Today, the Government of Canada announced a $758 million investment to fund 55 new subway trains for the Bloor-Danforth Line 2, addressing the urgent need to replace aging vehicles that are nearing the end of their service life Lifespan approaching. Under Toronto's New Deal a year ago, that funding will be matched by the city of Toronto and the provincial government, the latter two of which previously pledged to cover a third of the cost once the federal government also gets involved. This latest targeted 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 system since 2015.
“This is an excellent day for TTC riders and the result of months of negotiations between all governments,” said Mayor Olivia Chow. “By partnering and funding a third each, it shows how we can work together to keep people moving.”
The TTC estimates it needs an average of $2.4 billion annually to keep the system in good working order. The current Line 2 subway fleet, which will be in service for 30 years starting in 2026, is nearing the end of its operational life. The TTC faced a critical March 2025 deadline to place an order for new trains. Otherwise, a $1.6 billion overhaul of the existing trains would have been required. The TTC applied for this funding from the federal government 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 the time, the TTC CEO outlined in his July report the agency's plan to procure 70 new trains, including vehicles for the Metrolinx-funded Scarborough and Yonge North subway extensions. Options are also planned for 42 additional trains to accommodate future passenger growth and increase service reliability. The report noted that a contractor for the trains has not yet been confirmed and the TTC will initiate procurement for the job. The TTC aims to deliver all new trains by 2033.
Concept illustration of a new subway, image from TTC
The Canada Public Transit Fund links transit investments to housing growth by requiring municipalities to implement measures to support urban densification. These include eliminating parking minimums and allowing high-density housing near transit lines and post-secondary institutions.
Ontario's funding is part of its broader $70 billion plan to expand public transit over the next decade, which includes major projects such as Ontario Line 3, the Yonge North Subway Extension and the Eglinton Crosstown West Extension. Through the New Deal for Toronto, the province also committed $1.2 billion to support public transit and infrastructure, including additional funding for the Gardiner Expressway and Finch West LRT.
“Toronto is Canada's economic powerhouse and we need all levels of government to work together to ensure the city has the critical transportation infrastructure it needs to grow in the future,” said Ontario Transportation Minister Prabmeet Sarkaria.
Public transit advocacy group TTCriders welcomed the funding announcement and highlighted its importance in improving reliability for Line 2's daily riders. They highlighted that infrastructure deficiencies have led to dozens of speed-restricted zones across the subway network, each of which extended the journey time by around two minutes. The group praised cooperation between all levels of government for finally moving this long-delayed project forward.
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