2025-2026 Provincial Budget Highlights

2025-26 Provincial Budget Highlights

The 2025-2026 Provincial budget was released February 27, 2025.

Sector highlights include the following:

Attracting more investment through low corporate income taxes. At 8%, Alberta’s corporate income tax rate is 30% lower than the next lowest province.
The new 8% personal income tax bracket is for Albertans earning up to $60,000 will be implement, 2 years ahead of schedule saving families $1,500 in 2025.
The Heritage Fund will continue to increase the fund to $250 billion by 2050.

Arts, Culture and Status of Women

Key objective in the new ACSW Business Plan is to promote and support non-profit organizations, including working with community partners to develop a plan to increase volunteerism across the province.
CIP is at $14.025 million for 2025-26 a $2 million decrease,
CFEP funding stays the same at $50 million for 2025/26.
The 3-year increase will expire in 2026-27 and CFEP will go back to previous level of $25 million.

Children and Family Services

Child Intervention funding is increasing by $58 million to $957 million in 2025-26 primarily to support contracted agencies facing recruitment challenges and rising costs.
TAP – Youth in Care Funding increased by $6 million in 2025-26 and by $14 million by 2027-28, as demand for these services increases.

Immigration and Multiculturalism

There will be a cumulative total of $23.2 million in funding over three fiscal years, from 2025-26 to 2027-28, is allocated for the Alberta Advantage Immigration Program to attract newcomers to support the province’s labour market needs and economic growth by issuing nomination certificates towards permanent residence.
A cumulative total of $10.7 million in funding over three fiscal years, from 2025-26 to 2027-28, is allocated for grants to support workforce integration initiatives to assist newcomers with integrating into the province’s workforce.
A cumulative total of $13.5 million in funding over three fiscal years, from 2025-26 to 2027-28, for grants to ethnocultural communities and organizations to provide supports and services to help address racism and build diverse and inclusive multicultural communities throughout the province.

Jobs, Economy and Trade

In 2025-26, the ministry will allocate $1.6 billion to increase access to affordable, high-quality and inclusive licensed child care.
In 2025-26, the ministry will allocate $323.6 million to support the recruitment and retention of early childhood educators working in licenced child care.

Mental Health and Addiction

$1.7 billion to support addiction and mental health services to increase access to the supports Albertans require to pursue recovery and personal wellness. This includes implementation of the compassionate intervention framework, support for Recovery Alberta services, new recovery communities, and to expand mental health classrooms for clinical support to students with complex mental health needs.

Seniors, Community and Social Services

In 2025-26, $105 million is allocated through Family and Community Support Services to municipalities and Metis Settlements to develop and deliver preventive social services programming.
There will be no other changes in funding to Family and Community Support Services in 2025-2026.
Funding for disability services increased by $86 million from 2024-25, with grands under Persons with Developmental Disabilities increasing by $73 million, Family Support for Children with Disabilities increasing by $9 million and program support up by $4 million. Increases are driven by caseload pressures.
Women’s shelters will receive $19 million over three years to support increasing demand and costs of providing services – this is in addition to the $10 million already received through the Safe Streets Action Plan.
$3.8 billion for focus on making the full continuum of care available to all Albertans, from assisted living, home care and community care to housing and social supports with wrap around social services.
In 2025-26, $212.7 million is allocated to support homeless shelters, Navigation and Support Centres, and housing and supports programs to assist Albertans experiencing homelessness.

To find out more visit: Budget | Alberta.ca