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An Assessment of the Federal Budget for our community

The Government of Canada released its budget on November 4th, delivered by Minister of Finance and National Revenue, François-Philippe Champagne. It has since passed in the House of Commons. This communication outlines how the government intends to spend throughout the next year, with some allocations for future fiscal years, pertaining to measures within federal jurisdiction. This is the first budget for Prime Minister Mark Carney’s government. The 494-page budget document includes information about pretty much everything – detailed financial statements, an equity audit, program spending announcements to include services and supports offered within government departments and planned national infrastructure initiatives in important areas to include housing.

We’re here to give you a summary and assessment of the items in the budget that will be extra important for people with disabilities. People with disabilities aren’t often mentioned in the federal budget and there are very few measures specifically outlined to support disabled post-secondary students and new graduates. However, there are investments particularly with respect to youth that will be benefit youth with disabilities in employment and work integrated learning experiences.

Disability-Related Measures

Disability Tax Credit/Canada Disability Benefit

•    $115.7 million over four years, beginning in 2026-27, and $10.1 million per year ongoing, including administrative costs, for a one-time supplemental Canada Disability Benefit (CDB) payment of $150 in respect of each Disability Tax Credit certification, or re-certification, giving rise to a Canada Disability Benefit entitlement retroactive to the launch of the Canada Disability Benefit;
•    Commitment to bring forward legislation to exempt the Canada Disability Benefit from being treated as income under the Income Tax Act.

What does this mean?

Now, when you apply for the Disability Tax Credit, you will receive a payment of $150 to cover costs related to applying for the benefit. If the legislation to exempt the CDB from being treated as income under the Income Tax Act is actually brought forward & passed, you will not be taxed on the CDB. 

What’s missing?

Well, the CDB has been cited as inadequate by pretty much every disability organization due to its high barrier to entry & relatively small financial gain. Calls for the CDB benefit to be increased have been ignored thus far, and it’s also still tied to employment and spousal incomes. Want to learn more about this? Check out our friends at Disability Without Poverty.

Adjusting Medical Cannabis Benefits to Reflect Market Price

•    Saving $4.4 billion over four years – moving from 8% to 6%.

What does this mean?

Individuals who receive financial benefits when purchasing medical cannabis will now have a lower threshold for coverage – if you receive medical cannabis benefits, double-check with your coverage to see how it will affect your bank account.

Major Transfers to Provinces, Territories, and Municipalities

•    The Canada Health Transfer (CHT) is projected to increase from $54.7 billion in 2025-26 to $65.0 billion in 2029-30, supported by the CHT growth guarantee of at least 5 per cent for five years (in effect from 2023-24 to 2027-28), after which it will grow in line with a three-year moving average of nominal GDP growth, with funding guaranteed to grow by at least 3 per cent per year;
•    The Canada Social Transfer, which includes support to the provinces and territories for education, will increase from $17.4 billion in 2025-26 to $19.6 billion in 2029-30, reflecting legislated growth of 3 per cent per year; and
•    Health agreements with provinces and territories are projected to remain at $4.3 billion in 2025-26 and 2026-27, reflecting $2.5 billion per year for tailored bilateral agreements, and $1.2 billion per year in transfers supporting home and community care and mental health and addictions services that expire after 2026-27. Another $600 million per year in transfers for long-term care expires after 2027-28. 

What does this mean?

The federal government transfers money to provinces and territories to supplement their spending on health and social programming. This budget promises that these transfers are in line with inflation. The expiring transfers mean that the provinces and territories will have to negotiate new agreements with the federal government to pay for long-term care and mental health and addictions services. 

What’s missing?

These transfers aren’t set to increase – this means that provinces and territories will likely maintain spending on health and social programs as well. Every province and territory decides by themselves what to spend on based on the federal transfers & some provinces spend their money more wisely than others. Check out the budgets & economic statements of your province/territory to see exactly what they are spending their health and social transfers on.

Youth-Related Measures

Employment-related Measures

•    Supporting 175,000 youth in 2026-27 via:
•    $594.7 million over two years, starting in 2026-27, to Employment and Social Development Canada for the Canada Summer Jobs Program to support around 100,000 summer jobs in summer 2026;
•    $307.9 million over two years, starting in 2026-27, for the horizontal Youth Employment and Skills Strategy to provide employment, training, and wraparound supports (e.g., mentorship, transportation, mental health counselling) to around 20,000 youth facing employment barriers annually;
•    $20.1 million of this is offset by funding already provisioned in the fiscal framework.
•    $635.2 million over three years, starting in 2026-27, to Employment and Social Development Canada for the Student Work Placement Program to support around 55,000 work-integrated learning opportunities for post-secondary students in 2026-27.

What does this mean?

The federal government is continuing the Trudeau government programming for youth economic development in Canada. Canada Summer Jobs and the Student Work Placement Program both support youth employment through paid work placements & the Youth Employment Skills Strategy provides funding to organizations and employers to support youth employment. This includes job training, mentorship, and more distributed directly to organizations that support youth. 

What’s missing?

This budget doesn’t mention any specific groups of people who would benefit from specialized employment support or designate funding for them – people with disabilities aren’t mentioned at all here. We are supportive of funding that promotes youth employment and hope that future funding offers targeted support for young people with disabilities to access employment training and work opportunities.

Student Financial Assistance

•    Intention to propose legislative and regulatory amendments to address integrity issues related to private educational institutions by generally limiting access to the Canada Student Grant for Full-time Students to students attending public educational institutions and not-for-profit private institutions within Canada.
•    Internationally, Canada Student Loans and Grants generally would only be provided to those who attend public institutions. 

What does this mean?

If legislation is passed in Parliament, only students who attend public post-secondary institutions & private educational institutions in Canada will be able to access federal granting and loans programs. Canadians studying internationally will no longer be eligible, unless they attend public educational institutions in other countries. 
What’s missing and what's available?

The Canada Student Grant for Full-time Students is a wonderful benefit offered by the federal government through the Canada Student Financial Assistance Program (grants and loans) to support students in their post-secondary journey. As the cost of living continues to rise, the federal government should look towards making more significant investments in the value of grants offered to post-secondary students as expenses increase each year. The Canada Student Financial Assistance Program provides grants for students with disabilities including an upfront grant and Services and Equipment Grant for eligible disabled students who have permanent disabilities and/or persistent and prolonged disabilities. Budget 2025 confirms the upfront grant of $4,200, with $1.2 billion for the current fiscal year, but small reductions are planned in each subsequent year until 2030.

Conclusion

Budget 2025 doesn’t do a whole lot for Canadians with disabilities in post-secondary education or those transitioning from post-secondary to the workforce. Some assistance may be available when the legislation is fully implemented, but it’s definitely a wait and see situation and it’s critical to continue to monitor what is happening in the House of Commons & the Senate for more information. Investments in the Youth Employment Skills Strategy, the Canada Summer Jobs Program and the Student Work Placement Program are welcome by students with disabilities. It is useful to look at the government's analysis of the impact on measures announced in the budget with a Gender Based + analysis which includes data on persons with disabilities, women, indigenous persons and the 2SLGBTQ+ community, in terms of education and labour market participation. While the permanent funding of the Department of Women and Gender Equality Canada announced in the budget ($660.5 million over 5 years and $132 million in ongoing funding) is to be noted as important for our community, the Gender Based + analysis leaves out disabled persons in the assessment of this funding commitment.

Have thoughts, feelings, or questions about the 2025 federal budget? Leave a comment and weigh in on what stands out to you!