New Canadian Transit Fund Aligns Housing & Mobility, Retires Flawed Hydrogen Push - CleanTechnica

Canada is overhauling its public transit funding approach by replacing the temporary Zero Emission Transit Fund (ZETF) with a permanent, predictable Canada Public Transit Fund starting in 2026. This new fund commits about $30 billion over the first decade and $3 billion annually thereafter, providing stable, long-term support that enables transit agencies to plan fleet renewals and infrastructure upgrades with confidence. Unlike the ZETF, which was short-term, application-driven, and narrowly focused, the new fund integrates transit capital into core federal infrastructure funding with baseline regional allocations and targeted competitive calls for projects addressing priorities like electrification and active transportation. A key innovation of the new fund is its alignment of transit planning with housing development through Metro-Region Agreements and Integrated Regional Plans, promoting coordinated growth that avoids car-dependent sprawl. This approach reflects lessons from Singapore’s transit-oriented housing model and responds to Canada’s housing and climate challenges by ensuring public investment supports livable, low-carbon urban environments. Additionally, the fund continues to