Ensuring long-term predictable public transit funding for the City of Ottawa with over $180 million through the Canada Public Transit Fund

Ottawa, Ontario, Canada — By working closely with its partners across Canada, the federal government is ensuring that more Canadians will be able to live near public transit, connecting them to jobs, services, and their communities.

Today, the Honourable Jenna Sudds, Minister of Families, Children and Social Development, the Honourable David McGuinty, Minister of Public Safety, alongside Ottawa Mayor Mark Sutcliffe, announced a federal investment of over $18 million in annual

transit funding for the City of Ottawa, providing predictable and long-term funding, tied to greater density near transit.

Through the new Canada Public Transit Fund’s Baseline Funding stream, Ottawa’s transit authority, OC Transpo, will receive an annual funding allocation amounting to over $180 million over 10 years. Funding will upgrade, replace, or modernize Ottawa’s public transit infrastructure, and maintain it in a state of good repair.

This investment, beginning in 2026 until 2036, will help increase the housing supply and affordability as part of complete, transit-oriented communities, while helping to reduce greenhouse gas emissions and mitigate the impacts of climate change. 

Quotes

“I’ve heard loud and clear from our community about the challenges with public transit. That’s why we’re taking action to make it better, faster, and more reliable for everyone in Ottawa. We’re investing in transit improvements to ease congestion on our highways, keep our air clean, and ensure people can get where they need to go—whether it’s to school, work, or around the community—on time.”

The Honourable Jenna Sudds, Minister of Families, Children and Social Development, and Member of Parliament for Kanata—Carleton, Ontario

“Investing over $180 million over the next 10 years to improve public transit in Ottawa will make it easier for people across our city to get to work, shop, and visit family and friends. As we build more homes and grow our communities we need a strong public transit system now, and for generations to come.”

The Honourable David J. McGuinty, Minister of Public Safety, and Member of Parliament for Ottawa South

“Public transit is an affordable, environmentally friendly, and essential option for many residents in our community. In principle, it should make life easier—but we all know Ottawa’s transit system needs improvement. Buses need to show up on time, and we need a reliable train system. That’s why the federal government is stepping up and working with the City of Ottawa to invest in real improvements—because you deserve a transit system that actually works when you need it.”

The Honourable Mona Fortier, Chief government whip and Member of Parliament for Ottawa—Vanier

“This is a major step forward for Ottawa. With over $18 million in annual funding through the Canada Public Transit Fund—totalling more than $180 million over the next decade—we’re securing reliable, sustainable public transit for the future. This investment will modernize and maintain Ottawa’s transit infrastructure, reduce congestion, and drive affordable housing near transit hubs. A key investment in revitalization of downtown Ottawa.”

Yasir Naqvi, Parliamentary Secretary to the Minister of Health, and Member of Parliament Ottawa Centre

“The funding announced today will help Ottawa in a number of important areas, including closing the systemic gap in our transit budget. The transit funding ensures we can maintain and improve service for our rapidly growing city. We will continue to work with the federal government on a number of other shared priorities in the weeks ahead, as we continue to tackle financial pressures and strive to build a better city for all our residents”

Mark Sutcliffe, Mayor, City of Ottawa

Quick facts

• The City of Ottawa will receive $180,231,660 over ten years from 2026 to 2036. Baseline funding is conditional on the City of Ottawa submitting a capital plan, and the subsequent signing of a funding agreement.

• The Canada Public Transit Fund (CPTF) is the largest public transit investment in Canadian history. It is designed to meet the unique needs of communities of all sizes, from large metropolitan areas to mid-size and smaller communities, including rural, remote, northern and Indigenous communities. 

• Since 2015, the federal government has committed over $30 billion for public transit and active transportation projects. These historic investments have resulted in close to 2000 projects across the country.

• Starting in 2026-27, the CPTF will provide an average of $3 billion a year in permanent funding that will respond to local needs by enhancing integrated planning, improving access to public transit and active transportation, and supporting the development of more affordable, sustainable, and inclusive communities. 

• The CPTF supports transit and active transportation investments through three streams:

  • Metro-Region Agreements, which offer a new way for the federal government, provinces and municipalities to collaborate together. These agreements will support the long-term development of public transit infrastructure in large urban areas. Through these agreements, the federal government will allocate funding and work with our partners to support the planning and construction of public transit. This funding is about promoting liveable communities with accessible public transit and attainable housing.
  • Baseline Funding, which will deliver on the federal government’s commitment to provide stable, predictable support that communities with existing transit systems across Canada are seeking for routine capital investments, expansion, and state of good repair projects.
  • Targeted Funding, which will provide support targeting specific public transit projects, including active transportation, rural and remote transit, and transit solutions in Indigenous communities, as well as electrifying public transit and school transportation. Targeted funding will be delivered through periodic calls for applications that will enable the federal government to adapt to evolving priorities and community needs.

• The new Fund also provides tangible solutions on how to best leverage transit investments to support housing and environmental objectives, particularly in large metropolitan areas. Climate resilience, social inclusion, reducing greenhouse gas emissions, and considering how local transit systems impact housing supply are now integral parts of regional planning.