Budget 2025: What It Means for Seniors Care / Long-term Care
Alberta Budget 2025 creates Assisted Living Alberta at $3.8B, invests $1.9B in housing/care capital, and grows the Seniors Benefit to $540M.
Assisted Living Alberta Operating
$3,848M
+$184M (+5%)
Alberta Seniors Benefit
$540M
+$33M (+6.5%)
Housing & Care Capital (3yr)
$1,935M
Largest social capital
Seniors Drug Program
$863M
700,000+ seniors
Sector Impact Summary
Seniors care and long-term care is one of the most heavily invested sectors in Budget 2025, reflecting the fiscal weight of Alberta's aging population. The Ministry of Seniors, Community and Social Services receives total expense of $10,603 million, an increase of $833 million from 2024-25, making it the second-largest ministry by expenditure after Health. While the ministry encompasses much more than seniors (including disability services, income support, and affordable housing), the seniors-specific programs are substantial and growing.
The centerpiece of the seniors care budget is Assisted Living Alberta, a new provincial health agency launching April 1, 2025, with operating expense of $3,848 million. This agency will manage the full continuum of care, from assisted living and home care to community care, housing, and wraparound social services. The creation of a dedicated agency signals a structural commitment to improving the quality, coordination, and accountability of continuing care.
The Alberta Seniors Benefit grows to $540 million (up $33 million), reaching $619 million by 2027-28 as the seniors population expands. The Seniors Drug program provides $863 million to support over 700,000 seniors. And the capital plan allocates $1,935 million over three years for housing, continuing care facilities, and lodge modernization, the largest social infrastructure investment in the budget.
Federal Aging with Dignity funding of approximately $40 million per year supports wage enhancements for Personal Support Workers and improved continuing care outcomes.
Key Budget Measures
Assisted Living Alberta
The new provincial health agency assumes responsibility for the full continuum of continuing care with an operating budget of $3,848 million in 2025-26, a $184 million (5%) increase from 2024-25 driven primarily by population growth. Assisted Living Alberta consolidates assisted living, home care, community care, housing, and wraparound social services under a single organizational umbrella, transferred from the former Alberta Health Services structure to the Seniors, Community and Social Services ministry. This restructuring is designed to improve coordination between health and social services for the aging population.
Alberta Seniors Benefit
Support to lower-income seniors increases by $33 million to $540 million in 2025-26, growing to $619 million by 2027-28. The growth reflects both the expanding seniors population and annual rate escalation. This is a direct cash benefit program that supplements income for Alberta's lowest-income seniors.
Seniors Drug Program
Through the Ministry of Health's Drugs and Supplemental Health Benefits envelope, the Seniors Drug program provides $863 million to support over 700,000 Alberta seniors with prescription drug costs. Total drugs and supplemental health benefits spending of $1,873 million grows to $2,059 million by 2027-28.
Aging with Dignity Federal Funding
Federal funding of approximately $40 million per year for three years is forecast under the Aging with Dignity agreement. The funding supports wage enhancements for Personal Support Workers (PSWs) and enables seniors to receive home care or access care facilities in their communities. This federal contribution addresses the workforce crisis in continuing care, where low wages have made recruitment and retention of care workers persistently difficult.
Alberta Social Housing Corporation
ASHC total expense increases by $245 million to $641 million in 2025-26, with most of the increase in capital grants ($221 million increase). ASHC supports over 110,000 Albertans in 60,746 households through affordable housing, rental supplements, and other programs. While not exclusively seniors-focused, a significant proportion of ASHC beneficiaries are older adults.
Seniors Lodge Modernization Program
Capital investment of $150 million over three years ($50 million per year) modernizes lodges that provide safe, affordable housing for lower-income seniors to age in their communities. Many lodges are decades old and require significant upgrades to meet current standards.
Continuing Care Capital Program
The largest capital allocation for continuing care is $649 million over three years, funding the construction and renovation of continuing care facilities across the province. This is supplemented by specific facility projects:
- Good Samaritan Society Continuing Care (Edmonton): $63 million
- Bethany Continuing Care Centre (Calgary): $57 million
- Bridgeland Riverside Continuing Care Centre (Calgary): $64 million (via Infrastructure)
- Gene Zwozdesky Centre at Norwood (Edmonton): $81 million (via Infrastructure)
- Pine Grove Manor: $16 million
Affordable Housing Partnership Program
The $655 million Affordable Housing Partnership Program over three years provides capital grants for affordable housing development, with significant portions benefiting seniors through purpose-built seniors housing.
Seniors Facilities Capital Maintenance and Renewal
$130 million over three years maintains and renews aging seniors facilities and housing stock.
Funding Changes
| Category | 2024-25 Forecast | 2025-26 Estimate | Change |
|---|---|---|---|
| SCSS Total Expense | $9,770M | $10,603M | +$833M (+8.5%) |
| Assisted Living Alberta Operating | $3,664M | $3,848M | +$184M (+5%) |
| Alberta Seniors Benefit | $507M | $540M | +$33M (+6.5%) |
| ASHC Total Expense | $396M | $641M | +$245M (+61.9%) |
| SCSS Capital Grants | $318M | $476M | +$158M (+49.7%) |
Source: Fiscal Plan 2025-28, Expense, pp. 79-80.
The $833 million increase is the largest single ministry expenditure increase in the budget. Capital grants nearly double from $318 million to $476 million, growing further to $701 million by 2027-28, indicating an accelerating capital investment program.
Capital Investment
The Seniors, Community and Social Services capital plan totals $1,935 million over three years, making it the fourth-largest ministry capital allocation:
| Project | 3-Year Total |
|---|---|
| Affordable Housing Partnership Program | $655M |
| Continuing Care Capital Program | $649M |
| Seniors Lodge Modernization Program | $150M |
| Seniors Facilities & Housing Capital Maintenance | $130M |
| Affordable Housing Strategy | $113M |
| Indigenous Housing Capital Program | $92M |
| Good Samaritan Society Continuing Care | $63M |
| Bethany Continuing Care Centre | $57M |
| Pine Grove Manor | $16M |
| Affordable and Specialized Housing | $5M |
| Other (Public Guardian info system, IT) | $5M |
Additional continuing care facilities funded through Infrastructure ministry:
- Bridgeland Riverside Continuing Care Centre (Calgary): $64M
- Gene Zwozdesky Centre at Norwood (Edmonton): $81M
- Complex Needs Residential Build PDD Clients: $31M
Source: Capital Plan Details by Ministry 2025-28.
Risks
Aging Population Accelerating Demand (High). Growth in the elderly population is consuming the largest share of health and social services. The Seniors Benefit trajectory from $540 million to $619 million by 2027-28 (a 15% increase in just two years) illustrates the fiscal pressure. Alberta's population is both growing and aging, compounding demand for continuing care, home care, drug programs, and income support.
Assisted Living Alberta Organizational Transition (High). The creation and launch of a new provincial health agency on April 1, 2025, introduces significant execution risk. Assisted Living Alberta must manage the full continuum of continuing care during a complex organizational transition while maintaining service quality for some of the province's most vulnerable residents. Staff transfers, system integration, reporting structures, and service contracts all must be managed simultaneously.
Continuing Care Workforce Challenges (High). The continuing care sector faces persistent workforce shortages, particularly for Personal Support Workers and health care aides. The $40 million annual Aging with Dignity funding supports wage enhancements, but recruitment and retention remain systemic challenges driven by demanding working conditions, shift requirements, and competition from other sectors for workers. Without sufficient workforce, new facilities cannot be operated at capacity.
Affordable Housing Supply Gap (Medium). Despite the $767 million ASHC capital commitment over three years (targeting 6,300 new affordable housing units), Alberta's rapid population growth creates persistent affordable housing demand that may outpace supply. Construction cost inflation further reduces the number of units delivered per dollar invested.
Capital Grant Cost Escalation (Medium). Capital grants grow from $476 million in 2025-26 to $701 million by 2027-28, a 47% increase. Construction cost inflation, labour shortages, and potential tariff-related material cost increases could reduce the actual number of continuing care beds and housing units delivered.
Federal Funding Uncertainty (Medium). The Aging with Dignity agreement provides $40 million annually, but federal funding agreements are time-limited and renewal is not guaranteed. If federal funding for PSW wage enhancements lapses, the province would need to absorb the cost or face further workforce attrition.
Opportunities
Assisted Living Alberta as Integrated Care Model. The new agency has the potential to deliver a more coordinated, person-centred approach to continuing care by integrating home care, community care, assisted living, and social services under one organizational structure. If transition is managed effectively, this model could improve outcomes, reduce duplication, and enable more seniors to age in place.
Massive Housing and Care Infrastructure Investment. The nearly $2 billion in capital over three years is one of the largest social infrastructure commitments in Alberta's history. The combination of continuing care capital ($649 million), affordable housing ($655 million partnership program plus $113 million strategy), and lodge modernization ($150 million) will meaningfully expand the province's capacity to house and care for aging Albertans.
Lodge Modernization Enabling Aging in Community. The $150 million lodge modernization program directly supports the policy objective of enabling lower-income seniors to age in their communities. Modernized lodges provide safe, affordable, and socially connected living environments that can delay or prevent the need for more intensive and costly continuing care.
Continuing Care Transformation. Major facility investments such as the Bethany Continuing Care Centre ($57 million), Good Samaritan Society ($63 million), Bridgeland Riverside ($64 million), and Gene Zwozdesky Centre ($81 million) will provide modern, purpose-built continuing care environments that improve resident quality of life and operational efficiency.
Alberta Disability Assistance Program. Launching in 2026, this program will expand employment supports for disabled Albertans, including those who are aging, while maintaining income assistance and medical benefits. This has particular relevance for the working-age disabled population approaching senior years.
What's Missing
Budget 2025 does not include a comprehensive dementia strategy despite the growing prevalence of Alzheimer's and other dementias among aging Albertans. There is no specific home care expansion program with measurable targets for the number of seniors receiving home-based services. Caregiver support programs for family members providing unpaid care to aging relatives are not highlighted. The budget does not address the geographic distribution of continuing care capacity, which remains concentrated in urban centres while rural communities face significant gaps. Palliative and end-of-life care programs receive no specific new funding. Standards and accountability frameworks for Assisted Living Alberta are referenced generally but not detailed. The budget does not specifically address seniors' mental health services beyond what is covered by the broader mental health and addiction portfolio.
Net Assessment
Seniors care and long-term care receives a positive assessment in Budget 2025. The $833 million increase for Seniors, Community and Social Services, the creation of Assisted Living Alberta as a dedicated provincial health agency, and nearly $2 billion in capital investment over three years demonstrate that the government recognizes the fiscal and service delivery implications of Alberta's aging population.
The numbers are significant: $3.8 billion for Assisted Living Alberta operations, $540 million (growing to $619 million) for the Seniors Benefit, $863 million for the Seniors Drug program, $649 million for continuing care capital, and $150 million for lodge modernization. These are not token investments; they represent a structural fiscal commitment to aging Albertans.
The risks are equally significant. The Assisted Living Alberta organizational transition is the most complex change in the entire health system restructuring, involving the full continuum of care for the most vulnerable population. Workforce shortages in continuing care are structural, not cyclical, and no amount of capital investment helps if there are insufficient workers to staff the facilities. And the escalating cost trajectory, with capital grants growing from $476 million to $701 million by 2027-28, reflects the compounding demands of a growing seniors population that will only accelerate in the years ahead.
This is a sector where the investment is large, the need is larger, and the execution challenge of organizational transition will determine whether the fiscal commitment translates into better outcomes for Alberta's seniors.