Capital Project Applications are now being accepted under the Active Transportation Fund!

1. Active Transportation Fund – Capital Projects

The Active Transportation Fund aims to advance the objectives of the Canada Public Transit Fund, and those embedded within Canada’s National Active Transportation Strategy, and Canada’s Strengthened Climate Plan. As such, the ATF will aim to support projects that:

• Increase the use of active transportation relative to car travel and increase the use of public transit by supporting first and last kilometer connections to existing and planned infrastructure;
• Increase affordability by providing economic value to communities and providing cheaper travel options over vehicular travel;
• Support efforts to mitigate climate change and improve climate resilience by reducing road congestion and cutting air and noise pollution; and
• Improve active transportation options for all, especially Indigenous People and equity-deserving groups to ensure people of all ages and abilities can access jobs and services.

Capital Projects Eligible for Funding

Capital projects refer to new infrastructure construction, enhancement of existing infrastructure, and fixed design and safety features that encourage increased active transportation. For a capital infrastructure project to be eligible for funding, it must include the acquisition, enhancement, modernization, rehabilitation, construction, expansion, restoration, renovation, repair, refurbishment, or replacement of active transportation infrastructure or networks.

Eligible capital projects may include:

• Building or enhancing infrastructure for active transportation, such as multi-use paths, sidewalks, footbridges, separated bicycle lanes, and connections to other roadways (this could include recreation trails provided they can also be used for transportation, i.e. connecting to destinations, services, or amenities);
• Enhancing active transportation infrastructure, including design considerations in which there may be no net gain in kilometers of infrastructure, but include quality improvements that support greater usage;
• Building or enhancing design features and facilities which promote active transportation, such as storage facilities, lighting, greenery, shade, and benches;
• Building or enhancing safety features which promote active transportation, such as crosswalks, speed bumps, fences, and wayfinding signage.

Ineligible projects include:

• Proposals to build or enhance infrastructure for which the primary users would be passenger and commercial vehicles;
• Costs related to furnishing and non-fixed assets, which are not essential for the operation of the assets included in the project.

Eligible Recipients

An applicant must be a legal entity capable of entering into legally binding agreements. To be considered an eligible recipient, applicants must fit within one of the following categories:

• A municipal, local or regional government established by or under provincial or territorial statute;
• A provincial or territorial government;
• A public sector body that is established by or under provincial or territorial statute or by regulation or is wholly owned by a province, territory, municipal or regional government, including, but not limited to:
  • Municipally-owned corporations (for example, autonomous organizations owned by municipalities, used to produce or deliver local public services outside the local bureaucracy);
  • A provincial or territorial organization that delivers municipal services (for example, public utilities, community health services, economic development bodies);
  • Any other form of local governance that exists outside of the municipality description (for example, local service districts);
• A federally or provincially incorporated not-for-profit organization or charity.

Eligible applicants are invited to submit a project application through Housing, Infrastructure and Communities Canada’s Applicant Portal from December 12, 2024 to February 26, 2025. Indigenous applicants can submit their applications until April 9, 2025. The Step-by-Step Guide for Capital Projects provides comprehensive instructions on how to register for a Housing, Infrastructure and Communities Canada Applicant Portal Account, complete the application form and submit the required supporting documents.

2. Rural Transit Solutions Fund: Capital Projects Stream

The Rural Transit Solutions Fund, under the Canada Public Transit Fund, supports the development and expansion of locally driven transit solutions, by helping residents of rural, remote, Indigenous and Northern communities conduct their day-to-day activities, like access services, go to work, school, medical appointments, and visit loved ones. 

Housing, Infrastructure and Communities Canada recognizes the diversity of Canada’s rural and remote communities and their unique transit needs. As such, the Rural Transit Solutions Fund supports a range of public transit models including fixed-routes, on demand transit and micromobility services, such as e-bikes. Eligible organizations representing these communities can seek support through two program streams depending on the nature of their project:

• Capital Projects stream: Through this stream, eligible applicants can seek contributions of up to $10 million to help cover tangible capital assets primarily for public use such as the purchase of vehicles and supporting infrastructure.

The intake period for Capital Projects is currently open. Applications must be submitted via Housing, Infrastructure and Communities Canada’s online applicant portal by Tuesday, March 4, 2025 (3:00 p.m. EST) and Tuesday, April 8, 2025 (3:00 p.m. EST) from Indigenous applicants.

Who can apply?

To be eligible for the Rural Transit Solutions Fund, applicants must be a legal entity capable of entering into legally binding agreements, be in good standing with the Government of Canada, and fall into one of the following categories:

1. A provincial or territorial government;
2. A municipal or regional government created by or under provincial or territorial statute;
3. A public sector body created by or under provincial or territorial statute or by regulation or is wholly-owned by a province, territory, municipal or regional government. This includes but is not limited to:
   • Municipally-owned corporations (e.g., autonomous organizations owned by municipalities that provide local public services);
   • Provincial or territorial organization delivering municipal services (e.g., public utilities, community health services, economic development agencies); and,
   • Any other form of local governance outside traditional municipalities (e.g., local service districts).
4. A federally or provincially incorporated not-for-profit organization or charity;
5. An Indigenous benefiting organization or recipient, including:
   • A band council as defined in section 2 of the Indian Act;
   • A First Nation, Inuit or Métis government or authority established pursuant to a Self-Government Agreement or a Comprehensive Land Claim Agreement with Canada, which has been ratified by federal legislation;
   • A First Nation, Inuit or Métis government created by federal, provincial, or territorial legislation that includes a governance structure.
6. A federally or provincially incorporated not-for-profit organization whose primary purpose is to improve Indigenous outcomes; and,
7. An Indigenous development corporation.

The following entities are not eligible to apply:

1. Individuals and private citizens;
2. Federal entities, including federal Crown corporations; and,
3. Private sector entities.

Not sure if your organization is eligible? Contact us.

What types of projects can receive funding under the Capital Projects stream?

Eligible organizations with at least two years of transit experience, including local governments working in partnership with experienced transit organizations, or a completed public transit feasibility study (dated after January 1, 2020) can apply for a federal contribution of up to $10 million. Organizations with less than two years of experience and no recent feasibility study may still qualify for up to $250,000 in federal funding.

The Rural Transit Solutions Fund, under the Canada Public Transit Fund, supports the development and expansion of locally driven transit solutions, by helping residents of rural, remote, Indigenous and Northern communities conduct their day-to-day activities, like access services, go to work, school, medical appointments, and visit loved ones.

Housing, Infrastructure and Communities Canada recognizes the diversity of Canada’s rural and remote communities and their unique transit needs. The Rural Transit Solutions Fund supports a range of public transit models including fixed-routes, on demand transit and micromobility services, such as e-bikes.

To be eligible under the Rural Transit Solutions Fund, your project must meet at least one of the following objectives:

1. Increase use of public transit relative to car travel
2. Contribute to climate change mitigation and resilience 
3. Improve public transit options for all, especially equity-deserving groups

For applicants serving an area with a population greater than 50,000:

The Rural Transit Solutions Fund supports transit projects in rural and smaller communities, including smaller towns and villages within Census Metropolitan Areas (CMA), if the project targets rural needs and meet the objectives of the Fund. Applicants serving communities with populations between 50,000 and 150,000 must demonstrate how their project specifically targets their rural population.

Projects from applicants serving a population greater than 150,000 living mainly in the urban area of a CMA, are outside the scope of the Rural Transit Solutions Fund.