Ottawa, Quebec reach deal on public transit funding

Carney and Fréchette expected to announce deal in Longueuil, Que., on Tuesday

After years of difficult negotiations, Ottawa and Quebec have reached an agreement on how new federal public transit investments will be allocated, according to Radio-Canada.

Prime Minister Mark Carney and Quebec Premier Christine Fréchette are expected to announce the deal in Longueuil, Que., on Tuesday.

Radio-Canada has learned the agreement with Quebec could be worth nearly $6 billion. It would cover all funding available to Quebec under the Canada Public Transit Fund.

Ottawa has long sought to finalize transit funding for Quebec, the only province still excluded from the new federal program. Announced in 2024, the fund provides $25 billion in investments across the country over 10 years.

Carney wants projects to move forward more quickly across Canada.

The Quebec government, under former premier François Legault, has been asking Ottawa to increase its contribution to 40 per cent of the cost of extending Montreal's Blue line and building Quebec City's tramway.

After numerous delays and years behind schedule, the combined cost of the two projects is estimated at $7.6 billion. The federal government has committed $1.9 billion for the Metro extension and $1.44 billion for the tramway.

Part of the new federal transfers could be used to help complete the two projects.

The Quebec and Canadian governments are also expected to confirm an agreement Tuesday on the Canada Housing Infrastructure Fund, which includes $51 billion in investments across the country.

The value of that agreement was not immediately available.

While the fund can support public transit projects, its primary purpose is to fund repairs and upgrades to roads, water mains and sewer systems.

With Quebec municipalities facing an infrastructure maintenance deficit estimated at $50 billion, federal support is expected to help finance many urgently needed projects.

Based on reporting by Radio-Canada, translated by Isaac Olson