Ontario Increases Support for Transit Across the Province

Published on March 01, 2021

New funding provides added relief to ensure transit remains a reliable travel option


News Release

TORONTO - The Ontario government is providing $150 million in additional funding to help municipal transit systems address the financial impacts of the COVID-19 pandemic. This funding is in addition to the $2 billion previously committed by Ontario and the federal government through the Safe Restart Agreement to help municipalities continue to deliver critical transit services. During the peak of the pandemic, ridership dropped up to 90% of normal levels for some of Ontario's transit systems, which resulted in significant financial impacts for municipalities.

"We heard from municipalities and we are responding to their need for more support as COVID-19 continues to result in lost revenue and additional costs for transit systems," said Caroline Mulroney, Minister of Transportation. "Transit operators have done an incredible job keeping transit operating during this challenging time, and this support will help ensure there is reliable transportation for people to get to work or pick up essential items." 

The additional $150 million in provincial funding means that there is a total of $650 million in funding still available to municipalities up to December 31, 2021, with extensions to December 2022 granted on a case-by-case basis. In addition, Ontario is calling on the federal government to match the additional funding announced today to help ensure municipal financial needs continue to be met.

As part of the Safe Restart Agreement funding, municipalities need to work with the province to explore options to ensure local transit is safe, sustainable, affordable and integrated, both during the COVID-19 pandemic and beyond.

To support this work, Ontario is allowing municipalities to use Safe Restart Agreement funding towards new initiatives to make it easier and more affordable to travel between different transit systems, like adding capacity for on-demand microtransit and increasing fare and service integration across the region.

"We are committed to supporting our municipal partners in their mission to build back transit ridership when we come out of this pandemic," said Associate Minister of Transportation (GTA) Kinga Surma. "We recognize there's an opportunity now to work with our partners to ensure transit is safe, sustainable and affordable, both during COVID-19 and as we begin to recover."

"Access to transit is essential to help frontline workers get where they need to go. We thank the province for its continued support as transit systems face challenges due to COVID-19 over the past year and into 2021," said Kelly Paleczny, chair of the Ontario Public Transit Association. "This ongoing funding from the province will help keep transit a reliable option now and in the future."

"Workers, seniors, students, and people living with disabilities rely on public transit every day. It's critical it remains a safe and sustainable option for travel both during and after COVID-19," said Marco D'Angelo, president of the Canadian Urban Transit Association. "With this support from the province, municipalities can continue to operate transit today while also looking towards the future of transit and how we can work together to make it more convenient and sustainable."


Quick Facts

  • The federal-provincial Safe Restart Agreement is providing up to a total $4 billion in emergency funding to help Ontario’s municipalities deliver critical services.
  • The first phase of Safe Restart funding for transit flowed $700 million to municipalities in 2020 and to date $1.5 billion funding has been allocated.