Budget 2025: What It Means for Students

The Bottom Line

Budget 2025 holds steady on skilled trades funding at $135 million per year, increases the Alberta Student Grant by $5 million, and expands total scholarships to $113 million. Post-secondary campuses are getting a $528 million capital upgrade over three years. But student aid eligibility is tightening, PSI tuition is projected to keep rising, and the overall post-secondary operating budget is essentially flat.

Top Measures That Affect You

1. Skilled trades programs budgeted at $135 million in 2025-26, with another $271 million allocated over the following two years. This covers apprenticeship delivery, apprenticeship grants, and adult learning initiatives targeting labour shortages.

2. Alberta Student Grant (ASG) increases by $5 million in 2025-26 and future years. The ASG enhances access to post-secondary education for lower-income students in one-year undergraduate, apprenticeship, and graduate-level programs.

Total scholarships budgeted at $113 million in 2025-26, with up to $60 million funded from the Alberta Heritage Scholarship Fund. Rapid population growth is driving greater demand for scholarship support.

$528 million over three years for post-secondary campus capital, an increase of $167 million (46%) from Budget 2024. Key projects include $100 million for the University of Alberta Biological Sciences Centre, $30 million for the SAIT Campus Centre Redevelopment, and $2 million for Keyano College expansion in nursing and paramedicine programs.

New 8% income tax bracket on the first $60,000 of income. If you work part-time or full-time while studying, you save up to $750 per year. Effective January 1, 2025.

First Nations Colleges Grant increases by $0.5 million to $4 million per year, distributed equally among five colleges in rural and remote Indigenous communities to fund more seats and enhance educational opportunities.

$1 million in planning funds for the Trades and Apprenticeship Promotional Plan, aimed at encouraging young people to enter skilled trades through hands-on activities.

Direct Financial Impact

Income tax: If you earn income through part-time or co-op work, the new 8% bracket on the first $60,000 reduces your provincial tax. A student earning $25,000 could save roughly $250 per year. If you earn below the basic personal amount, you may not see a direct benefit until you enter full-time work.

Alberta Student Grant: The $5 million increase means more funding is available. If you are a lower-income student in a one-year undergraduate, apprenticeship, or graduate program, this could mean a larger non-repayable grant.

Scholarships: The $113 million total means more scholarship dollars are available. Check with your institution and the Alberta Heritage Scholarship Fund for eligibility.

Tuition: Post-secondary institution (PSI) tuition fees are estimated at $2.1 billion in 2025-26, up from $2.0 billion. The budget does not freeze or cap tuition increases. Own-source PSI revenue (including tuition) now represents 58% of PSI operating expense, up from 53% in 2022-23, meaning a growing share of costs is borne by students.

Student aid tightening: Re-introduced academic progress policies and changes to eligibility for students attending some private career college programs are projected to reduce student aid costs by $117 million over three years. This means some students who previously qualified for aid may lose access.

Service Changes

Expert Panel on Post-secondary System Funding and Competitiveness: Appointed in December 2024, this panel is conducting an independent assessment of how post-secondary institutions are funded, including how Alberta compares internationally. Recommendations are expected in time for Budget 2026. This could significantly reshape how your institution is funded.

Post-secondary capital improvements: The 46% increase in campus capital spending means modernized facilities at multiple institutions. The University of Alberta project alone will add nearly 3,200 spaces in high-demand programs. SAIT's new campus centre will provide student-focused health, recreation, and work-integrated learning spaces.

Mental health classrooms: The province is expanding mental health classrooms from 20 to 60, providing clinical support to students with complex mental health needs in K-12 schools. For post-secondary students, mental health supports are primarily funded through institutional operating budgets.

Apprenticeship delivery: Funding is essentially maintained at $47 million for apprenticeship programs in 2025-26. The emphasis is on delivery, apprenticeship grants, and adult learning to address labour market needs in construction, health care, and technology sectors.

Independent academic institutions: $9 million added in 2025-26, and $17 million over the following two years, to close the funding gap between independent academic institutions and similar degree-granting public PSIs.

What's Missing

No tuition freeze or cap: Despite tuition being a growing share of post-secondary funding (now 58% of PSI operating expense), the budget does not implement any tuition controls. If your institution raises fees, you bear the cost.

No new student housing programs: The budget does not include targeted funding for student housing, despite housing affordability being a major concern for students in Edmonton and Calgary.

Flat post-secondary operating budgets: PSI operating expense stays at roughly $6 billion across the three-year forecast, with no meaningful growth. This means institutions may face pressure to cut programs, increase class sizes, or raise fees.

Student mental health funding not broken out: While K-12 mental health classrooms are expanding, there is no dedicated new funding line for post-secondary student mental health services.

No transit support: The budget does not include province-wide student transit passes or subsidies, though Edmonton and Calgary LRT projects continue to receive funding (approximately $2.9 billion combined over three years).

Student loan interest: The budget does not announce any changes to provincial student loan interest rates.

Key Dates

Date	What Happens
January 1, 2025	New 8% tax bracket takes effect (savings on part-time work)
April 1, 2025	New fiscal year and funding levels begin
2025-26	Alberta Student Grant increase of $5M takes effect
2025-26	Expert Panel expected to make recommendations for Budget 2026
2025-26 to 2027-28	$528M in post-secondary campus capital invested
2025-26 to 2027-28	Skilled trades funding: $135M per year plus $271M over two years

Where to Get Help

Alberta Student Grant: Apply through the Alberta Student Aid online portal at studentaid.alberta.ca.

Scholarships: Check the Alberta Heritage Scholarship Fund and your institution's scholarship office. Visit alberta.ca/scholarships.

Apprenticeship programs: Visit tradesecrets.alberta.ca for information on registered apprenticeship programs, grants, and available trades.

Income tax: If you are working while studying, the new 8% bracket applies automatically. File your tax return to claim any education-related credits.

Financial support: Contact your institution's financial aid office for help navigating student aid, scholarships, and bursaries.

Career education: Funding of $102 million over three years supports hands-on learning. Ask your school or institution about career education programs available in your area.