Summary#
Montréal city council unanimously set its position in favour of approving the 2026 budget and 2026–2035 capital program of the Société de transport de Montréal (STM). This is an orientation for the agglomeration council, which makes the final decision at a later meeting. The stated goal, according to city staff, is to support public transit, including the ecological transition.
- The STM’s 2026 budget is a little over $1.8 billion, with planned expenses up $27.1 million (1.5%) from 2025.
- The 10-year capital program forecasts $24.1 billion in investment. Of this, $10.5 billion is for spending authorized under government transit-aid programs; projects worth $13.6 billion are still being identified or defined.
- The program includes planned spending on electric buses and bus facilities, the Blue Line extension, metro repairs and equipment, and station accessibility.
- The agglomeration’s 2026 allocation for public transit is $808.4 million, including $6.3 million to fund fare-free transit for people aged 65 and older across the agglomeration.
What it means for you#
- Transit users: The plan sets out the STM’s budget and investment priorities, but the materials do not specify changes to routes, service levels or fares.
- People aged 65 and older: The decision summary says $6.3 million is added to fund fare-free transit already offered to this group across the agglomeration. The decision does not set out new eligibility rules.
- Taxpayers: The agglomeration’s transit allocation is made through its contribution to the Autorité régionale de transport métropolitain (ARTM). The decision does not announce a tax change.
- STM: The budget and capital program set out its planned operating spending and investments. The decision summary says most capital spending is financed through debt.
Money#
The decision summary estimates the STM’s 2026 budget at a little over $1.8 billion and its 2026–2035 capital program at $24.1 billion.
- Planned expenses rise by $27.1 million from 2025: $10.5 million for higher costs of goods and services and collective agreements, and $16.6 million for capital-related costs.
- The agglomeration’s 2026 public-transit allocation is $808.4 million, up $45.6 million from 2025. It includes $39.3 million for services provided by the STM, EXO and the REM, and $6.3 million for fare-free transit for people aged 65 and older.
- The STM’s net debt is forecast to rise from $1.3 billion at the end of 2025 to $2.4 billion at the end of 2035.
- These are budget and program forecasts; the materials do not give a separate cost for this council orientation.
What is unclear#
- The program includes $13.6 billion in projects still at the identification or definition stage. The materials do not say which will proceed or how they will be funded.
- The materials do not give a detailed breakdown of how the debt forecast will be financed or repaid.
- The decision summary does not describe changes to transit services, fares, or the terms of the fare-free offer for people aged 65 and older.
Case for#
- A case for the plan is that it sets out funding for transit operations and long-term investments, including bus electrification, metro repairs and station accessibility.
- The Blue Line extension is a major planned investment in the program.
- City staff say spending on public transit supports the ecological transition.
Case against#
- One concern is that $13.6 billion of the capital program is still at an early planning stage, so the program’s full delivery and funding are not settled.
- The forecast increase in STM net debt—from $1.3 billion to $2.4 billion by 2035—could mean a larger debt burden.
- The materials do not show how planned investments will affect service levels, fares or the day-to-day experience of passengers.