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.
Quotes
"Safe and reliable transportation options are critical for Indigenous communities throughout the province. Our investments in Indigenous-led transportation initiatives are improving safety, accessibility, and economic opportunities while supporting community driven long-term, sustainable growth."
- Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation
"By doubling our investment in the Ontario Transit Investment Fund for the next three years, we're helping communities across the province, including our northern communities, build safe, reliable transportation - transportation that people depend on every day to connect them to jobs, services and opportunity. This investment supports transit solutions that strengthen local economies and improve quality of life in Ontario."
- George Pirie, Minister of Northern Economic Development and Growth
"Small towns and rural communities throughout Ontario depend on consistent and reliable transit for people to get to work, make it to a doctor's appointment or to visit family. As more people choose to call rural Ontario home, this targeted investment is important so people in need of transit options can have confidence in their mobility choices."
- Lisa Thompson, Minister of Rural Affairs
"I've seen firsthand how investments through the Ontario Transit Investment Fund are making a meaningful difference for people in our rural communities. Expanding access to reliable transportation helps residents get to work, attend appointments, and stay connected to the services they depend on. I'm pleased to see our government doubling this funding, building on that success and ensuring even more communities can benefit from safe, dependable transit options."
- Steve Pinsonneault, MPP for Lambton-Kent-Middlesex
"We see the importance of these commitments first-hand. This funding is essential to sustaining and expanding Middlesex County Connect, our inter-community transit service. I'm happy to share that last year, the service provided more than 14,000 trips, up from 11,000 in 2024. Building on this success, we introduced another route at the start of this year. For our residents, this means greater access. For our employers, it means better labour mobility. And for our communities, it means growth that is connected, coordinated, and sustainable."
- Susan Clarke, Mayor of Adelaide Metcalfe and Warden of Middlesex County
"Doubling the Ontario Transit Investment Fund is a smart investment in Ontario's workforce and economy. For many businesses in rural and underserved communities, reliable transit is the difference between unfilled jobs and growth. This funding reduces congestion, strengthens labour force participation, and supports economic growth across the province."
- Daniel Tisch, President & CEO, Ontario Chamber of Commerce
"When Ontario succeeds, the Toronto region succeeds. Ensuring that communities across the province, including those in the areas surrounding the Toronto region, are connected to more seamless, integrated and multimodal journeys is a critical way to support commuters, boost productivity, alleviate congestion and grow the province's economy."
- Giles Gherson, President & CEO, Toronto Region Board of Trade
"OPTA congratulates the Government of Ontario's continued investment through the Ontario Transit Investment Fund, which reflects an understanding of the role that transit plays in connecting communities and supporting riders across Ontario."
- Karen Cameron, CEO, Ontario Public Transit Association
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