Feds promise billions in new funds to build, expand public-transit systems
The federal Liberal government is promising cashstrapped cities billions of dollars in permanent funding for their public-transit systems - though most of the money won’t start flowing until later in the decade.
Prime Minister Justin Trudeau made the $14.9-billion announcement Wednesday as he prepared for a virtual meeting with the mayors of Canada’s largest cities, many of them struggling to make ends meet due to the COVID-19 pandemic.
“These investments will support major public transit projects like subway extensions, help electrify fleets with zero-emission vehicles,” Trudeau said during a virtual news conference.
“They will also be used to meet the growing demand for walkways and paths for cycling and help rural and remote communities deliver projects to meet their mobility challenges.”
About $6 billion will be available to municipalities right away for projects that are ready to go, according to the government, while the remainder will go into a $3-billion per year fund that can be doled out on a project-by-project basis starting in 2026-27.
Exactly what needs towns and cities will have over the long term remains uncertain as municipal leaders consider how their communities will be after the pandemic, including the extent to which working from home will replace many people’s traditional commutes.
Trudeau acknowledged those uncertainties, but suggested the importance of public transit will continue to grow, particularly as governments at all levels move to curb greenhouse-gas emissions and fight climate change.
“There will be no question that cities will still be incredible, vibrant places for economic growth for jobs,” he said.
“Yes, there will be more working from home, but people will still want to be getting around and there may actually be less need for certain singleoccupant vehicles, and more use of better-quality, cleaner, and safer public transit.”
Edmonton Mayor Don Iveson, who is also chair of a group of mayors from
Canada’s largest cities and participated in Wednesday’s announcement, echoed that assessment in an interview with The Canadian Press.
“Until there’s mass vaccination, it will take some time for ridership to recover,” he said. “But even in the worst-case scenario, most of us are assuming transit ridership returning to normal within three to five years. And so these systems that we’re building will be here for generations to come.”
The money promised on Wednesday is intended for new systems and expansions, and will not specifically help municipalities struggling to pay the costs of operating publictransit systems during the pandemic, when many buses and subways are largely empty.
While the federal government and provincial counterparts stepped up to help cover many of those shortfalls last year, Iveson said discussions about assistance this year remain ongoing.
“The federal government very much understands the need economically and as a matter of fairness to local governments who really aren’t in a position to run deficits in the same way,” he said.
“So we do need that backstop support. Provinces got there last year, and we’ll need to work with them to get there again for 2021.”
Iveson nonetheless welcomed the promised funding as a win for municipalities that have called for long-term stability and predictability when it comes to building and expanding transit systems, as well as a way to help the economy and fight climate change.