• Approved applicants receive an Approval In Principle letter confirming federal funding.
• A contribution agreement must then be finalized before any eligible expenses can be reimbursed.
• Construction cannot begin and funding cannot flow until any required environmental and Indigenous consultation requirements are met.

• Joint applications are allowed, with one lead applicant designated to submit on behalf of partner organizations.
• Assets funded through the program must remain owned by the eligible organization and be kept for at least five years after the contribution agreement is signed.
• Projects are expected to be completed by 2029-30, and capital purchases are expected to be acquired within three years of signing the contribution agreement.
• The intake period for this stream is currently closed.