ATU Canada condemns $5 Billion cut to Federal transit funding

For Immediate Release

ATU Canada condemns federal transit funding cuts

ATU Canada strongly condemns the federal government’s decision to cut $5 billion from previously promised public transit funding, warning that the move shifts costs onto working people and pushes responsibility onto municipalities already facing a property tax budget crisis and transit fare box hikes.

“Prime Minister Mark Carney is breaking a promise that working people were counting on,” said John Di Nino, President of ATU Canada. 

“Transit workers keep our cities moving, yet this government is choosing cuts over communities and fare hikes over fairness. That is a betrayal of riders, workers, and every Canadian who depends on public transit.”

ATU Canada says this cut is the first clear sign of federal downloading onto cities, which are already stretched by rising infrastructure costs and pressure to raise property taxes. Removing dedicated transit funding will force municipalities into impossible choices between delaying projects, cutting service, or hiking fares, all of which hit low-income riders and frontline transit workers hardest.

The problem began in the 2025 federal budget, when the dedicated Canada Public Transit Fund was folded into the broader Building Communities Strong Fund. Advocates warned this would undermine reliable transit funding. Those fears are now confirmed with the removal of $5 billion in committed dollars.

Public transit is one of the most effective ways to cut emissions, lower household costs, and connect people to jobs, schools, and housing. Pulling federal support mid-stream creates instability for cities and threatens urgently needed transit and transit-oriented housing projects.

“If this government is serious about affordability and action on the climate crisis, the math is simple,” Di Nino added.“Invest in transit, protect workers, and stop downloading the bill onto cities and riders.”

ATU Canada is calling on the federal government to reverse these cuts and restore stable, dedicated funding for public transit.