Investment $400 million Benefits Offers the potential to reduce greenhouse gas emissions and smog in urban areas by improving services and offering Canadians greater flexibility in their transportations options. Investments make public transit more attractive and can induce a shift from auto travel to more fuel-efficient and cost-effective transit. Increased use of public transit can lead to a reduction of congestion levels, further improving energy use and air quality.  Public transit also promotes economic activity and competitiveness of urban areas.

Public Transit Fund

Through the Public Transit Fund, the Government of Canada has provided $400 million over one year, to support investments in public transit infrastructure in cities and communities. Modelled on the federal gas tax, Public Transit Funds are allocated to provinces and territories on a per capita basis. These funds support environmental outcomes of cleaner air and lowered greenhouse emissions.

Allocation to Provinces and Territories

Transfer of Funds for Public Transit

• Canada-Alberta
• Canada-British Columbia-Union of British Columbia Municipalities
• Canada-Manitoba
• Canada-New Brunswick
• Canada-Newfoundland and Labrador
• Canada-Northwest Territories
• Canada-Nova Scotia
• Canada-Nunavut
• Canada-Ontario-Association of Municipalities of Ontario-City of Toronto
• Canada-Prince Edward Island
• Canada-Quebec (final agreement)
• Canada-Saskatchewan
• Canada-Yukon

Allocation to Provinces and Territories

NOTE: As specified in Budget 2006, a one-time payment to provinces and territories was also made available through the $900 million Public Transit Capital Trust in support of capital investments in public transit and infrastructure both as a means to reduce traffic congestion and to reduce carbon dioxide and other emissions.

For more information about the Public Transit Capital Trust, please visit the Department of Finance Canada's Web site: www.fin.gc.ca/news06/data/06-048_1e.html.