Funding Through Ontario Transit Investment Fund Supports Five Projects Across 30 Communities
WATERLOO — The Ontario government is investing nearly $16 million to expand safe and reliable transportation options in smaller and rural communities across the province, supporting five transit projects designed to improve access to jobs, essential services and economic opportunities.
The funding, provided through the Ontario Transit Investment Fund (OTIF), will support transit improvements in 30 communities, including new bus services, on-demand transportation options and expanded local transit networks. The province said the investment is part of its broader effort to strengthen transportation infrastructure in underserved areas and support a more resilient economy.
“Our government is investing in safe and reliable transit that keeps people moving, strengthens communities and supports a stronger, more resilient and self-reliant economy,” said Prabmeet Sarkaria, Minister of Transportation. “No matter where you live, Ontarians deserve access to transportation they can depend on. Through the Ontario Transit Investment Fund, we are expanding transit options that connect people to jobs, housing and essential services.”
Waterloo Region Receives $3.4 Million for Transit Expansion
A major portion of the investment will support the Region of Waterloo, which will receive $3.4 million to introduce or expand transit services in Woolwich, Wellesley, Wilmot and North Dumfries.
The funding will help strengthen connections between rural townships and larger urban centres by improving access to employment, education, healthcare and community services. The expansion is expected to support Grand River Transit improvements and advance the region’s Township Transit Strategy.
“Through OTIF, our government is providing communities across the province with stable, predictable funding for transit services that will transform how people travel for years to come,” said Ric Bresee, Parliamentary Assistant to the Minister of Transportation. “Today, we’re demonstrating our commitment to supporting communities and non-profit organizations across Ontario as they deliver reliable transit services.”
The OTIF program supports the launch and expansion of transit initiatives led by municipalities, Indigenous communities and non-profit organizations. These projects include traditional bus services, flexible on-demand rideshare programs and door-to-door transportation services designed to meet the needs of communities where conventional transit options may be limited.
Province Expands Support for Rural Transportation Networks
Ontario said the latest investment builds on its plan to improve transportation access in rural, northern and underserved communities. As part of the 2026 Budget, the province doubled annual OTIF funding to $10 million and also highlighted the return of the Northlander passenger rail service to northeastern Ontario.
When OTIF was launched in 2024, the program provided up to $5 million annually in funding. The province has since increased support to up to $10 million annually over the next three years.
Municipalities, Indigenous communities and non-profit organizations are eligible to apply for OTIF funding. The province encourages applicants to work together through project teams to create coordinated, sustainable and integrated transit solutions.
Ontario also provides transportation support through programs such as the Gas Tax program and the Connecting Links program, which help municipalities improve transit systems and local road infrastructure. The Indigenous Transportation Initiatives Fund (ITIF) provides additional support for community-led transportation projects serving Indigenous peoples in urban, rural and reserve settings.
Leaders Highlight Economic and Community Benefits
Provincial and municipal leaders said reliable transportation plays an important role in supporting rural communities and strengthening regional economies.
“Reliable transportation is essential to strong rural communities. Through the Ontario Transit Investment Fund, our government is investing in the local transit connections that people need to access essential services and economic opportunities, and stay connected with family and loved ones,” said Lisa Thompson, Minister of Rural Affairs.
Waterloo Mayor Dorothy McCabe said improved transit connections would help residents access employment, education, services and cultural activities throughout the region.
“Strong transit connections help bring our communities closer together. Across Waterloo Region, people rely on dependable, low-cost transportation options to access jobs, education, services, cultural events, family and friends. This investment will help strengthen these connections and make it easier for residents and visitors to move throughout the region, support economic growth, and ensure our communities remain connected and accessible,” said McCabe.
Regional Chair of Waterloo Region Karen Redman said the funding will help deliver improved transit connections for residents living in and travelling to the region’s townships.
“The support from the Ontario Transit Investment Fund will help us deliver new and improved transit connections for residents living in and travelling to Waterloo Region’s townships. By supporting new and expanded Grand River Transit service, the Province is helping us improve access to jobs, services and community destinations while building a more connected and sustainable region. We are grateful for this partnership and the opportunity to move our Township Transit Strategy forward,” said Redman.
Investment Aims to Improve Long-Term Connectivity
Local representatives said expanding transit options will help close transportation gaps between rural and urban areas while supporting long-term growth.
“This exciting investment means residents in Woolwich, Wellesley, Wilmot and North Dumfries will have better access to jobs, schools and services in our larger municipalities. By closing the transit gap between our rural townships and urban centres, we’re making it easier for people to stay connected to their community while opening up new opportunities close to home,” said Mike Harris, MPP for Kitchener–Conestoga.
The province said continued investment in rural transit will help ensure communities remain connected while supporting workers, businesses and residents across Ontario.