After extensive negotiations, Ottawa and Quebec have finally come to an agreement on the allocation of new federal public transit investments, as reported by Radio-Canada. Prime Minister Mark Carney and Quebec Premier Christine Fréchette are set to unveil the deal in Longueuil, Quebec, on Tuesday.
The agreement reached with Quebec is estimated to be valued at nearly $6 billion, encompassing all funding available to Quebec under the Canada Public Transit Fund. Quebec had been the only province excluded from the new federal program, which was introduced in 2024 and comprises $25 billion in investments over a decade nationwide.
Carney is keen on expediting transit projects across Canada. The Quebec government, led by former Premier François Legault, had been urging Ottawa to increase its contribution to 40% of the expenses for extending Montreal’s Blue line and constructing Quebec City’s tramway.
The combined cost of these two projects, which have faced numerous delays and fallen years behind schedule, is projected to be $7.6 billion. The federal government has committed $1.9 billion for the Metro extension and $1.44 billion for the tramway, with a portion of the new federal transfers likely aiding in their completion.
It is anticipated that both the Quebec and Canadian governments will also finalize an agreement on the Canada Housing Infrastructure Fund, which involves $51 billion in investments nationwide. The specific value of this agreement was not immediately disclosed.
Although the fund can support public transit initiatives, its primary focus is on financing repairs and enhancements to roads, water mains, and sewer systems. Given that Quebec municipalities are confronted with an infrastructure maintenance shortfall estimated at $50 billion, federal backing is anticipated to facilitate the funding of many critical projects.