Federal government promises millions in annual transit funding to Manitoba cities

The federal government has announced tens of millions of dollars to support transit services in three Manitoba cities.

Winnipeg Mayor Scott Gillingham says the money couldn't come at a better time, as the city prepares to launch its new primary transit network.

"Over the next decade, this funding will assist the City of Winnipeg roll out this new network and modernize transit and keep our system advancing as our city grows," Gillingham said during a Wednesday news conference at the Osborne Street rapid transit station.

Winnipeg, Brandon and Selkirk will get a combined $120 million to support their transit services.

The cities will receive the money in annual allotments of $12 million, starting in 2026 and continuing until 2036, through the Canada public transit fund. The vast majority — about $11.5 million a year — will go to Winnipeg.

Liberal Winnipeg South MP Terry Duguid, the federal minister for Prairies economic development, made clear the funding could depend on who wins the next federal election, which will be held this year.

"[Conservative Leader] Pierre Poilievre has said he will cancel the [housing accelerator fund], the Canada housing infrastructure fund, and these are going to go away," Duguid said.

"So, that's very difficult to plan, when someone says they're going to cancel things."

Poilievre has said he would cut the Liberals' housing policies, and instead eliminate the federal sales tax for new homes sold for under $1 million. He has called on provinces to do the same with provincial sales taxes.

Like other recent federal funding agreements, the transit funding comes with the expectation that cities change rules to make housing construction easier, such as eliminating parking requirements, and allowing high-density housing near high-frequency transit and post-secondary institutions.

Public works committee chair Janice Lukes says the money will help with planning and infrastructure for the new transit network set to launch this summer, including new bus shelters and signs.

"We have …over 8,000 stops. They've ordered 8,000 signs to be put up on the new routes. So there's an awful lot of infrastructure that comes with building a network and building it out," the Waverley West councillor said.

The new network will completely reorient Winnipeg's transit system, with the aim of making it more frequent and reliable.

Winnipeg plans to launch the new primary transit network on June 29.