Deputy Prime Minister announces $1.2 billion for Toronto, enabling purchase of new Line 2 subway cars

From: Department of Finance Canada

News release

November 29, 2024 - Toronto, Ontario - Department of Finance Canada

New public transit gets Canadians to where they need to be, creates new Canadian manufacturing and construction jobs, reduces pollution and congestion, makes life more affordable, and keeps Canadians and communities connected as they grow. That is why the federal government is investing in better public transit.

Today in Toronto, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that the Toronto Transit Commission (TTC) will receive nearly $1.2 billion over the next decade through the Baseline stream of the new Canada Public Transit Fund. She was joined by the Honourable Peter Bethlenfalvy, the Minister of Finance of Ontario, the Honourable Prabmeet Sarkaria, the Minister of Transport of Ontario, and Her Worship Olivia Chow, Mayor of Toronto. The Canada Public Transit Fund is the largest public transit investment in Canadian history with $3 billion in annual federal funding provided to communities across the country.

The City of Toronto will use $758 million of this new funding to support new subway cars for the TTC’s Line 2, which is a 26-kilometre subway line connecting residents from Etobicoke to Scarborough. Line 2 needs new subway cars to maintain existing service and expand to meet growing capacity needs. Investing in 55 new subway cars will help Torontonians get around quickly, affordably, and reliably.

Since 2015, the federal government has already invested over $30 billion to build better public transit in Toronto and across the country. Today’s investment bolsters the government’s commitment to help workers get where they need to go, all while helping put a little more money in their pocket.

Quotes

“Our government knows improving public transit is essential to ensuring our economy reaches its full potential. The TTC needs new subway cars to keep up with the growing transit demands of our growing city. I am so pleased that just months after announcing our new Canada Public Transit Fund, that we will have reached a deal with Toronto to deliver better public transit.”

- The Honourable Chrystia Freeland,
Deputy Prime Minister and Minister of Finance

“We launched the Canada Public Transit Fund to partner with communities across the country on projects that will support Canadians’ transit needs for decades to come. Our announcement today is one such example as the new subway cars for TTC’s Line 2 will not only improve existing services for those travelling between Etobicoke and Scarborough but will also allow TTC to expand and meet the growing needs of our country’s largest city.”

- The Honourable Sean Fraser,
Minister of Housing, Infrastructure and Communities

“When Toronto is moving, Canada is growing. Today’s announcement from the Federal Government is a welcome investment in Toronto that unlocks additional funding from the Province. This historic investment in transit will provide needed subway cars on Line 2, moving people affordably today and preparing for future population and economic growth. By partnering and funding one third each, it shows how we can work together to keep people moving.” 

- Her Worship Olivia Chow,
Mayor of Toronto

Quick facts

  • Total federal funding to Toronto for public transit since 2015 = $11.56 billion. Beyond today’s announcement, this includes:

    • November 2023: New TTC streetcars.
    • December 2022: Capacity improvements at Bloor-Yonge station.
    • 2021: New Scarborough Subway Extension, Eglinton Crosstown West, Ontario Line, and Yonge North Subway Extension.

  • Since 2015, the federal government has committed over $30 billion for public transit and active transportation projects. These historic investments have enabled close to 2,000 projects across the country.

  • Budget 2024 announced that any municipality seeking to access long-term, predictable funding through the new Canada Public Transit Fund, will need to take actions that directly unlock housing. This includes measures to:

    • Eliminate all mandatory minimum parking requirements within 800 metres of a high-frequency transit line;
    • Allow high-density housing within 800 metres of a high-frequency transit line;
    • Allow high-density housing within 800 metres of post-secondary institutions; and,
    • Complete a Housing Needs Assessment for all communities with a population greater than 30,000.

  • Across the country, the Canada Public Transit Fund will provide:

    • An expected average of $2 billion per year, or $20 billion over 10 years, for Metro-Region Agreements.
    • An expected average of $500 million per year, or $5 billion over 10 years, in Baseline Funding.
    • An expected average of $500 million per year, or $5 billion over 10 years, in Targeted Funding.

  • Federal funding is conditional on the submission and approval of a capital plan and the signing of a funding agreement.

Associated links

Contacts

Media may contact:

Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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