Submission to Ontario 2026 Budget Consultations

Transport Action Ontario (TAO) has provided input into Ontario’s 2026 Budget as part of its consultation process. We limited our comments to public transportation needs. Our seven points are highlighted below:

• Increase Ontario Transit Investment Fund. This fund is intended to support rural intercommunity bus service and is inadequate to meet the demand of our many smaller and rural municipalities.
• Fund completion, publication and execution of the Southwestern Ontario Transportation Plan. This long-delayed plan needs to be finalized for this growing region.
• Introduce provincial banking of discontinued rail corridors, ie “rail bank”. Although Ontario has introduced a Short Line Railway Investment Tax Credit, it has not acted on the equally important issue of railway segments (often owned by short line railways) being discontinued and not preserved as transportation corridors.
• Deep dive into capital costs and procurement model for rapid transit in Ontario. Capital costs have been rising rapidly, threatening our ability to fund and construct additional important transit infrastructure.
• Cancel Highway 413 and the proposed Highway 401 tunnel. A recent report, coauthored by TAO, shows that rapid transit in this part of the GTA would be at least twice as cost-effective than Highway 413 for moving people and goods.
• Fund additions to “de-risk” the Northlander train service. We believe that auxiliary power should be available on each train, and that two sleeper cars should be added to each train set.
• New Revenue tools. Municipalities need new tools, such as a portion of the provincial sales tax or a land transfer tax. The province needs to test road pricing as a proven means of congestion reduction and revenue generation.

Our full submission can be viewed below.