CUPE is concerned that the federal budget leaves room for cuts to public transit funding that could put the stability of transit services across Canada at risk.
While the Liberals’ budget dedicates $51 billion to infrastructure spending through a new Building Communities Strong Fund, some of that funding is being redirected from the previously announced Canada Public Transit Fund. That fund was announced last year as the largest public investment in transit in Canadian history, committing $30 billion over 10 years starting in 2026-2027, with $3 billion per year to flow to public transit projects.
This stable, long-term transit funding is urgently needed to maintain service levels and expand transit infrastructure to serve growing communities. But Budget 2025 states that, “A portion of uncommitted funding from the Canada Public Transit Fund will be reallocated to the Build Communities Strong Fund.” Without predictable funding, municipalities and transit agencies have said that the rollout of new buses, trains and maintenance facilities will be at risk.
While the budget says that transit projects will still be eligible under the new Building Communities Strong Fund, reallocating dedicated transit dollars to a general infrastructure fund will mean less funding for transit projects. What is not clear is how much less.
The budget does nothing to address the need for operational funding to help transit agencies still struggling to recover from the COVID-19 pandemic. Municipalities are facing muti-million-dollar transit deficits, leading to service cuts and fare increases that are hitting youth, low-income and racialized communities the hardest.
Public transit is a core public service that provides affordable transportation, keeps our communities connected, supports good jobs and cuts greenhouse gas emissions. Public transit is nation-building infrastructure that meets the Carney government’s stated goals of strengthening Canada’s economy and advancing climate action. It should be a priority, not on the chopping block.
CUPE is calling for transparency on how much dedicated public transit funding is being cut, and for the federal government to prioritize public transit infrastructure projects. Investing in public transit is an investment in people, climate action and a strong Canadian economy.