The Rural Transit Solutions Fund supports the development and expansion of locally-driven transit solutions in rural, remote, Indigenous and Northern communities. The program helps residents access essential services, employment, education, healthcare and social connections.

The Fund recognizes the diversity of Canada's rural and remote communities and supports various transit models including fixed-routes, on-demand transit and micromobility services. A minimum of 10% of the total $250 million funding envelope is allocated to projects that benefit Indigenous populations and communities.

Two funding streams:

Stream 1: Planning and Design Projects

• Grants up to $50,000 for transit planning and design activities
• Supports feasibility studies, route assessment, public engagement, needs analysis
• Helps communities develop transit solutions appropriate for local contexts

Stream 2: Capital Projects

• Up to $10 million for organizations with a minimum 2 years of transit experience OR completed transit feasibility study after January 1, 2020
• Up to $250,000 for organizations with less than 2 years experience AND no recent feasibility study
• Funds vehicles, infrastructure, accessibility upgrades, zero-emission transition costs

Eligible capital expenses (for reference):

• Vehicles (buses, vans, zero-emission vehicles, small crafts)
• Fixed assets (bus stops, shelters, signage, accessibility infrastructure)
• Professional fees (project management, engineering, design, RFP support)
• Active transit components (connecting pathways, bike infrastructure, lighting)
• Micromobility (e-bikes, parking/charging stations)
• Indigenous consultation costs
• Start-up expenses (limited to 15% of federal contribution)