Feds promise $15 billion for transit projects over the next 8 years

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Ontario Construction News staff writer

The federal government is promising cash-strapped cities $14.9 billion in permanent funding for their public-transit systems โ€” though most of the money will not be available for several years.

Prime Minister Justin Trudeau made the announcement last week.

โ€œInvestments will support major public transit projects like subway extensions, help electrify fleets with zero-emission vehicles,โ€ Trudeau said during a virtual news conference.

โ€œThey will also be used to meet the growing demand for walkways and paths for cycling and help rural and remote communities deliver projects to meet their mobility challenges.โ€

Ontario asks for $1.5 billion for Hamilton LRT project one day before Trudeau announces $15 billion funding plan

About $6 billion will be available to municipalities initially for projects that are ready to go, according to the government, while the remainder will go into a $3-billion per year fund for projects starting in 2026-27.

Exactly what needs towns and cities will have over the long term remains uncertain as municipal leaders consider how their communities will be after the pandemic, including the extent to which working from home will replace many peopleโ€™s traditional commutes.

โ€œPermanent, long-term funding for public transit will mean new subway lines, light-rail transit and streetcars, electric buses, cycling paths and improved rural transit,โ€ said Catherine McKenna, minister of infrastructure and communities.

โ€œIt will mean that Canadians can get around in faster, cleaner, and more affordable ways. And it will help drive us to net-zero emissions and ensure a more sustainable future for our kids.โ€

Edmonton Mayor Don Iveson, chair of a group of mayors from Canadaโ€™s largest cities and participated in Wednesdayโ€™s announcement, echoed that assessment in an interview with The Canadian Press.

โ€œUntil thereโ€™s mass vaccination, it will take some time for ridership to recover,โ€ he said. โ€œBut even in the worst-case scenario, most of us are assuming transit ridership returning to normal within three to five years. And so these systems that weโ€™re building will be here for generations to come.โ€

The money is intended for new systems and expansions but will not specifically help municipalities struggling to pay the costs of operating public-transit systems during the pandemic, when many buses and subways are largely empty.

While the federal government and provincial counterparts stepped up to help cover many of those shortfalls last year, Iveson said discussions about assistance this year remain ongoing.

โ€œThe federal government very much understands the need economically and as a matter of fairness to local governments who really arenโ€™t in a position to run deficits in the same way,โ€ he said.

โ€œSo we do need that backstop support. Provinces got there last year, and weโ€™ll need to work with them to get there again for 2021.โ€

transit announcement

The task now: securing commitments from various provinces to pick up their parts of the tabs for individual projects.

Unlike previous infrastructure commitments, the new money will not be specifically divided up between provinces, but instead put into a pot that can be dipped into whenever a project is ready.

The federal government says it will work with provinces, territories and municipalities along with Indigenous communities and others to identify projects and other potential uses for the $3-billion annual fund.

Toronto Mayor John Tory as well as various environmental groups also chimed in with their support for the promised public-transit funds.

Conservative infrastructure critic Andrew Scheer, however, accused the Liberal government of failing to address the needs of Canadian municipalities and provinces due to delays in past infrastructure-spending promises.

The Liberal infrastructure program is awful, Scheer wrote on Twitter. โ€œJust ask the (parliamentary budget officer), their own internal audits, and Statistics Canada. Justin Trudeau hopes you will be fooled by his promises for the future, when he cannot get the job done today.โ€

$15 billion transit funding announcement a step in the right direction: RCCAO

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