Caledon is receiving $568,726 in provincial gas tax funding to support local transit, including a planned electric minibus service, while three existing Brampton Transit routes will continue through the end of 2026.

Caledon Citizen reported the money will go toward the town’s overall transit program, including the Argo on-demand pilot and contracted Brampton Transit services, according to Domenica D’Amico, Caledon’s commissioner of engineering, public works and transportation.

The allocation is part of Ontario’s $380-million Gas Tax program for 2025/26. The provincial program provides municipalities with long-term funding to maintain and expand public transit.

A release from Dufferin-Caledon MPP Sylvia Jones said municipalities can use the money to extend operating hours, buy vehicles, introduce routes, improve accessibility and upgrade transit infrastructure.

Funding is calculated using gasoline sales in Ontario during the previous fiscal year, along with local population and transit ridership. Jones said the allocation would help Caledon provide reliable, accessible connections to jobs and services.

Existing routes stay through December

The on-demand pilot will serve Bolton, Mayfield West — including Southfields — and Caledon East. Council approved a motion in early April to enter into a Micro-Transit Pilot Agreement with Argo Transit.

The service will use fully electric minibuses with capacity for 18 people. The vehicles will be wheelchair accessible and accept PRESTO.

Although the pilot was initially intended to replace three Brampton Transit routes, town staff told council on April 28 that existing contractual commitments would be maintained through the end of 2026. Routes 81, 25 and 41 will remain in service until then.

The pilot is now scheduled to begin Sept. 14, 2026, and continue until Dec. 31, 2027. It has been revised to a 16-month project from the previously discussed 15-month period, with a total cost to the town of $4.61 million.

Staff are to report to council at the six- and twelve-month marks with results, findings and recommendations. They will also recommend whether to pause or extend the Brampton Transit routes.

Council members suggested information sessions for residents, community centres and local schools to explain how to use the new service. A question-and-answer memo presented at the May 5 general committee meeting covered start dates, accommodations, feedback and other aspects of the pilot.

Separate funding for TransHelp

Peel Region is receiving a separate $318,268 allocation, which it says will help cover operating costs for TransHelp. The specialized door-to-door transit service is available to eligible residents in Caledon, Brampton and Mississauga.

The region said its funding will support approximately 10,000 trips as demand increases. It projects total TransHelp ridership will reach about 920,000 trips in 2026, roughly 10 per cent above 2025.