The federal government seems to have cooled to the idea of funding a proposed subway extension to York University.

The TTC proposal would extend the University-Spadina subway line north to the Vaughan Corporate Centre at Jane and Highway 7.

A sign at York University announces the subway expected to be extended to the campus.
(CBC)

Federal Finance Minister Jim Flaherty commented to a Toronto newspaper that there are no guarantees for the funding the provincial government hoped to receive from Ottawa for the $2-billion project.

Flaherty told the Toronto Star that when it comes to public transit, "choices have to be made" and the subway is "one of the items that's on the table."

Ontario earmarked $670 million for the extension in the provincial budget with the expectation that York Region and the federal government would each contribute the same amount.

The Harper government pledged money for public transit in the GTA, but Flaherty may focus funds on roadways, particularly a Highway 407 extension, instead of the subway project.

Reacting to Flaherty's comments, Ontario Finance Minister Greg Sorbara told CBC News he's confident the federal government will participate in the project.

"This province and the municipalities around it are very much committed to this process and this construction, and we would all be surprised if the federal government at the end of this consultation was not at the table as our partner," said Sorbara.

He stopped short of vowing that the McGuinty government would go ahead with the project if the federal government pulls out.

A final decision is expected at the end of the year.