CUTRIC Report: Strategic advocacy secures $25B for transit and navigates trade uncertainty under new federal administration
Toronto, ON — December 2025
The Canadian Urban Transit Research & Innovation Consortium (CUTRIC) has released a pivotal report titled Navigating transit funding and trade uncertainty, outlining the outcomes of strategic federal advocacy from May to December 2025. The report details how the transit sector has navigated a shift in federal administration under Prime Minister Mark Carney and the economic volatility of “Trumponomics.”
Following intense advocacy efforts, CUTRIC confirms that the Government of Canada’s Budget 2025 Update has protected $25 billion for the Canada Public Transit Fund (CPTF) over a 10-year period, with $5 billion designated as baseline funding.
Additionally, the report highlights a major win for the sector: transit agencies will now have access to the $51 billion Building Community Strong Fund (BCSF), which includes a $17 billion stream for housing-enabling infrastructure.
“This period has represented a pivotal turning point for Canadian public transit. Through targeted strategic advocacy, we have moved the needle from a position of high risk to one of conditional stability. The protection of the CPTF and access to the BCSF proves that evidence-based decision-making is critical to securing the future of our industry.”
— Josipa Petrunic, President & CEO of CUTRIC
The report identifies three major risks the industry faced in 2025: potential funding cutbacks, rising costs due to trade wars and tariffs (Trumponomics), and new Canadian content rules. To mitigate these risks, CUTRIC launched the Foreign Affairs, Commerce and Trade (FACT) Task Force and successfully advocated for transit projects to be elevated to “Major Project” status to accelerate approvals.
Looking Ahead to 2026
CUTRIC is urging the transit sector and government to focus on three critical imperatives:
Securing jobs through “Made-for-Transit” Canadian content rules and recognizing transit as a driver of national economic security alongside auto and aerospace.
Pushing for a permanent zero per cent sectoral tariff under CUSMA to shield agencies from North American trade war volatility.
Modernizing funding intake processes to ensuring the promised funds flow efficiently starting April 1, 2026.
CUTRIC’s report emphasizes that while funding commitments have been secured, the focus must now shift to delivery and protecting the integrated North American supply chain to prevent skyrocketing vehicle costs from stalling decarbonization efforts.
Read the Full Report
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About CUTRIC
The Canadian Urban Transit Research and Innovation Consortium (“CUTRIC”) is a socially responsible non-profit organization that spearheads, designs, and launches technology and commercialization projects that advance next-generation zero-carbon mobility and transportation solutions across Canada. CUTRIC’s members include municipal transit agencies and large transit manufacturers that help support the public transit supply chain.
