Only money for Ottawa transit in fall economic statement is cash to study 2 km of Gatineau-Ottawa tram

Gatineau STO Train

The federal government's fall economic statement includes more than $30 million in funding for public transit in the Ottawa-Gatineau region, but none of it is earmarked for operations.

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The funding, $31.6 million over three years, is earmarked for feasibility studies into a two-kilometre portion of the Gatineau-Ottawa tram project on the Ontario side of the Ottawa River. The projected funding is approximately $9 million in 2025-26, $12 million in 2026-27 and $10 million in 2027-28.

"This funding builds on the joint investment with Quebec and means the federal government has now put forward the funding required to complete feasibility studies for the proposed tram’s entire 24-kilometre route," the document says.

The federal and Quebec governments reached an agreement in June to provide $163.5 million for the planning stages of the Quebec side of the tram route.

The project aims to build a tramway connecting Aylmer to downtown Gatineau and downtown Ottawa. It would cross into Ottawa over the Portage Bridge and, at that point, either run along Wellington Street or under Sparks Street in a newly constructed tunnel. The National Capital Commission has expressed preference for running the tram on Wellington Street. Preparatory work for construction is scheduled to begin in 2026 and the project is expected to be complete by 2032.

Line in 2025 city budget still unfilled

The City of Ottawa's 2025 budget includes a $36 million line item for transit that is earmarked for "expected funding from senior levels of government." The fall economic statement does not include any reference to funding for operating OC Transpo.

The section titled, "Better Public Transit in the National Capital Region" only touts previous government spending, while simultaneously calling infrastructure in the city underfunded.

"A historic lack of investment in transportation infrastructure in the National Capital Region has resulted in long commutes, truck congestion that slows the flow of goods, and poor public transit connectivity," it says. "Since 2015, the federal government has made investments to catch-up infrastructure, particularly public transit, for Ottawa and Gatineau residents and visitors."

It references the $1.1 billion provided to the City of Ottawa for Stage 2 of LRT and the $163.5 million in funding to study the Gatineau-Ottawa Tram in partnership with the Quebec government.

To cover the gap locally, OC Transpo is raising fares, pulling money from the capital fund, and hiking the transit levy by eight per cent.

Mayor Mark Sutcliffe's "Fairness for Ottawa" campaign calls for millions of dollars from both the federal and provincial governments to cover what he calls years of underpayments to the city in the form of transit funding and payment in lieu of taxes on federal buildings in the capital. 

The fall economic statement was delivered the same day Chrystia Freeland abruptly resigned from the Liberal cabinet, casting doubt and confusion on the future of Prime Minister Justin Trudeau's government.