On February 27, the Government of Alberta announced Budget 2025, which reflects the government’s priorities and commitments for the upcoming year, including health care, education, employment and income support, and public safety. 

So, what does the budget mean for Calgarians and Albertans, especially those living on a low income? We’ve broken it down for you below—the strengths, the challenges and the uncertainties. 

The Strengths  

Maintaining access to transit: The province will continue partially funding the Low Income Transit Pass, which helps remove financial barriers for low-income Calgarians so they can stay employed and more fully participate in the community. The province will maintain its $6.2 million contribution to Calgary’s subsidized transit pass program, reversing last year’s temporary withdrawal of funds. 

Lower personal income tax: The government has introduced a new 8% tax bracket for incomes up to $60,000, saving Albertans up to $750 in 2025, which is around $1500 per household. Albertans earning less than $60,000 will see their personal income taxes fall by 20%. The province estimates this will add over $1 billion to Albertans’ pockets in 2025. 

More investment in affordable housing: The government is increasing investment in affordable housing to address the growing concern across the province. Aside from investing $23 million more than last year in social, specialized,  affordable housing, and rental assistance, key initiatives also include (each over three years): 

• $655 million for the Affordable Housing Partnership Program, an increase of $250 million from last year, to support the goal of creating 13,000 affordable housing units.  
• $113 million for Stronger Foundations (Alberta’s affordable housing strategy), including $21 million in new funding to maintain government-owned housing. The government aims to deliver 2,700 new affordable housing units and rental subsidies in 2025-2026, and 4,300 in 2027-28. The government is also developing a long-term maintenance strategy, ensuring government-owned affordable housing is suitable to community needs.  
• $150 million, including a doubling to $50 million in new funding, for the Seniors Lodge Modernization Program.  
• $92 million, including $25 million in new funding, for the Indigenous Housing Capital Program to Indigenous communities to construct, purchase, or redevelop housing for Indigenous peoples. 

Addressing gender-based violence: An additional $19 million over three years will be invested in women’s shelters to support the increasing demand for women and children fleeing abuse and violence. There is also a $6 million rent assistance program as part of the National Action Plan to End Gender-Based Violence. 

More assistance for seniors: To address population growth and annual rate increases, support for low-income seniors through the Alberta Seniors Benefits will increase by $33 million (6.5%) in 2025-26 and rise another 14.6% by 2027-28. The government has also allocated $572.8 million in grants and low-interest home equity loans to support over 197,000 low-income seniors.   

Increased income supports: Budget 2025 significantly increases employment and income support by 26% to cover population growth and anticipated U.S. tariffs, ensuring that Albertans who need financial support to meet their basic needs continue to receive it. There is also $22 million slated for administration reform to Income Support and Assured Income for the Severely Handicapped (AISH).   

Additional investment in the Alberta Child and Family Benefit: To address child poverty, the government is planning to spend an additional $29 million on the Alberta Child and Family Benefit, which helps lower- and middle-income families make ends meet. The increased investment is due to population growth and a 2% rate increase. 

The Challenges 

Property tax increase: In Alberta, local governments (like the City of Calgary) collect an education property tax for the province. This tax is added to the regular property taxes homeowners pay to their municipalities. As part of Budget 2025, the Government of Alberta is increasing the education property tax, which means Calgarians will see an average increase of $239 per year in their property taxes. Learn more about how your property taxes are calculated here.  

Construction of new homes slowing down: While housing starts remain high at 43,000 units in 2025, they are expected to decline in the coming years, with supply easing to 37,800 units by 2028. Last year, Alberta set a new record for housing starts, with 46,632 homes under construction, of which over 20,000 were in Calgary. However, with lower anticipated housing starts in 2026 and 2027, the government should consider investments in developing and maintaining non-market housing that will come online when this anticipated slowdown occurs. The government acknowledged that the increasing costs of building materials, partially driven by possible tariff pressures, will probably slow growth in the coming years. 

Cuts to capital investment for equity-denied groups and the arts: Despite small- to modest operational and program funding increases, there are substantial cuts to capital investment across Indigenous Relations and Arts, Culture, and Status of Women.  

• Indigenous Relations’ total spending for capital and operating budgets will remain steady at $238 million. The $7 million decrease in capital grants to support community infrastructure is somewhat offset by the $8 million increase in operating expenses. 
• Arts, Culture, and Status of Women will experience a $36 million cut in capital funding to maintain or redevelop building infrastructure in 2025-2026. It will not increase by the end of this budget cycle. Operational funding will remain static at $157 million in 2025, before falling to $151 million in 2027-28.  

The Uncertainties  

Income support for people with disabilities: The government is decreasing funding for the administration of the AISH program, which provides financial and health benefits for Albertans with a permanent medical condition that prevents them from earning a living through employment. There are currently over 77,000 Albertans receiving AISH. The government explained the reduction stems from savings in program delivery costs, while the creation of the new provincial Alberta Disability Assistance Program (ADAP) may also be a reason for the decreased AISH funding. With ADAP expected to begin in July 2026, it remains to be seen what impact this will have on Albertans living with disabilities. Typically, people with disabilities face increased barriers to securing employment, which may impact the predictability of the amount of income support they receive. 

Decreased funding for homelessness: This year, funding for homelessness and outreach support services was reduced by $4 million, from $224 million in 2024-25 to $220 million in 2025-26. An additional $4 million cut is planned, bringing the total funding to $216 million for 2026-27 and 2027-28. The Government of Alberta is shifting its approach, transitioning from funding through seven Community-Based Organizations (CBOs) to directly supporting service providers by the end of 2025. The Ministry has indicated that savings from this change will not impact frontline programming. According to the SCSS Business Plan, $212.7 million has been allocated for 2025-26 to support homeless shelters, Navigation and Support Centres, and housing and support programs for Albertans experiencing homelessness.  

Reduction in legal aid funding: Government grants to Legal Aid Alberta have been reduced by $22 million. The Alberta Law Foundation, which partially funds Legal Aid Alberta, has been mandated by the Government to double its contribution to legal aid, likely to offset the cuts in funding made by the government. Because the Alberta Law Foundation also funds other organizations through grants, there is a real possibility that the contributions to the other organizations will have to be cut, limiting access to justice for low-income Albertans.   

Reliance of public services on income from non-renewable resources: Alberta’s financial health heavily depends on non-renewable resources. With increasing pressure to raise spending to match our growing population, a continued reliance on a volatile income source risks the well-being of many Albertans who rely on public services. In 2025, Alberta expects to receive $17.1 billion in revenue from non-renewable resources, down from $25.2 billion in 2022.