Funding to Help Smaller Communities Build Safe and Reliable Transit

$30-million investment through 2026 provincial budget will expand transit services, connecting more people to jobs and supporting economic growth

The Ontario government is doubling its support for the Ontario Transit Investment Fund (OTIF) through the 2026 provincial budget, increasing it from $5 million to $10 million annually over the next three years. The $30 million investment will help rural and underserved communities build safe and reliable transit services, protecting Ontario’s economy and connecting more people to jobs and opportunity across the province.

“Our government is making historic investments to expand public transit and improve access to essential services like health care for people in rural and underserved communities,” said Prabmeet Sarkaria, Minister of Transportation. “This investment will ensure that Ontarians, no matter where they live, have access to reliable transportation options for years to come.”

The OTIF supports the start-up and expansion of transit projects like new bus services, on-demand rideshare services and door-to-door transportation. The program is helping municipalities, Indigenous communities and non-profit organizations deliver reliable transportation services across the province, particularly in rural communities.

“Our plan to protect Ontario includes the most ambitious provincial capital plan in Canadian history to make Ontario the most competitive, resilient and self-reliant economy in the G7,” said Peter Bethlenfalvy, Minister of Finance. “Doubling the Ontario Transit Investment Fund will help pave the way for long-term economic growth in rural and underserved communities, connecting more people to jobs and housing.”

Eligible applicants can apply on an ongoing basis for time-limited funding of up to five years to support transit projects that address transportation gaps in unserved or underserved communities across Ontario.

Quick Facts

• When OTIF launched in 2024, it included up to $5 million in annual funding. The province has now increased funding up to $10 million annually over the next three years.
• Municipalities, Indigenous communities and non-profit organizations can apply for OTIF funding online. Applicants are encouraged to form project teams to deliver coordinated, integrated and sustainable transit services for their communities.
• Ontario also provides funding to municipalities for transit and municipal roads through the Gas Tax program and the Connecting Links program.
• The Indigenous Transportation Initiatives Fund (ITIF) provides funding for community-driven transportation related projects for Indigenous peoples in urban, rural and reserve settings across Ontario.
• The 2026 Budget furthers the Ontario government’s plan to attract jobs and investment, lower costs for workers and businesses, keep life affordable for families and individuals and make targeted investments in key public services that support the province’s long-term prosperity.