March 27, 2026

The short version: there are some meaningful wins, but several of our most important asks were not addressed. We will be continuing to press on the outstanding items.

What was addressed (at least in part)

• One Fare – Extended: Ontario extended the One Fare program for an additional two years. Since launching in 2024, the program has saved riders nearly $233 million and enabled approximately $72 million free transfers across participating agencies. The government has also signalled its intention to introduce legislation to explore expanding free transfers, simplifying fares, and enhancing specialized transit. This is a positive outcome for riders and for transit agencies serving cross-boundary commuters.
• Rural Transit – Ontario Transit Investment Fund doubled: The Ontario Transit Investment Fund (OTIF) has been doubled from $15M to $30M over three years beginning in 2026-27. These funds support the startup and growth of transit services in rural communities, including new bus services, on-demand shared rides, and door-to-door transportation. OPTA has consistently said that transit needs stable, predictable funding in order to establish and grow ridership. OPTA will work with members and the provincial government to ensure its success.
• Capital Infrastructure: Budget 2026 reconfirmed the province’s $63B, 10-year transit capital program, including four GTA subway projects and multiple LRT projects. The province also announced an increase in its investment in 55 new Line 2 subway trains to nearly $1 billion, matched by the federal government. This is good news for the industry broadly, though it remains focused on the major GTA megaprojects.

• Gas Tax for Transit: OPTA made a clear, evidence-based case that the Dedicated Public Transit Fund — frozen at approximately $380M since 2019 — has lost roughly one-third of its real value to inflation, and should be increased to approximately $725M to restore its purchasing power. Budget 2026 was silent on this. The erosion of this program continues to widen the gap between what agencies receive and what they need to maintain service levels.
• Provincial Match for the Canada Public Transit Fund (CPTF) Baseline Stream: This was the centrepiece of our budget submission. Without a provincial matching mechanism at 40% of eligible capital costs — consistent with the approach used for ICIP — Ontario transit agencies outside the major GTA megaprojects risk being unable to leverage the federal CPTF baseline stream for state-of-good-repair and fleet renewal. No such mechanism was announced. The broader challenges affecting the CPTF — including federal cuts and delays — are issues that must also be addressed in Ottawa.
• Transit Safety and Security: We asked for a dedicated funding envelope to address incidents of violence and social disorder on transit — covering enforcement, outreach, technology, and capital investments. No dedicated transit safety funding was announced, though the Budget speech did reference new investment in police and community safety initiatives more broadly. This remains an area we will continue to pursue.
• Operational Funding Gaps: The structural pressure facing transit agencies — rising costs, aging fleets, and flat provincial contributions — was not addressed in Budget 2026. Many of our members are drawing down municipal reserves in ways that are simply not sustainable. Without provincial action, fare increases and service cuts become more likely outcomes for communities across Ontario.

• The budget also referenced a proposed Northland Rideshare Pilot Framework, which would engage rideshare operators, the taxi sector, and municipalities to explore standardized guidelines along the Northlander corridor ahead of its return to service later this year. OPTA will be monitoring this development closely given its implications for transit agencies in northern communities.

• We are reviewing the full budget document and will have more to share with members in the coming days. OPTA will continue to engage with the Ministry of Finance and the Ministry of Transportation on the outstanding items — particularly the Gas Tax and the CPTF matching gap — and we will carry these asks forward as the province’s fiscal and policy environment continues to evolve.