The Toronto Transit Commission (TTC) has proposed an additional $1.48 billion from the city for its 2026 budget. This new budget aims to freeze fares and implement a fare-capping program. The request marks an increase of approximately $94 million compared to the previous year, reflecting the agency’s increasing reliance on city support.
TTC’s Financial Overview for 2026 Budget
The TTC’s overall operating budget for 2026 is projected at $3 billion. Of this amount, nearly half would come from city subsidies. The TTC also plans to utilize $35 million from its reserves to support the fare freeze. Currently, fare revenue is expected to cover only about one-third of the total budget.
Challenges Facing the TTC
- The transit agency is contending with rising operational costs.
- Fare revenue has not met projections, partly due to lower ridership.
- Declines in student pass sales have been attributed to reduced international student permits.
Mandeep Lali, the new CEO of the TTC, addressed these challenges during a board meeting, emphasizing the need for a sustainable financial strategy. “The TTC continues to experience a structural fiscal imbalance,” he stated, highlighting the agency’s reliance on municipal funding.
Fare Capping and Its Financial Implications
A key feature of the TTC’s proposed budget includes fare capping. This program allows riders to travel for free after taking 47 trips within a month. Implementation is set to begin in September 2026, with an initial cost of about $3 million for the TTC.
From 2027 onward, the fare cap may be adjusted to 40 rides. This change would permit daily commuters to use the TTC for free on weekends if they commute to work during weekdays. The projected costs for this adjustment are:
- 2027: $14.7 million
- 2028: $17.2 million
Looking Ahead: Anticipated Events and Strategies
The TTC is hopeful that the upcoming 2026 FIFA World Cup will provide a boost to ridership. However, board chair Jamaal Myers stressed the necessity for a revised ridership growth strategy to address current trends. “The traditional work commute is no longer the standard,” he noted, emphasizing the importance of adapting transit services to contemporary needs.
As the city prepares to unveil its proposed budget, the TTC’s recommendations are expected to play a significant role in shaping the city’s public transit future.
