Rural Transit Solutions Fund — Capital Projects
Last Update: July 22, 2025
Canada
Money for transit solutions in rural and remote communities
Rural Transit Solutions Fund — Capital Projects 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
Grant Providers
- Infrastructure Canada
- Government of Canada
Program status
Closed
Overview of the Rural Transit Solutions Fund — Capital Projects program
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.
Eligible projects & activities
- 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 criteria of the Rural Transit Solutions Fund — Capital Projects program
- 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)
Eligibility criteria of the Rural Transit Solutions Fund — Capital Projects program
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 to the Rural Transit Solutions Fund — Capital Projects program
1
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.
2
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.
3
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.
4
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.
5
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.
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