Standouts From the 2025 Federal Budget

The newly-elected Mark Carney Federal Government has released their first budget, Budget 2025 - Canada Strong. Momentum contributed to pre-budget consultations and we are pleased to see several items that demonstrate the Federal government's commitment to supporting Canadians living on lower incomes.

The main standout items are:

• Automatic federal benefits through tax filing for people living on a low-income. Connecting 5.5 M people living on a low-income to $174M of vital income/benefits by 2029.
• Restricting Private Career Colleges eligibility to Student Financial Assistance. For-profits are no longer eligible for the Canada Student Grants from the Student Financial Assistance Program. Saving $1.0B over four years.
• Lowering barriers to access the Canada Disability Benefit by helping to offset the costs of applying for the Disability Tax Credit for Canada Disability Benefit. Providing a one-time supplemental Canada Disability Benefit payment of $150 to cover the Disability Tax Credit certification, or re-certification. Retroactive to the launch of the Canada Disability Benefit.
• Updating the Income Tax Act to exempt the Canada Disability Benefit from being treated as Income to ensure recipients keep the full value of the benefit.

Our Recommendations

Our recommendations are listed below along with the Budget 2025 items that addressed those recommendations:

Recommendation 1:

Enable automatic tax filing for social assistance recipients to connect low-income Canadians to vital income and government benefits.

Budget 2025:

The CRA will begin to file tax returns for individuals whose taxable income is lower than the federal basic personal amount or provincial equivalent to connect low-income people access federal benefits they are entitled to. An eligible individual would have 90 days to review and submit changes to the CRA and would be able to opt out. This would connect 5.5 M people living on a low-income to $174M of vital income/benefits by 2029.

Recommendation 2:

Ensure that pre-apprenticeship trades training programs are adequately funded to meet the growing demand for skilled tradespersons in Canada.

Budget 2025:

An additional $570 million over three years, starting in 2025-26, through Labour Market Development Agreements with provinces and territories to support training and employment.

Recommendation 3:

Protect vulnerable students, safeguard Canada’s international reputation, and ensure public funds are used responsibly by ensuring the quality and accountability of private career colleges.

Budget 2025:

Restricting Private Career Colleges eligibility to Student Financial Assistance: For-profits are no longer eligible for the Canada Student Grants from the Student Financial Assistance Program. Limits are intended to prevent student financial assistance from flowing into for-profit schools that may not support employment outcomes for students.

Recommendation 4:

Simplify the Disability Tax Credit assessment process to connect individuals with disabilities to vital benefits and credits.

Budget 2025:

Lowering barriers to access the Canada Disability Benefit by helping to offset the costs of applying for the Disability Tax Credit for Canada Disability Benefit, providing a one-time supplemental Canada Disability Benefit payment of $150 for each Disability Tax Credit certification, or re-certification. Retroactive to the launch of the Canada Disability Benefit.

Also, updated the Income Tax Act to exempt the Canada Disability Benefit from being treated as Income.

Recommendation 5:

Sustain investments from 2024-2029 in Resilient Futures, through Employment and Social Development Canada to enhance financial sustainability and well-being nationwide.

Budget 2025:

Investments sustained.

More details about Budget 2025 are available here. Momentum looks forward to future consultations as we continue to bring forward policy recommendations supporting Calgarians and Canadians living on lower incomes.