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More Municipalities will Benefit from Transit Funding

News Release

More Municipalities will Benefit from Transit Funding

Ontario Building a Better Transportation System to Connect People to Places

Ministry of Transportation

Today, Caroline Mulroney, Minister of Transportation, announced Ontario is investing $365.3 million to expand and improve local transportation across the province.

"Investing in public transit is part of our plan to get Ontario moving," said Minister Mulroney. "From transit investment in the Greater Golden Horseshoe to adding more service in rural and northern communities - our government is committed to improving transit in every corner of the province."

This year's Gas Tax program benefits the most municipalities ever, with 111 receiving funding to improve public transit in 148 communities across the province. Gas Tax funding can be used to upgrade infrastructure, increase accessibility, purchase transit vehicles, add more routes and extend hours of service.

"We're making life easier for millions of people across Ontario by helping to build new and reliable transit faster," said Minister Mulroney.

The Gas Tax program is in addition to the regional transportation plans Ontario is developing to help fight gridlock, improve outdated infrastructure and keep goods and services moving across the province.

Quick Facts

  • Funding for Ontario’s Gas Tax program is determined by the number of litres of gasoline sold in the province. Municipal allocations are based on two cents per litre of provincial Gas Tax revenues.
  • This year, Ontario is making enhancements to the Gas Tax program that will cut burdensome red tape and make it easier and faster for municipalities to access funding. This includes removing the baseline spending requirement for municipalities and allowing them to submit a digital copy of their municipal by-law.
  • The province’s first draft regional transportation plan was released for southwestern Ontario in 2020. Regional planning is also underway for the Greater Golden Horseshoe, Northern and eastern Ontario.

Background Information

Additional Resources


“The Ontario Public Transit Association is pleased that the Ontario government is continuing to support public transit through the Gas Tax program. This important investment in public transit will support healthy communities and improve quality of life for people across the province.”

Karen Cameron

CEO, Ontario Public Transit Association.

“The Canadian Urban Transit Association congratulates the Ontario government for announcing positive findings from its review of the provincial Gas Tax program. This is a best practice program in Canada that contributes to accessible and reliable mobility services for all Ontarians.”

Marco D’Angelo

President and CEO, Canadian Urban Transit Association.

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