TORONTO – November 2, 2025. Transit and environmental groups across Canada are expressing deep disappointment that the Carney government’s first budget cuts the Canada Public Transit Fund despite the government’s own stated commitment to prioritize “projects of national interest” that strengthen Canada’s economy and advance climate action.
“Public transit is a project of national interest,” said Andrew Pulsifer, Executive Director of TTCriders. “In cities and towns across Canada, transit is a mover of the economy, connecting millions of people to work, school, and opportunity. The Carney government says it wants to build an economy that works for everyone, but you can’t do that while leaving transit systems underfunded and riders stranded.”
Page 309 of the federal budget says “A portion of uncommitted funding from the Canada Public Transit Fund will be reallocated to the Build Communities Strong Fund.” While the budget says that transit priorities will still be eligible, expanding the scope to other non-transit funding likely means that there will be less funding put towards these kinds of initiatives.
What this means is that there is no new funding to expand or stabilize public transit service, no operating support for cities struggling to maintain service, and no commitment to double or accelerate the Canada Public Transit Fund, despite Liberal MPs and candidates pledging to do so in the election earlier this year.
Pulsifer noted that Toronto alone faces a $4.3-billion State-of-Good-Repair backlog. “Federal investment in new trains and state-of-repair work keeps Canada’s economic engine running,” he said. “If ‘Public Transit’ is being removed from the name of the fund, we have to assume that transit projects will no longer receive priority from this government.”
Advocates say public transit investment is also vital to Canada’s climate and affordability goals.
“Public transit is one of the most powerful tools we have to tackle the climate crisis and make life more affordable,” said Sam Hersh, Clean Transportation Program Manager at Environmental Defence Canada. “If the Carney government wants to show leadership on affordability and climate, it must treat public transit as vital national infrastructure, not a local afterthought.”
Advocates warn that with the 2026 FIFA Men’s World Cup approaching, failing to invest now will leave Toronto and Vancouver facing record congestion, service disruptions, and gridlock on the world stage.
“Public transit investment creates jobs, drives growth, and strengthens Canada’s competitiveness,” said Pulsifer. “If this government truly believes in strategic national projects, transit should be at the top of the list.”
-30-