Ontario commits $2.2 million for transit in Thunder Bay and Atikokan
THUNDER BAY — Ontario says it is investing $2,205,325 in public transit for Thunder Bay and Atikokan through the 2025-26 Gas Tax program, with the funding intended to help municipalities maintain and improve local transit service. For Northwestern Ontario, where reliable transit can be critical for work, school, medical appointments and daily errands, the funding is aimed at supporting both larger urban systems and smaller rural services.
Thunder Bay receives bulk of regional funding
Under the provincial allocation, Thunder Bay is set to receive $2,181,141, while Atikokan will receive $24,184.
The province says the gas tax funding can be used for local transit priorities such as extending service hours, adding or improving routes, buying new vehicles and making systems more accessible in an effort to boost ridership.
Kevin Holland, MPP for Thunder Bay-Atikokan, said the funding will help support reliable transit service across the riding.
“The people of Thunder Bay – Atikokan deserve access to reliable transit services that get them where they need to go quickly and safely,” Holland said in the announcement.
Province says nearly $380 million is being distributed provincewide
Ontario says it is investing nearly $380 million through the 2025-26 Gas Tax program to support transit services in 107 municipalities across the province.
Transportation Minister Prabmeet Sarkaria said the broader goal is to help municipalities continue delivering safe and reliable service while Ontario pushes its wider transit agenda.
According to the province, gas tax funding may be used for either transit operating or capital costs at the municipality’s discretion.
Thunder Bay and Atikokan stress local value of transit support
Thunder Bay Mayor Ken Boshcoff said the city plans to use the funding to help support and improve transit service across the community.
“Public transit is essential for residents who rely on it to get to work, school, appointments and services,” Boshcoff said. “This investment, which is included in our 2026 Capital Budget, will help the city improve routes, extend service hours and continue providing reliable transit options that connect people to where they need to go.”
Atikokan Mayor Rob Ferguson said the funding is also important for smaller rural systems in Northwestern Ontario.
“This is positive news for Atikokan,” Ferguson said. “Investments like this help us continue providing reliable transit services and support the long-term sustainability of our program for residents who depend on it.”
Why it matters in Northwestern Ontario
In Thunder Bay, transit funding has a direct effect on residents who depend on buses to reach jobs, health care, shopping and education. In smaller communities like Atikokan, even modest provincial support can help sustain services that might otherwise face pressure from rising fuel, maintenance and operating costs.
The announcement also reflects a wider regional issue: in Northwestern Ontario, transportation gaps can quickly become barriers to employment and access to services. While the largest transit expansion projects in Ontario remain concentrated in the Greater Toronto and Hamilton Area, funding for local systems in the Northwest remains important because it supports the day-to-day mobility people rely on now.
How the gas tax program works
The province says that under the Dedicated Funding for Public Transportation Act, 2013, two cents per litre of provincial gasoline tax is set aside as a permanent funding source for public transit.
Ontario says the annual funding envelope is based on the amount of gasoline sold in the previous year, while municipal allocations are determined through a formula that considers public transit ridership and population growth. The province says that model is intended to provide stable support to municipalities of different sizes, including smaller communities.
