CUTA Calls for Much Needed Transit Funding in 2024 Federal Budget

The Canadian Urban Transit Association (CUTA) has submitted recommendations to Finance Canada for the 2024 federal budget, putting a spotlight on the need for funding for public transit infrastructure and enhanced safety measures across the country.

The federal government is planning to introduce the $3 billion annual permanent public transit fund in 2026 in order to support public transit infrastructure expansion and to ensure state of good repair for existing infrastructure.

CUTA is urging the government to introduce a $500 million portion of the fund in the 2024 budget as well as to open intake and funding commitments in 2024 for the remainder of the fund as a result of aging infrastructure and rising demand spurred on by the country’s growing population.

“Public transit is the backbone of sustainable urban development, and the federal government has a vital stake in maintaining and expanding Canada’s urban mobility infrastructure,” said Marco D’Angelo, CUTA president and CEO. “With the government’s collaboration and leadership, we can ensure a resilient, safe, and reliable public transit system that meets the needs of Canada’s growing communities.”

CUTA noted that the year 2023 saw an increase in incidents of violence and social disorder on transit, which impacted transit workers and riders.

As a result, CUTA urged the federal government to establish an application-based transit safety and security fund, with a minimum of $75 million annually for two years.

This was done to help transit agencies prevent, combat, and respond to safety and security incidents on their systems. Transit agencies also require urgent support for staffing, training, station enhancements, public awareness campaigns and other safety and security measures.

Canada’s public transit systems play a key role in supporting Canada’s growing communities and require a reliable and sustainable funding strategy as a result. In 2023, public transit systems faced unfunded operational shortfalls estimated at more than three quarters of a billion dollars that threatened their ability to serve communities effectively.

Transit systems risk service cuts or fare increases at a time when affordability is a chief concern without government support. CUTA noted that communities across Canada risk heightened road congestion, commuter dissatisfaction, and less frequent and reliable transit services.

The organization is also calling on all levels of government to engage in a national conversation on public transit operational funding.