Canada’s 2017 budget focuses on transit infrastructure

Building a world-class infrastructure that will improve public transit is a priority under Canada’s federal 2017 budget. “Budget 2017 is the next step in the Government’s long-term plan to create jobs and strengthen the middle class,” the Department of Finance Canada says.
Under the budget, for VIA Rail’s operations, it is proposed CAD 867.3 million (USD 650 million) over three years on a cash basis, starting in 2017–18, to support its operations and capital requirements.
A new infrastructure plan for Canada needs new partnerships under bilateral agreements that will be negotiated in the coming months, and provide funding for public transit infrastructure, including new construction and rehabilitation. The Government will provide funding for projects on the following basis: up to 40 per cent federal funding for projects undertaken with municipal and not-for-profit partners; up to 50 per cent federal funding for projects with provincial partners; and up to 75 per cent federal funding for projects with Indigenous partners and projects with territorial partners. For public transit in provinces, the Government will provide up to 50 per cent of eligible costs for rehabilitation projects (with funding for rehabilitation projects capped at 15 per cent of total public transit funding), while funding for new public transit construction and expansion projects will be cost-shared at up to 40 per cent federal funding.
Through the Public Transit Infrastructure Fund, Budget 2016 focused on making immediate investments of USD 2.55 billion over three years, to upgrade and improve public transit systems across Canada. To support the next phase of ambitious public transit projects, the Government will invest USD 15 billion billion over 11 years through bilateral agreements with provinces and territories, with provincial and territorial allocations determined using a formula based on ridership (70 per cent) and population (30per cent).


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