In late February, the Government of Alberta delivered its 2026 budget, which highlighted its financial priorities for the next several years. In fiscal 2026/27, the province intends to spend a total of $83.9 billion. This marks a 5.6% year-over-year increase and projected a $9.4 billion deficit. The budget was touted as investing in what matters to Albertans, with noted priorities including health, education, skills training, and public safety.  Here we break down some key budget decisions and how they may impact low-income Albertans.  
 

Vibrant Communities Calgary (VCC) is welcomes continued investments in growing and maintaining Alberta’s affordable housing supply.  Budget 2026 includes $768 million over three years for the Affordable Housing Partnership Program (a $113 million increase from last year) towards Stronger Foundations’ goal of creating 13,000 affordable housing units. The government says that since 2021, the program has “supported the construction of 6,856 new affordable units.”  Budget 2026 also maintains commitments to $150 million for the Lodge Modernization program over three years, but decreases investment for the Indigenous Housing Capital Program by $17 million (to $75 million over three years). By sustaining capital funding for affordable housing while maintaining broader support for supply growth, the province is reinforcing its reputation as leaders in homebuilding across Canada. Budget 2026’s investments will help expand Alberta’s affordable housing supply and improve affordability for homeowners and renters. 
 

Budget 2026 increases investment in affordable child care in Alberta by $237 million, a 12.6% increase, keeping universal parent fees at $15 per day for this fiscal year.  VCC will bemonitoring ongoing negotiations for a long-term federal child care agreement and their implications for affordable child care in future years, particularly for low-income families. Access to affordable, high-quality child care is a key economic driver, proven to support parents (and particularly women) enter or re-enter the workforce.  High quality child care also supports key levers of poverty reduction across the life span, including early literacy and early childhood health and development. 

 

Budget 2026 allocates $405 million this year to the Alberta Child and Family Benefit (ACFB), an increase of $30 million, or 8%.  The increased expenditure is attributed to 2% indexation based on the Alberta Escalator policy, population growth and higher phase-out income thresholds. VCC is pleased that more low-income families will have access to this essential benefit, and that families are able to earn slightly more while maintaining their base and working components.  The ACFB is an essential poverty reduction measure in Alberta and is largely credited with reducing the child poverty rate in Alberta by 30% between 2015 and 2020.  As child poverty in Canada has risen since the pandemic (child poverty has more than doubled since 2020 across Canada), increased investment is needed and welcome. 

 

Budget 2026 included long-awaited details regarding the province’s new income support framework for people with disabilities, the Alberta Disability Assistance Program (ADAP). Based on the information contained within the budget, ADAP will be similar in design to what was proposed last year, ahead of the program’s public consultation window and will delineate those with severe disabilities based on their ability to work. To account for increased employability, ADAP will provide a lower maximum benefit to $1,740 from $1,940, but provide additional work readiness supports. For many Albertans currently receiving AISH, the addition of ADAP will mean even less income in the long run, potentially forcing them deeper into poverty. Read more about ADAP in our recent blog. * 

In Alberta, financial assistance for those without disabilities is provided through Alberta Income Support. The program has two streams: those who can maintain full-time employment are assigned to the Expected to Work (ETW) category, and those who cannot are assigned to the Barriers to Full Employment category. Budget 2026 indicates that a six-month maximum will be legislated for ETW recipients who fail to comply with program requirements. The specific details of what this will mean in practice are unclear at present; however, the government believes this change will save $44 million this fiscal year alone, indicating that many recipients may be removed from the program. Though VCC understands the importance of complying with program requirements, discontinuing benefits could have drastic impacts on households and may result in increased costs to the government in the long run. VCC strongly recommends that ETW recipients be assessed for transition to programs that may better meet their needs before exiting them from social assistance altogether.  

 

Budget 2026 announces a 9% reduction in the eligibility threshold for low-income seniors to receive the Alberta Seniors Benefit and accompanying Supplementary Accommodation Benefit. This will mean that a single individual earning more than $31,641 per year will no longer be eligible to receive the benefit. Previously, the cutoff was $34,770.  For comparison, the annual living wage income for a single individual in 2025 was $48,754 (the income needed to cover all basic expenses necessary for a modest standard of living). The Market Basket Measure (MBM) poverty threshold for a single individual in Calgary is $28,920. Neither the Living Wage nor the MBM are meant to measure income adequacy for seniors; which are likely both higher with increased costs in key expense categories like health. It is not immediately clear how many seniors will lose access to the benefit by the change. 

 

Budget 2026 presents a mix of progress and ongoing challenges for low-income Albertans. Investments in affordable housing, childcare, and family benefits reflect encouraging steps toward supporting those who need it most, while other changes in disability supports, income assistance, and seniors’ benefits require further monitoring. As these policies unfold, it is imperative to keep listening to the experiences of individuals and families across the province and to ensure that programs evolve in ways that promote stability, dignity, and wellbeing.