Transit operating grants are provincial funding that supports the ongoing costs of running public transit systems—drivers, fuel, maintenance, and administration. Operating grants help municipalities afford transit services that fare revenue alone cannot cover. Unlike capital grants for vehicles and facilities, operating grants address daily service costs. Operating grant availability and amounts vary significantly by province, with some providing substantial operating support while others focus primarily on capital funding. Transit advocates argue that sustainable transit requires predictable operating funding, not just capital investment. Operating grant formulas may consider ridership, service levels, municipal fiscal capacity, or other factors. Provincial operating grants are essential for many smaller transit systems that could not otherwise be affordable.