OC Transpo getting $180M in funding to maintain, upgrade fleet infrastructure

OC Transpo bus leaving Marketplace Station in Barrhaven. (Peter Szperling/CTV News Ottawa)

The federal government will be giving Ottawa’s transit system $180 million in funding over the next ten years to improve and maintain its buses and trains.

Federal ministers made the announcement in a news conference at the new Line 2 Corso Italia O-Train station Monday.

The government will be providing OC Transpo with $18 million per year “providing predictable and long-term funding, tied to greater density near transit” through the Canada Public Transit Fund’s Baseline Funding Stream starting in 2026.

“Funding will upgrade, replace, or modernize Ottawa’s public transit infrastructure, and maintain it in a state of good repair,” a news release said.

The announcement provides money for the city for infrastructure but does not explicitly provide funding for operations.

Ottawa Mayor Mark Sutcliffe has been pushing federal officials through his “Fairness for Ottawa” campaign to provide the money for the city with OC Transpo facing a $120 million funding shortfall.

Sutcliffe says the money will help close the gap on Ottawa’s transit shortfall, saying the deficit identified in the last budget is made up of several elements, including operations and capital funding.

“The $180 million will have a direct budget impact on the city of Ottawa,” Sutcliffe said at the news conference.

“When we receive funds like this from the federal government, frankly, cash is cash. We can apply it and it closes the gap.”

The 2025 City of Ottawa budget includes a $36 million line item earmarked for “expected funding from senior levels of government.” The Ontario government has indicated it would provide transit funding if the federal government did, though no announcement has so far been made.

“It gives me confidence to know that going forward that if we received similar support from the provincial government, we’ll be able to grow and invest in public transit in Ottawa without having to make much more difficult decisions,” Sutcliffe said.

Kanata-Carleton MP Jenna Sudds said the province is traditionally responsible for operational funding.

“Historically the federal government does not provide money for operations. That’s up to the provincial government,” Sudds said.

Sutcliffe added that “in the weeks ahead” he expects he will be able to work with the provincial government “on a solution for Ottawa.”

Premier Doug Ford is expected to call a provincial election on Wednesday, effectively putting any funding announcements on hold until this spring. Parliament being prorogued until March and the looming possibility of a federal election also raises the question as to whether the next government will commit to the money.

The baseline funding stream gives money for “capital and non-capital investments” for public transit and active transportation infrastructure for various public transit projects around the country.

The federal government says the city will have to submit a capital plan and formally sign an agreement.

Councillor wants to see increased O-Train frequency

Coun. Tim Tierney reacted to the announcement on Newstalk 580 CFRA’s Ottawa Now with Kristy Cameron.

The Beacon Hill-Cyrville ward councillor says he’s hoping the money can bring more frequent service during off-peak hours on the Line 1 O-Train. OC Transpo reduced midday service on the Confederation Line from every five minutes to every 10 minutes last fall.

The decision came with heavy blowback from transit activists and some city councillors, who were concerned it could further reduce ridership. OC Transpo argued the move would save the transit service about $600,000.

Tierney says he’s been seeing and hearing from constituents of increasing volumes and even overcrowding on trains.

“I am witnessing it all the time now. It’s unfortunate we didn’t find that harmony for such a small amount of money,” he said. “I think there’s still a lot of work to be done. The volumes are back, the parking is too expensive, people need the train.”

Tierney, who serves as the chair of the city’s transportation committee, had previously proposed seven minute headways on Line 1.

“I am not satisfied with, ‘lets wait a few months and we can piecemeal add on trains.’ I think we need at minimum to get to the seven minute mark effective immediately and hopefully with this funding today we can start that conversation right out the gate.”

A City of Ottawa spokesperson told CTV News Ottawa in December that it would be reporting ridership data to the transportation committee and provide a recommendation about future service levels.

The next meeting is scheduled for Feb. 13.