Ontario Investing $16 Million to Help Smaller and Rural Communities Access Safe and Reliable Transit

Provincial investment will support five critical transit projects in northern and rural communities


WATERLOO — The Ontario government is investing nearly $16 million through the Ontario Transit Investment Fund (OTIF) to help small and remote communities build safe and reliable transit services. This investment will support five projects benefiting 30 communities, protecting Ontario’s economy and connecting more people to jobs and opportunities across the province.

“Our government is investing in safe and reliable transit that keeps people moving, strengthens communities and supports a stronger, more resilient and self-reliant economy,” said Prabmeet Sarkaria, Minister of Transportation. “No matter where you live, Ontarians deserve access to transportation they can depend on. Through the Ontario Transit Investment Fund, we are expanding transit options that connect people to jobs, housing and essential services.”

The OTIF supports the start-up and expansion of transit projects like new bus services, on-demand rideshare services and door-to-door transportation. The program is helping municipalities, Indigenous communities and non-profit organizations deliver reliable transportation services across the province, particularly in rural communities. This year’s funding will support new and expanded transit services across the province, including $3.4 million for the Region of Waterloo to introduce or expand transit services in Woolwich, Wellesley, Wilmot and North Dumfries.

“Through OTIF, our government is providing communities across the province with stable, predictable funding for transit services that will transform how people travel for years to come,” said Ric Bresee, Parliamentary Assistant to the Minister of Transportation. “Today, we’re demonstrating our commitment to supporting communities and non-profit organizations across Ontario as they deliver reliable transit services.”

Today’s investment builds on the province’s plan to strengthen transportation in rural, northern and underserved communities, including doubling annual Ontario Transit Investment Fund (OTIF) funding to $10 million in the 2026 Budget and bringing back the Northlander passenger rail service to northeastern Ontario.


Quick Facts

  • When OTIF launched in 2024, it included up to $5 million in annual funding. The province has now increased funding up to $10 million annually over the next three years.
  • Municipalities, Indigenous communities and non-profit organizations can apply for OTIF funding online. Applicants are encouraged to form project teams to deliver coordinated, integrated and sustainable transit services for their communities.
  • Ontario also provides funding to municipalities for transit and municipal roads through the Gas Tax program and the Connecting Links program.
  • The Indigenous Transportation Initiatives Fund (ITIF) provides funding for community-driven transportation related projects for Indigenous peoples in urban, rural and reserve settings across Ontario.