Ottawa Mayor Mark Sutcliffe and Ottawa MPs David McGuinty and Jenna Sudds announced the investment of over $18 million in annual funding for the City of Ottawa on Monday.

Through the new Canada Public Transit Fund’s Basline Funding stream, OC Transpo will receive annual funding amounting to over $180 million over 10 years to upgrade, replace and modernize Ottawa’s public transit system. 

Beginning in 2026 and continuing until 2036, the funding will help increase affordability and housing supply, leading to better-connected and cohesive communities oriented around transit options, a memo from the City of Ottawa said.

“The funding announced today will help Ottawa in a number of important areas, including closing the systemic gap in our transit budget,” Sutcliffe said at the announcement. “The transit funding ensures we can maintain and improve service for our rapidly growing city. 

“We will continue to work with the federal government on a number of other shared priorities in the weeks ahead, as we continue to tackle financial pressures and strive to build a better city for all our residents.”

The 2025 City of Ottawa Budget involves substantial investments in public transit but requires an increase in transit fares and includes a $36 million gap in funding that the municipality hoped would be filled by upper levels of government. 

OC Transpo will receive $180,231,660 over ten years, conditional on the City of Ottawa submitting a capital plan and the subsequent signing of a funding agreement. 

Ottawa-Vanier MP Mona Fortier said that while public transit should “make life easier,” “we all know Ottawa’s transit system needs improvement.”

“Buses need to show up on time, and we need a reliable train system,” she said at the announcement. “That’s why the federal government is stepping up and working with the City of Ottawa to invest in real improvements—because you deserve a transit system that actually works when you need it.”

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