STM Unveils $1.8B 2026 Budget with $56.5M Cuts, Preserving Services
The Société de transport de Montréal (STM) has announced its budget for 2026, which totals $1.8 billion. This budget includes $56.5 million in spending cuts while ensuring that service levels remain unchanged. Despite significant financial challenges, STM aims to maintain its current kilometre-based service offering in 2026, on par with 2025 levels.
Budget Allocation and Spending Reductions
To adhere to its financial framework, STM has set growth for operating expenses at 0.7% for 2026. This figure aligns with the guidelines established by the Autorité régionale de transport métropolitain (ARTM). In absence of these measures, expenses could have soared by 3.2%.
Marie-Claude Léonard, the STM’s Executive Director, announced that the organization has successfully met its $100 million target for recurring expense reductions, a goal set in 2023 for a five-year span. “Our focus is on maintaining reliable and affordable service while managing public funds effectively,” Léonard stated.
Impact on Staffing and Operations
The proposed cost-cutting measures will lead to changes in various operational areas, including:
- Adjustments to paratransit operations
- Restrictions on hiring and overtime for support staff
- Modifications to maintenance practices for metro cars
- Extended use of certain metro components
- Reduced reliance on IT consultants and equipment
- Streamlined fuel contract negotiations
- Fewer service vehicles for STM staff
As a result, STM expects to eliminate approximately 300 positions in the coming months. Employees in affected roles will be reassigned based on collective agreements and policies.
Long-term Capital Needs
Alongside the 2026 budget, STM unveiled its capital program for 2026–2035, highlighting a $24.1 billion investment requirement over the next decade. Of this amount, $15.2 billion is essential for asset maintenance. However, only $2.8 billion has secured funding, leaving 80% of these essential needs unmet.
Aref Salem, STM board chair, pointed out, “The asset maintenance deficit is currently estimated at $7 billion and might escalate to $9 billion by 2030.” The deteriorating infrastructure, particularly in the metro system, necessitates immediate attention.
Funding Challenges and Workforce Impacts
The funding gaps are also leading to a gradual depletion of internal expertise within STM. Reductions in particular project office personnel commenced in 2025 and are expected to continue. To mitigate this situation, STM urges both the Quebec and federal governments to facilitate the transfer of funds set aside for public transit infrastructure.
Review of Bus Electrification Plans
As part of its financial strategy, STM is also reconsidering the timeline for transitioning to a fully electric bus fleet. Though full electrification could slightly decrease Quebec’s greenhouse gas emissions, hybrid buses are recognized as a more reliable solution during the transitional phase.
“We aim to ensure that every dollar invested yields the maximum benefit. Stable support from higher levels of government is vital for the long-term sustainability of our network,” Salem concluded, emphasizing the necessity of effective investment prioritization and asset condition awareness.
