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• What types of projects can receive funding under the Rural Transit Solutions Fund?
• Who can apply?
• How are projects assessed?
• Key dates and deadlines

What types of projects can receive funding under the Rural Transit Solutions Fund?

There are two streams for the Rural Transit Solutions Fund. Eligible applicants can apply for planning and design project grants and for capital projects contributions.

Planning and Design Projects

Planning and design grants support transit planning activities and the development of new solutions that will support activities such as: public engagement, needs assessments, feasibility or viability studies, surveys and assessments of routes or modes of travel.

These planning and design projects are important to support communities developing projects that could be considered in future intake processes. In future years, INFC intends to expand its capital projects intake to allow pilot projects to implement new rural transit solutions.

Eligible applicants (see eligible applicants below) can seek federal support in the form of a grant, of up to $50,000.

Capital Projects

Capital Projects can cover a broad range of activities related to the implementation of a project that supports the delivery of rural transit solutions. Proposed solutions could include a range of modes of eligible transport, including traditional solutions such as fixed-route buses, as well as non-traditional solutions such as ride-share and on-demand services requiring the purchase of minivans, small craft, and zero-emission fleets, shared fleets, the construction of intermodal hubs, the installation of charging stations or the purchase of software.

Once launched, eligible applicants will be able to submit applications for up to $3 million in federal funding to help cover capital costs (e.g. purchase of a vehicle or digital platforms) and up to $5 million in federal funding to support zero-emission transit solutions (e.g. for the purchase of a zero-emission vehicle).

Proposed solutions that rely on air travel as a means of serving the community are not eligible under the Rural Transit Solutions Fund.

Maximum funding allocations for capital projects will be as follows*:

Eligible organization	Maximum Program contribution (% of capital expenses)	Maximum Federal Contribution from all sources (% of capital expenses)	Total Canadian (i.e., federal provincial, territorial, and municipal) Government stacking (% of capital expenses)
Applicant is located in a province or is a not-for-profit organization	80%	80%	100%
Applicant is located in a territory and/or an Indigenous recipient	100%	100%	100%
Provincial government	40%	40%	100%
Territorial government	75%	75%	100%

*Note: It should be noted that discussions are ongoing between the Government of Canada and the Government of Quebec regarding the implementation of this program in Quebec, in accordance with the Quebec legislative framework.

Who can apply?

The following groups are eligible to apply to the Rural Transit Solutions Fund:

• Municipalities, local and regional governments established under provincial or territorial statute, including local service districts
• Provinces and territories (only for capital projects)
• Public sector bodies that are established by or under provincial or territorial statute, or by regulation, or are wholly-owned by a province, territory, municipal or regional government
• Indigenous governing bodies
• Federally or provincially incorporated not-for-profit organizations whose mandate is to improve Indigenous outcomes, organizations serving Indigenous communities living in urban centers and First Nations living off-reserve
• Indigenous development corporations
• Not-for-profit organizations when submitting an application on behalf of any primary eligible recipient. (Eligible recipients are listed as 1-6 above)

Individuals, private citizens, private companies, and federal entities, including federal Crown corporations cannot apply.

An eligible organization can work with a private sector service provider to facilitate implementation of a rural transit solution. For such projects, the ownership of the infrastructure or rolling stock must remain with the eligible organization.

Due to the diversity of Canadian communities and public transit needs, applicants must demonstrate how their projects will meet the needs of their communities, how they define themselves as rural, and demonstrate how their projects meet the merit criteria listed below.

Of note, Infrastructure Canada is in ongoing discussions with the government of Québec with respect to the program's implementation in the Province given the Loi sur le ministère du Conseil exécutif (M-30).

How are projects assessed?

The Rural Transit Solutions Fund is a national, competitive, direct application program.

Applicants need to provide sufficient information for officials to review the proposal. It is also important that applicants explain how proposed planning activities meet the merit criteria. All eligible projects will be evaluated against the following merit criteria:

Planning and Design Projects (please consult the guidelines for more information)

Merit Criteria	Approach to Criteria Assessment
Need	Applicants must provide: Demographics of the community. The current state of transit programming in the community. How the proposed planning and design project will identify community populations who will benefit from improved transit solutions.
Scope	Applicants must explain: How the planning and design project will contribute to developing a proposal that could be integrated into the future development of the community or region. How the planning and design project will support the development and implementation of a future project in the community.
Viability	Applicants must explain: How the planning outcomes will be communicated to community members to support the development of a project proposal that has community support. The expected time frame of the planning process.

Capital Projects

Merit Criteria	Approach to Criteria Assessment
Community demand for rural transit solution	Applicants must: Describe the population that is expected to use the service and what transit services are currently available to them, if any. The proposal should provide an understanding of the community/area. When possible, please provide the sources of information (e.g.: city documents, Statistics Canada, public consultations). Describe the vulnerable populations in the community/area and how they currently access transit services, if any.
Inclusiveness benefits to local community	Applicants must: Explain how the rural transit solution will contribute to improve the quality of life and safety of various groups in the community/area and close the socio-economic gaps that currently exist.
Potential for economic impact	Applicants must: Explain how the rural transit solution will contribute to the economy of the community/area, including, for example:   Estimates in their application concerning impacts of the project on the number of jobs, the income of the individuals and other economic benefits. How local businesses and business associations could be engaged and contribute to the success of public transit in your community/area.
Environmental impact	Applicants must describe: The community/area implementation strategies to encourage an increasing number of people to use public transit. When applicable, explain how the project will reduce GHG emissions or how the rural transit solution will integrate clean or zero-emission technologies.
Viability	Applicants must: Describe the objectives and how success will be measured. Explain strategies that could be put in place to support the long-term viability of the project, including potential sources of funds (fares, local and provincial government support, contribution from local businesses, etc.)
Locally driven	Applicants must: Explain how the community is expected to support the rural transit solution. This could include letters of support, participation of local organization in the planning and delivery of the project. Describe the partnership that has been established at various levels, including with neighboring communities, regional government, existing transit organizations, etc. As applicable,  include strategies to maintain and expand local support

Key dates and deadlines

Planning and Design Projects Stream: The first intake closed on October 7, 2021 where eligible applicants could seek up to $50,000 in support for planning and design grants.

Capital Projects Stream: The application intake closed on April 7, 2022. Eligible applicants could apply for up to $3 million to help cover capital costs (e.g. purchase of a vehicle or digital platforms); and up to $5 million to support zero-emission transit solutions (e.g. for the purchase of a zero-emission vehicle(s)).

Subsequent calls for application will be announced at a later date.