The Toronto Transit Commission (TTC) Board on Jan. 7 signed off on a C$3.028 billion combined 2026 operating budget for its conventional system of bus, subway, and streetcar services (C$2.826 billion in gross expenditures, C$1.537 billion in revenues and a net funding requirement of C$1.289 billion) and Wheel-Trans para-transit service (C$201.6 million in gross expenditures, C$10.3 million in revenues and a net funding requirement of C$191.4 million). It also approved a C$16.7 billion Capital Budget and Plan for 2026-2035, which includes C$1.635 billion for 2026.
The budget reports (scroll down to download) were submitted to the City of Toronto Budget Committee and the City of Toronto Manager.
According to the TTC, the total operating budget represents a 6.8% increase from 2025 and “keeps transit affordable” through a third consecutive fare freeze and the introduction of fare capping, and adds nearly 200,000 hours of service.
Highlights of the 2026 budget include:
- Freezes TTC fares again at 2023 prices.
- Introduces a fare capping program “so any trips after 47 in each month would be free. In 2027, that number drops to 40 trips.”
- Dedicates almost C$60 million “to preserve and enhance 2025 safety initiatives and operating levels as more workers return to office, and to address congestion and changes in ridership patterns.”
- Provides additional service for the 2026 FIFA World Cup.
- Increases Wheel-Trans funding by C$19 million “to meet rising demand.”
- Funds Lines 5 and 6 operations in 2026 “through the New Deal with the Province of Ontario.”
TTC reported that “priority” projects funded through the recommended 2026-2035 Capital Budget and Plan include:
- “Conventional and Wheel-Trans bus fleet replacements and associated charging infrastructure.
- “Critical subway systems (signals, electrical and communications) and equipment (escalators, elevators, ventilation and subway pumps/backflow preventers) to maintain reliability and enhance the customer experience.
- “Facility renewal programs including roofing rehabilitation, HVAC replacements, overhead doors, safety systems and infrastructure renewal projects to maintain asset integrity
- “Streetcar track replacement.”
The plan, TTC said, adds C$1.36 billion for “important longer-term state of good repair, reliability and safety and legislative programs,” including:
- C$302.8 million for subway, bus, and streetcar vehicle overhauls.
- C$168.8 million for “crucial” subway and surface track replacement.
- C$253.4 million for traction power, signaling, communications and power distribution asset replacement/rehabilitation.
- C$141.6 million for facility rehabilitation/modifications.
“Transit should fit your life, not the other way around.” Toronto Mayor Olivia Chow said. “With this budget, fares stay frozen for the third year in a row, fare capping will make travel more affordable, and we’re adding service where people need it most.”
“The TTC is moving from managing challenges to delivering results,” TTC Chair Jamaal Myers commented. “This budget strengthens affordability, reliability, and safety while tying investments to clear performance metrics. Riders deserve transparency and accountability, and that’s exactly what we’re delivering.”
“These Board-approved budgets support meaningful investments in our operations and capital projects upon which we can build the incremental improvements that our customers will benefit from,” said Mandeep S. Lali, who became TTC CEO in July 2025. “It also means we will be able to deliver world-class service during the World Cup, which will bring hundreds of thousands of visitors to our City.”
