Red Deer to receive $9.8M from federal government to replace transit fleet over next 10 years

Oct 13, 2026 | 11:35 AM

The City of Red Deer will purchase a new fleet of transit buses over the next 10 years with a $9.8 million grant from the federal government.

At Tuesday’s regular city council meeting, council passed a proposed budget amendment to allocate $9,890,380 from the federal government’s Canada Public Transit Fund (CPTF) grant over 10 years.

This means, according to city administration, that the funding will be received in annual allotments of $989,038 for eligible expenses to replace the transit fleet. City of Red Deer transit services recommends three bus replacements per year for the next decade.

In the 2024 federal budget cycle, the CPTF was announced, and at that time the City of Red Deer was deemed eligible for the grant and was invited to submit a formal application.

The city submitted the application in June 2025, and in July the government approved it and entered into negotiations for the agreement.

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Red Deer to receive $9.8M from federal government to replace transit fleet over next 10 years

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“The City of Red Deer is the sole provider of affordable public transportation for the community. Public transportation is a heavily relied upon public service, and an important component of a resilient city,” City administration wrote in the report to council. “It also supports growth and economic development as it supports employers, developers and institutions who may rely on public transportation for their workforce mobility, attracting new residents to the city, and the ability to accommodate future growth.”

The city reports that in 2025, over 2.7 million passenger trips were provided, including approximately 1.4 million trips for students to middle school and high school. In addition, approximately 448,000 trips were provided for those utilizing the Transit Fare Assistance Pass.

by Ian Gustafson

Red Deer to receive $9.8M from federal government to replace transit fleet over next 10 years

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