Canada, Ontario and the Region of Waterloo invest in public transit improvements
WATERLOO, ON, Dec. 17, 2025 /CNW/ - Canada, Ontario and the Region of Waterloo are investing more than $291 million through the Public Transit Infrastructure Stream of the Investing in Canada Infrastructure Program to increase access to public transit, reduce emissions and improve service and accessibility for commuters in Waterloo Region.
The Honourable Bardish Chagger, Member of Parliament for Waterloo, Tim Louis, Member of Parliament for Kitchener—Conestoga, the Honourable Prabmeet Sarkaria, Ontario's Minister of Transportation, the Honourable Mike Harris, Member of Provincial Parliament for Kitchener—Conestoga, Jess Dixon, Member of Provincial Parliament for Kitchener South—Hespeler, Brian Riddell, Member of Provincial Parliament for Cambridge, and Karen Redman, Chair of the Region of Waterloo, announced a total of nine investments together in Waterloo.
Part of today's investments will support the construction of the Kitchener Central Transit Hub (KCTH). Seamlessly uniting active transportation, ION light rail, GO transit, VIA rail, intercity buses, passenger vehicles and Grand River Transit, the new facility will operate as an important node connecting Kitchener to the greater Region of Waterloo and beyond. It will include modern and accessible features such as Wi-Fi, advanced security systems, a central plaza, and integration with the local trail network. Through this investment, the adjacent bus terminal at the corner of King Street and Victoria Street will also be upgraded with four additional bus bays and one mobility bus stop.
Funding is also being provided for public transit projects that will improve and support the delivery of affordable and reliable transit options in the Region of Waterloo. The projects include purchasing 56 hybrid buses to replace retired diesel buses and expanding the fleet with up to 70 additional hybrid buses. Other projects will enhance access to transit by supporting improvements for paths and pedestrian bridges and support general transit operations by improving accessibility and commuter comfort and safety.
Investments in public transit help Canadians get where they need to be, create new manufacturing and construction jobs, reduce pollution, and make life more affordable. The investments announced today will help reduce emissions, improve the travel experience for commuters and connect people to jobs, homes and more opportunities. Purchasing new hybrid vehicles, investing in sustainable technology, upgrading stops and paths around busy transit locations, and updating transit IT systems are vital to maintaining a safe, efficient and reliable public transit service for residents across the Waterloo region.
Quotes
"Enhancing public transportation networks to help more people affordably access jobs and housing is an essential part of ensuring Canadians continue to prosper in a net-zero future. Today's investments will support continued access to safe and reliable public transit, while supporting a clean and inclusive community for residents now and in the future."
The Honourable Bardish Chagger, Member of Parliament for Waterloo, on behalf of the Honourable Gregor Robertson, Minister of Housing and Infrastructure and the Minister responsible for Pacific Economic Development Canada
"Reliable public transit is essential for families, workers, and students in Kitchener—Conestoga. This federal investment will strengthen Grand River Transit, support cleaner buses, and move forward the Kitchener Central Transit Hub. These improvements will help make our region more affordable, accessible, and connected for the future."
Tim Louis, Member of Parliament for Kitchener—Conestoga
"Under Premier Ford's leadership, and as part of our plan to protect Ontario, our government is investing in the largest transit expansion in North America to tackle gridlock, keep workers on the job and support economic growth. Today's funding builds on that work to make transit faster and easier while supporting continued growth in Kitchener, Waterloo and across Ontario."
The Honourable Prabmeet Sarkaria, Ontario's Minister of Transportation
"Our government is proud to support the transit infrastructure Waterloo Region needs to grow. By investing in new hybrid buses, improved stations, and the Kitchener Central Transit Hub, we're helping improve reliability, strengthening our local economy, and opening opportunities for our community. This is a major win for commuters and families across our region."
The Honourable Mike Harris, Member of Provincial Parliament for Kitchener—Conestoga
"Updating and improving transit for Kitchener-Waterloo residents is a top priority for our government. This funding for buses, new paths, lighting and much more will help make transit more accessible and reliable which is great news for the growing region."
Jess Dixon, Member of Provincial Parliament for Kitchener South–Hespeler
"Waterloo Region is growing, and so are the needs of the people who live and work here. By investing in cleaner buses, safer pedestrian connections and modern transit hubs, we're helping residents get where they need to go more efficiently while reducing our environmental footprint. These upgrades will improve daily commutes, strengthen local mobility, and support the long-term prosperity of our community."
Brian Riddell, Member of Provincial Parliament for Cambridge
"This investment aligns with the Region of Waterloo's vision for growth and Grand River Transit's strategic priorities. By funding the Kitchener Central Transit Hub, incorporating more hybrid buses, and upgrading transit facilities, we are not only reducing emissions and improving accessibility but also connecting our communities and supporting climate-aligned growth within and beyond Waterloo Region."
Karen Redman, Chair of the Region of Waterloo
Quick Facts
- The federal government is investing more than $115 million in these nine projects through the Public Transit Infrastructure Stream of the Investing in Canada Infrastructure Program. The Government of Ontario is investing more than $96 million and the Regional Municipality of Waterloo is contributing more than $80 million.
- The Canada Public Transit Fund (CPTF) will provide significant permanent funding to respond to local transit needs.
- Between 2026 and 2036, the Region of Waterloo will receive $71,673,460 through the CPTF-Baseline Stream.
- Ontario is investing nearly $70 billion in the largest transit expansion in North America.
- Ontario reached an Agreement-in-Principle with CN Rail to purchase 20.9 km of land within the Halton Subdivision to build new two-way track on the Kitchener Line, a key step toward delivering future two-way, all-day GO train service between Kitchener and Toronto.
- The Region of Waterloo received over $13.7 million through the 2024-25 Ontario Gas Tax program. The Gas Tax program provides Ontario municipalities with a stable source of dedicated funding that can be used to increase public transit service, purchase new vehicles and improve accessibility.
- Federal funding is conditional on fulfilling all requirements related to consultation with Indigenous groups and environmental assessment obligations.
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Associated Links
Investing in Canada: Canada's Long-Term Infrastructure Plan
https://housing-infrastructure.canada.ca/plan/icp-publication-pic-eng.htmlhttps://www.infrastructure.gc.ca/plan/icp-publication-pic-eng.html
Public Transit Infrastructure Stream
https://housing-infrastructure.canada.ca/plan/pti-itc-eng.html
Ensuring long-term predictable public transit funding and moving forward with an agreement to support people living without homes
https://www.canada.ca/en/housing-infrastructure-communities/news/2025/02/ensuring-long-term-predictable-public-transit-funding-and-moving-forward-with-an-agreement-to-support-people-living-without-homes.html
Housing and Infrastructure Project Map
https://housing-infrastructure.canada.ca/plan/prog-proj-on-eng.html
Strengthened Climate Plan
https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview.html
2024-25 Gas Tax Funding by Municipality
https://news.ontario.ca/en/backgrounder/1005833/2024-25-gas-tax-funding-by-municipality
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SOURCE Department of Housing, Infrastructure and Communities