Budget 2025: CUTRIC urges Ottawa to fast-track zero-emission transit projects under the new $51 billion fund and elevate mass transit as 'Major Projects' to protect manufacturing jobs

OTTAWA, ON, Nov. 5, 2025 /CNW/ - The Canadian Urban Transit Research & Innovation Consortium (CUTRIC) is warning that Canada risks missing a generational opportunity to create tens of thousands of high-quality jobs, advance zero-emission transit, and secure Canada's global leadership in clean transportation unless the federal government takes urgent action.

As mentioned in federal Budget 2025, a portion of unallocated funding from the Canada Public Transit Fund (CPTF) will be moved to the Build Communities Strong Fund, where transit projects will remain eligible for support. The Minister of Housing, Infrastructure and Communities will also work to simplify existing CPTF requirements to speed up project delivery and help communities to build projects faster and more efficiently.

CUTRIC applauds these changes and urges the federal government to ensure transit projects are not stalled at provincial political levels, which has constituted a historical delaying force in public transit expansion across Canada in the past.

In order to speed up transit projects, the federal government should also consider designating public transit projects as 'Major Projects'.

"This budget is a make-or-break moment for Canada's transit sector," said Josipa Petrunic, President & CEO of CUTRIC. "If the federal government truly wants to drive economic growth, protect Canadian manufacturing jobs, and deliver climate action, transit projects must be recognized as 'Major Projects' and fast-tracked for approvals and investment, just like energy or mining."

Without a shift in approach, dozens of shovel-ready, jobs-rich transit projects across Canada will remain stalled by slow federal approvals and red tape. These projects could deliver thousands of high-value manufacturing jobs and accelerate the transition to zero-emission transit, but only if the government prioritizes them in funding and policy.

CUTRIC supports the Carney government's consolidation of public transit funding in a massive infrastructure spending program that will certainly get mass transit projects out the door faster than the current model of funding can allow. We believe this consolidation will help to maintain and grow over 25,000 jobs in the heavy-duty public transit and passenger transportation manufacturing sector and allied supply chain in Canada.

"Canada's world-leading transit manufacturing supply chain supports more than 25,000 jobs nationwide, but it's under threat from new U.S. tariffs and ongoing funding uncertainty," added Petrunic. "Ensuring the new Build Communities Strong Fund maintains high investment in public transit is essential. This is the time for bold, stable investment to secure our competitive advantage and deliver for Canadians."

CUTRIC is urging the Government of Canada to:

• Classify public transit projects as "Major Projects" to accelerate approvals and delivery;
• Ensure that the new $51 billion Build Communities Strong Fund maintains high investment in public transit to provide predictable, long-term investment in Canadian transit manufacturing and zero-emission fleet transition;
• Advocate for a permanent, zero per cent sectoral tariff for transit products under CUSMA to protect Canadian jobs and supply chains;
• Standardize national Canadian content rules and recognize the sector's strategic value for national security and climate leadership;
• Reaffirm that decarbonizing public transit is a core economic objective under the Government of Canada's Clean Economy Strategy, since decarbonized transit systems use secure Canadian green energy and help grow the domestic green hydrogen sector, which can boost future export opportunities;
• Acknowledge the value of non-profit-led feasibility planning for zero-emission transit transitions, including buses, coaches, streetcars, and rail, and facilitate the allocation of a portion of the $51 billion infrastructure investment to technical and economic studies, as many agencies have successfully utilized such support through the Zero Emission Transit Fund (ZETF).

CUTRIC's Canadian industrial members are ready to leverage their strengths in both traditional and clean bus manufacturing sectors to protect jobs and expand Canada's leadership in North American and global passenger transportation supply chains.

About CUTRIC
The Canadian Urban Transit Research & Innovation Consortium (CUTRIC) is Canada's non-profit leader in zero-emission transit and smart mobility, supporting innovation, research, and systems integration for decarbonized public transportation across North America.

SOURCE Canadian Urban Transit Research & Innovation Consortium (CUTRIC)

For media inquiries or to arrange an interview with Josipa Petrunic, please contact: Mainak Mondal, [email protected]