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Today, the Canadian government announced a $758 million investment to fund 55 new subway trains for Bloor-Danforth Line 2, addressing the urgent need to replace aging vehicles nearing the end of their lifespan. As part of the New Deal for Toronto struck a year ago, this funding will be matched by the City of Toronto and the provincial government, the latter two having earlier pledged to carry a third of the cost once the federal government also bought in. This latest directed contribution is part of a broader commitment by the federal government, which has invested a total of $11.56 billion in Toronto's public transit since 2015.
“This is an excellent day for TTC riders and the result of months of negotiations across all governments,” said Mayor Olivia Chow. “By partnering and funding one-third each, it shows how we can work together to keep people moving.”
The TTC estimates that it needs an average of $2.4 billion annually to keep the system in good repair. Line 2’s current fleet of subway trains, in service for 30 years as of 2026, is approaching the end of its operational life. The TTC faced a critical deadline of March, 2025 to place an order for new trains; failing this would have necessitated a $1.6 billion overhaul of the existing trains. The TTC had applied to the federal government for this funding in July, 2024 through the Canada Public Transit Fund, the largest public transit investment in Canadian history, providing $3 billion annually across the country.
At that time, the TTC CEO’s July report outlined the agency's plan to procure 70 new trains, including vehicles for the Metrolinx-funded Scarborough and Yonge North subway extensions. Plans are to also include options for 42 additional trains to accommodate future ridership growth and enhance service reliability. The report noted that a builder is not yet confirmed for the trains, with the TTC to launch a procurement for the order. The TTC will seek to have all of the new trains delivered by 2033.
The Canada Public Transit Fund links transit investments with housing growth by requiring municipalities to implement policies that support urban densification. These include eliminating minimum parking requirements and allowing high-density housing near transit lines and post-secondary institutions.
Ontario’s funding is part of its broader $70 billion transit expansion plan over the next decade, which includes major projects such as the Ontario Line 3, Yonge North Subway Extension, and Eglinton Crosstown West Extension. Through the New Deal for Toronto, the province has also committed $1.2 billion to support public transit operations and infrastructure, including additional funding for the Gardiner Expressway and Finch West LRT.
“Toronto is the economic hub of Canada, and we need all levels of government working together to ensure the city has the critical transit infrastructure it needs to grow for the future,” shared Prabmeet Sarkaria, Ontario Minister of Transportation.
Transit advocacy group TTCriders welcomed the funding announcement, emphasizing its importance in improving reliability for Line 2’s daily riders. They highlighted that infrastructure defects have resulted in dozens of restricted speed zones throughout the subway network, each adding about two minutes to travel times. The group credited collaboration between all levels of government for finally moving this long-delayed project forward.
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