Budget 2025: What It Means for Non-Profits
Alberta Budget 2025 increases women's shelter funding by $19M, allocates $220M for homelessness services, and boosts social services by $833M amid tariff uncertainty.
Seniors, Community and Social Services total expense
$10,603M
+$833M from 2024-25
Homelessness and outreach support
$220M
Women's shelters increase
+$19M
Employment and Income Support
$1,255M
+26% from 2024-25
The Bottom Line
Budget 2025 delivers meaningful increases to the social services that many Alberta non-profits deliver. Total expense for Seniors, Community and Social Services grows by $833 million to $10,603 million, driven by population growth, rising demand for income support, and additional funding in anticipation of U.S. tariff impacts. Women's shelters receive an additional $19 million, homelessness services are funded at $220 million, and employment support jumps 26%. However, overall government operating expense is constrained below population growth plus inflation, meaning non-profits outside the core social services envelope may see flat or declining government grants.
Top Measures That Affect You
1. Women's Shelters: +$19 Million
Budget 2025 increases funding for women's shelters by $19 million. Community Supports and Family Safety receives $130 million in 2025-26, remaining flat through the forecast period. If your organization operates a women's shelter or provides family violence services, this increase addresses growing demand.
2. Homelessness and Outreach: $220 Million
Homeless, Outreach Support Services receive $220 million in 2025-26, with low income transit and homelessness support increasing by $21 million in the prior year and funding remaining at this elevated level. If your non-profit provides shelter, outreach, or harm reduction services, this funding supports your operations. Expense remains at $216 million in the following two years, suggesting a modest reduction after the initial increase.
3. Employment and Income Support: +26%
Employment and Income Support expense surges to $1,255 million in 2025-26, an increase of $258 million or 26% from the prior year. This massive increase is driven by population growth not fully anticipated during previous budget planning, plus $38 million added in anticipation of U.S. tariff impacts. If your organization delivers employment services, career counselling, or workforce integration programs, demand for your services is expected to surge.
4. Disability Services: $1,710 Million
Other disability services programs are budgeted at $1,710 million, an $86 million increase from 2024-25. Persons with Developmental Disabilities grants increase by $73 million, and Family Support for Children with Disabilities rises by $9 million. Non-profits providing disability services should see more funding flowing through these programs. A new Alberta Disability Assistance Program is set to launch in 2026.
5. AISH Maintained at $1,641 Million
Funding for the Assured Income for the Severely Handicapped (AISH) program is $1,641 million in 2025-26. The Fiscal Plan states that overall client income will be unaffected, and disabled Albertans on AISH will remain above the federal benchmark. Non-profits supporting AISH recipients can expect stable client funding levels.
6. Children and Family Services: $1,595 Million
Children and Family Services receives $1,595 million in 2025-26, with increases of $13 million for foster caregivers and $13 million for increasing case complexity as more children and youth experience mental health, addiction, and behavioral difficulties. If your non-profit works in child welfare, foster care support, or youth services, these increases reflect growing demand.
7. Mental Health and Addiction: Recovery Alberta
The new Recovery Alberta agency receives operating expense through Mental Health and Addiction, with total ministry expense at $1,792 million in 2025-26. Community Care and Treatment expense is $752 million, up from $689 million. Non-profits delivering community-based addiction and mental health services may see new opportunities through the recovery-oriented service model.
Direct Financial Impact
Core social services funding growing: If your non-profit operates in the social services space, the $833 million increase in Seniors, Community and Social Services is the most significant signal. Population growth of 2.5% and tariff-related demand are driving increases to core programs your organization may deliver.
Arts and culture under pressure: Arts, Culture and Status of Women receives $157 million in operating expense in 2025-26, essentially unchanged. Total expense is $226 million, down from $251 million in 2024-25. Capital grants decline. If your non-profit operates in the arts and culture space, government funding is tightening.
Tourism and sport flat: Tourism and Sport receives $118 million in operating expense, with total expense declining by $3 million to $133 million. Temporary funding for tourism initiatives and major sport events is concluding.
ASHC programs: The Alberta Social Housing Corporation supports over 110,000 Albertans in 60,746 households through affordable housing, rental supplements, and other programs. ASHC operating programs are budgeted at $343 million, up $23 million. Non-profits delivering housing services may benefit from this increase.
Rent assistance: $6 million continues for rent assistance under the federal National Action Plan to End Gender-based Violence.
Service Changes
Assisted Living Alberta: This new provincial health agency takes over continuing care services. Non-profits providing home care, community care, or assisted living services may face new reporting and contractual relationships under this restructured system.
Recovery Alberta: The new recovery-oriented service model prioritizes a comprehensive range of integrated, community-based services including prevention, early intervention, treatment, and recovery. Non-profits in this space should prepare for a shift toward integrated service delivery.
Alberta Disability Assistance Program: Launching in 2026, this program will better empower those with a disability to work without significant reductions to income assistance or medical benefits. Non-profits supporting employment for people with disabilities should plan for this transition.
Agricultural societies: Regional agricultural societies facing financial challenges receive additional support. If your non-profit is an agricultural society, operational and governance support is available.
First Nations Development Fund: Over $161 million projected in 2025-26 for community-based projects in Indigenous communities. Non-profits serving Indigenous communities may access these funds.
What's Missing
No sector-wide non-profit funding strategy: The budget does not include a comprehensive non-profit sector strategy addressing capacity-building, wage competitiveness with government, or administrative burden reduction for grant-funded organizations.
No cost-of-living adjustment for grants: Despite 2.6% inflation, there is no across-the-board cost-of-living increase for non-profit service delivery contracts. Increases are targeted to specific program areas.
No capital funding for non-profit facilities: While housing capital increases, there is no dedicated capital program for non-profit community facilities such as food banks, community centres, or service hubs.
No volunteer strategy: The budget does not address volunteer recruitment, retention, or recognition supports for the non-profit sector.
No red tape reduction for non-profits: While Service Alberta continues reducing regulatory burden for businesses, there is no specific initiative to simplify grant application and reporting processes for non-profit organizations.
Key Dates
| Date | Event |
|---|---|
| January 1, 2025 | New 8% personal income tax bracket takes effect |
| February 27, 2025 | Budget 2025 tabled |
| April 1, 2025 | 2025-26 fiscal year begins |
| 2025-26 | Recovery Alberta and Assisted Living Alberta begin operating |
| 2025-26 | Women's shelter funding increase available |
| 2025-26 | Employment support demand expected to surge |
| 2026 | Alberta Disability Assistance Program launches |
| 2027-28 | Social services expense grows to $10,867M |
Where to Get Help
- Alberta Seniors, Community and Social Services: For program funding information. Call 310-0000 then 780-644-9992.
- Alberta Nonprofit Network: For sector advocacy and budget analysis. Visit albertanonprofits.ca.
- Alberta Council of Women's Shelters: For shelter funding updates.
- Alberta Mental Health and Addiction: For Recovery Alberta transition information.
- Alberta Treasury Board and Finance: For overall budget details. Visit alberta.ca/budget.
- Your MLA: Contact your local MLA to advocate for non-profit funding priorities.