It only took four years to build the Canadian Pacific Railway.
But Prime Minister Justin Trudeau is billing a high-speed rail link from Pearson Airport to Quebec City as the biggest public works project in Canadian history — with no estimate of when it will come into service.
Now the Canadian Taxpayers Federation (CTF) is calling out what it says is a multibillion dollar boondoggle, warning it will be borne by taxpayers.
On Wednesday, Trudeau pledged $3.9 billion over six years for the project’s development phase, adding to the $371.8 million already allocated in last year’s budget. The overall cost of the rail line remains uncertain, with Transport Canada previously estimating it could soar as high as $80 billion by the time it is finally finished — although nobody knows when.
“Trudeau is only prime minister for another couple of weeks, so he shouldn’t be borrowing billions more for a new taxpayer boondoggle,” said Franco Terrazzano, CTF Federal Director. “Somebody needs to take the credit card away from the lame duck prime minister before he puts Canada further into debt.”
The government, which already owns VIA Rail, has spent $1.8 billion in recent years to cover the Crown corporation’s operating losses. Critics, including the CTF, argue that taxpayers cannot afford more debt to fund another major rail initiative, especially with Canada’s deficit reaching $62 billion last year — $20 billion above the government’s own fiscal guardrail.
The high speed project is also facing criticism because a company owned by Air Canada is already bidding to subcontract operation of the line from Via Rail before it’s even built.
Despite the controversy, Trudeau defended the project, calling it “the largest infrastructure project in Canadian history.”
The proposed electric train network, dubbed Alto, would cover 1,000 kilometres to connect Montreal, Ottawa and Toronto with speeds up to 300 km/h. Trudeau argued the project would generate 51,000 jobs and boost GDP by $35 billion annually.
However, with a new prime minister set to be chosen on March 9 and a federal election expected this spring, the future of the high-speed rail plan remains uncertain. Construction will not begin until at least 2029, leaving the project vulnerable to changes in government policy as well as the whims of a new leader.
Philip Lawrence, Conservative Shadow Minister for Transport said "this is a lame duck statement from a lame duck government. The prime minister will be gone in two weeks... the minister of transport will not be seeking re-election. Canadians should add this to the pile of endless promises that have been made by this government over the last nine years, promises that they constantly break and fail to deliver on."
Meanwhile, Alberta is moving ahead with its own long-anticipated passenger rail strategy. Premier Danielle Smith’s government reaffirmed its commitment to finalizing a master rail plan by summer 2025, with a focus on connecting Edmonton and Calgary through commuter and intercity rail.
The proposed system would link both cities’ downtowns to their airports and surrounding communities, with additional connections to Red Deer and Alberta’s mountain parks. Unlike Ottawa’s high-speed rail plan, Alberta’s project is being designed in stages to ensure affordability and long-term feasibility.
Smith has previously suggested she could establish a Crown corporation, similar to Ontario’s Metrolinx, to oversee operations but also intends to involve private partners.
The renewed push for rail in Alberta comes amid rapid population growth and increasing demand for alternative transportation options. VIA Rail CEO Mario Péloquin, who attended Alberta’s announcement last spring, said the UCP government’s timeline to have a system in place by 2040 is “realistic” and would provide a safer, greener alternative to driving — particularly in winter.
He also said Alberta’s more gradual approach to rail expansion presents a stark contrast driven by long-term planning rather than immediate spending.
“A few years ago, I would have said probably not a viable idea," Péloquin said at the time. “Today, with the growth in both major cities and some of the other cities, it's a lot more viable to do it now.”