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Govt of Canada Federal Spring Economic Update 2026

Selfadvocatenet.com coverage of govt of Canada Federal Spring Economic Update 2026

highlight piece out where disabilities affected in this 

 

Bringing Down the Costs of Groceries and Essentials

Making it Easier to Access the Disability Tax Credit

The Disability Tax Credit provides significant tax relief for persons with disabilities and their supporting family members. Eligibility for the credit serves as a key requirement for other supports including the Canada Disability Benefit, the Child Disability Benefit, and the Registered Disability Savings Plan along with the Canada Disability Savings Grant and Bond.

Each year, more Canadians are accessing the Disability Tax Credit, yet barriers in navigating the application process remain for many. The government is committed to supporting persons with disabilities and their families to access all the supports they need. Medical practitioners are required to certify an individual’s impairment and its impacts on basic activities of daily living to ensure that the eligibility criteria for the credit are applied consistently and fairly, but this does add to their administrative burden.

  • To improve the Disability Tax Credit application for persons with disabilities and their families, and to reduce paperwork for medical practitioners, the Spring Economic Update 2026 proposes to:
    • Streamline the application process for individuals with a formal diagnosis of certain long-lasting medical conditions. These conditions, listed in the Tax Measures: Supplementary Information annex, have been identified through the Canada Revenue Agency’s experience in processing applications as satisfying the disability impact criteria for the credit. This proposal would not change the disability criteria to qualify for the credit and the Canada Revenue Agency would continue to have authority to ask for additional information to verify that these criteria are met. This measure would apply for the 2026 and subsequent taxation years.
    • Expand the list of medical practitioners who can certify eligibility for the Disability Tax Credit to include podiatrists (for a specific type of impairment) and broaden the types of impairment that can be certified by physiotherapists, speech-language pathologists and occupational therapists, within the scope of their training and practice. This measure would apply to Disability Tax Credit certificates issued after 2026 for the 2027 and subsequent taxation years.
    • Recognise provincial or territorial public guardians and trustees as being qualified to certify for the Disability Tax Credit for adults in their care for property matters who have a valid certificate of incapacity based on a medical practitioner’s assessment of their mental impairment. This measure would apply to the 2026 and subsequent taxation years.

These changes are expected to provide $345 million over six years, and $86 million per year ongoing, in tax relief under the Disability Tax Credit and via increased payments of federal benefits (such as the Canada Disability Benefit and the Child Disability Benefit), starting in 2025-26.

  • Further, to ensure applications are processed in an accurate and timely manner, the Spring Economic Update 2026 proposes to provide $42.5 million over five years, starting in 2026-27, to the Canada Revenue Agency to administer these changes.

Making Essentials More Affordable Through the Canada Groceries and Essentials Benefit

To support those most affected by the rising price of food, in January 2026, the federal government announced the new Canada Groceries and Essentials Benefit (CGEB) to help more than 12 million Canadians afford day-to-day essentials.

The CGEB builds on the existing Goods and Services Tax (GST) Credit and will provide $11.7 billion in additional support over six years through:

  • A one-time top-up payment to be issued June 5th—equal to a 50 per cent increase in the annual 2025-26 value of the GST Credit. This delivers $3.1 billion in assistance to individuals and families who currently get the GST Credit.
  • An increase in the value of the GST Credit by 25 per cent for five years starting in July 2026. This increase delivers $8.6 billion in additional support over five years, starting in 2026-27, including to 500,000 new individuals and families.

Combined, this means that a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years; and a single person will receive up to $950 this year, and about $700 a year for the next four years.

The benefit will be paid quarterly and is in addition to existing benefits, such as the Canada Child Benefit, the Canada Disability Benefit, and the Guaranteed Income Supplement.

2.5 Empowering Canadians

The world is more challenging and divided. Canadians feel this every day. But Canadians have never waited around for the world we wish to see. Canada has always been built by the people who did hard things, who showed up when it mattered most, and who took care of each other. That is still what this moment asks of us.

Strong Canadian communities are essential in our goal of building Canada and ensuring we fulfill our promise. Together, we are taking clear, decisive action to ensure communities remain safe and welcoming spaces to live, work, learn, worship, and play. This includes strengthening local journalism so Canadians can remain informed about and engaged in the communities where they live; investing in small craft harbours that sustain coastal livelihoods; advancing accessibility so persons with disabilities can fully participate in community life; renewing Canada’s sport system; and providing supports to ensure that Indigenous communities are healthy and vibrant.

Empowering Indigenous Communities

Supporting Indigenous-led services and supports rooted in their unique cultures is essential to this government’s commitment to advance reconciliation. It ensures critical services like education, family services, social services and community governance meet the needs of Indigenous families, communities and individuals. These services are central to fostering a strong sense of identity and belonging, and support the long‑term growth and success of Indigenous people.

  • As part of this commitment, the government previously annnounced:
    • $359 million over three years, starting in 2026-27, to support data collection and Indigenous governance and capacity programs, enabling First Nations to effectively deliver community-based services. This funding will ensure First Nations can sustain core functions necessary to deliver essential services and actively participate in Canada’s economy, while balancing community responsibilities and keeping pace with population growth;
    • $168 million over five years, starting in 2026-27, to support Urban Programming for Indigenous Peoples so that Friendship Centres across Canada can continue to provide critical supports and services to their community members; and
    • $592 million over nine years, starting in 2025-26, for social support services for people living on reserve with chronic illness or disability under the Assisted Living Program so that they can maintain their independence and participate in their communities.
  • To ensure First Nations, Inuit, and Métis individuals and communities have access to opportunities to grow and reach their full potential, the Spring Economic Update 2026 proposes to provide the following funding to Indigenous Services Canada:
    • $601 million in 2026-27 to support high-quality, culturally relevant elementary and secondary education on reserve that meets the needs of students so that First Nations youth can participate fully in Canada’s skilled workforce; and
    • $700 million over six years, starting in 2025-26, to continue to support Indigenous communities to implement their own solutions to protect children and families by exercising their jurisdiction under An Act respecting First Nations, Inuit and Métis children, youth and families.

Ensuring Canadians Can File Their Taxes in Their Communities

The Community Volunteer Income Tax Program (CVITP) Grant supports community organizations in hosting tax preparation clinics, and arranging for volunteers to prepare income tax and benefit returns for individuals with modest incomes and simple tax situations, free of charge. These community tax clinics represent a trusted community resource, ensuring Canadians can receive the benefits, credits, and refunds to which they are entitled. This work complements the government’s commitment to introducing automatic federal benefits for lower-income individuals.

In 2025, the program supported over 3,500 organizations with almost 20,000 volunteers who helped file close to 1.1 million returns—delivering almost $2.6 billion in federal refunds, credits, and benefit entitlements. Approximately 17 per cent of returns filed through the CVITP in 2025 were from individuals who had not filed a tax return in previous years—helping Canadians enter the tax system and access the benefits and credits to which they may be entitled.

On February 3, 2026, the Secretary of State (Canada Revenue Agency and Financial Institutions) announced the CVITP Grant would be renewed for the next three years.

  • The Spring Economic Update 2026 proposes to provide $18.7 million over three years, starting in 2026-27, to the Canada Revenue Agency to renew and expand the CVITP Grant.

Gender and Diversity Impacts Spotlight

The government is supporting Canadians by addressing cost-of-living pressures, strengthening community safety, and investing in inclusive, resilient communities. This includes supporting critical programs and services for Indigenous people, promoting sport participation, strengthening safeguards against financial fraud, supporting communities at risk of hate-motivated crimes, and making tax administration easier.

  • The Canada Groceries and Essentials Benefit is targeted at low- and modest-income individuals and families, and will provide support to more than 12 million Canadians. Single individuals, single mothers, Indigenous people, and persons with disabilities will particularly benefit from extra support to help with day-to-day essentials, as they are more likely to have lower incomes. It is estimated that over three-quarters of the additional support will go to singles (with and without children), of which about one-third will go to single women without children and one-fifth to single mothers. More than half of seniors will receive additional assistance, including three-quarters of single seniors.
  • Supporting the Nutrition North Canada Retail Subsidy is targeted at 124 isolated communities, the majority of which are Indigenous. The share of the population living in food insecure households in Canada’s North is much higher than the national average of 22.9 per cent—reaching 62.6 per cent in Nunavut and 27.6 per cent in the Northwest Territories, while Indigenous families are around twice as likely as non-Indigenous families to face food insecurity. Groups at higher risk of facing food insecurity, such as women, children, lone-parent households, persons with disabilities, and elders, would predominantly benefit from this measure.

Investing in Sport—from Playground to Podium will help increase participation of underrepresented groups, directly benefitting women and girls, persons from low-income households, Indigenous people, Black and racialised people, and persons with a disability. Funding will also support high-performance athletes, who tend to be younger (below 35 years) and low-income.

Making it Easier to Access the Disability Tax Credit would benefit persons with severe and prolonged disabilities, who are disproportionately low-income and age 65 or older, and their supporting family members. Barriers like accessing a medical professional to certify eligibility for the credit or navigating the application process can limit uptake of eligible supports. Low and modest-income working-age individuals with a severe and prolonged disability, who generally face higher poverty rates than those without disabilities, and families with children with severe disabilities may also benefit from accessing support linked to the credit, such as the Canada Disability Benefit, Child Disability Benefit, and Registered Disability Savings Plan (including federal grants and bonds).

 

This is on Govt of Canada Website go to the link here

This the Responses from Disability Alliance BC 

Spring Economic Update Includes Changes to the Disability Tax Credit and other Tax Measures, but More Reform is Needed

Logo for Disability Alliance BC. The letters “dab” are stylized in blue, followed by a continuous infinity symbol. Below, “disability alliance bc” is written in lowercase blue letters.

On Tuesday, the federal government released its Spring Economic Update, and we have compiled some key proposals relevant to people with disabilities.

Disability Tax Credit

Changes to DTC Eligibility

The Disability Tax Credit, currently does much more than just reduce taxes. It is the gateway to other important financial programs, like the Canada Disability Benefit (CDB), the Registered Disability Savings Plan.

The Spring Economic Update proposes a new a streamlined application process for certain medical conditions.

The following conditions will qualify based on diagnosis alone:

  • Alzheimer’s disease
  • Amyotrophic lateral sclerosis / Lou Gehrig disease
  • Angelman syndrome
  • Autism spectrum disorder, level 3
  • Bilateral blindness (legally blind)
  • Bilateral hearing loss (severe or profound)
  • Cardiac functional class of 4/IV or an ejection fraction of 20% or less
  • Cerebral palsy (severe)
  • Chronic Obstructive Pulmonary Disease, stage III or higher
  • Colostomy (permanent)
  • Cystic fibrosis
  • Dementia
  • Down syndrome / Trisomy 21
  • Duchenne muscular dystrophy (advanced or severe)
  • Edwards syndrome / Trisomy 18
  • Hemipelvectomy
  • Hemophilia A (severe)
  • Hip disarticulation
  • Huntington disease
  • Ileostomy (permanent)
  • Intellectual disability (severe, profound or IQ of 70 or below)
  • Lower limb amputation (leg or foot)
  • Microcephaly
  • Paraplegia
  • Parkinson’s disease (advanced or severe)
  • Patau syndrome / Trisomy 13
  • Phenylketonuria
  • Prader Willi syndrome
  • Profound hearing loss in one ear and severe hearing loss in the other ear
  • Progeria
  • Quadriplegia or tetraplegia
  • Relies only on lip-reading and / or use sign language to understand conversations or communicate
  • Renal (kidney) failure requiring lifelong hemodialysis or peritoneal dialysis
  • Requires lifelong continuous supplemental oxygen (O2)
  • Schizophrenia
  • Sickle cell disease (severe) requiring transfusions
  • Sign language is primary means of communicating due to profound hearing loss or expressive aphasia
  • Spinal muscular atrophy, type 1 and 2
  • Stroke (severe) no functional recovery
  • Tay-Sachs disease (infantile/juvenile)
  • Total mutism
  • Traumatic brain injury (severe)
  • Upper limb amputations (trans carpal or higher)

This means that medical practitioners will no longer need to add descriptive text outlining an applicant’s restrictions unless the CRA asks for more medical information.  

Expanding list of Medical Practitioners:

The update also proposed to expand the list of practitioners that can support with the application:

  • Occupational therapists will be able to certify eliminating (using the toilet)
  • Physiotherapists can now certify feeding and dressing
  • Speech Language Pathologists can now certify feeding or hearing
  • Podiatrists will be able to certify walking

Streamlined Application Process for Those Under the Care of Public Guardians and Trustees

Provincial/Territorial public guardians, trustees, and curators will be able to certify the DTC for adults under their care for property matters if they already have a document issued by a healthcare professional stating that they do not have decision-making capacity. They will not need to have the DTC recertified by the medical practitioner unless the CRA asks.

Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada will be able to provide similar certification for adult dependants in their care under the Indian Act.

These measures are set to apply to DTC certifications from 2027 onwards.

Additional changes to tax measures to note:

Home Buyer’s Plan

Right now, people who want to purchase or build their first home, or a home for a specified disabled person, can withdraw $60,00 from an RRSP without having to pay tax on the withdrawal.

They will have to repay the money back to the RRSP over 15 years, but the spring update proposes a 5-year grace period before the 15-year window begins. This will be in effect for anyone who withdraws until 2028.

Labour Mobility Deduction for Tradespeople

From the 2026 tax year onwards, tradespeople working in the construction industry will be able to claim up to $10,000 (previously $4,000) in relocation expenses if they move at least 120 km closer to their work.

DABC welcomes the small changes, particularly in relation to the DTC application, that will reduce administrative barriers for those living with long term health conditions, and healthcare barriers for those who struggle to access supportive health services. However, we hope these changes open the door for continued conversation around more meaningful policy reform. Namely, we call on the government to reduce application barriers for all DTC applicants, to ensure financial supports like the Canada Disability Benefit more adequately address disability poverty, and to move away from application models that require people to medically prove their disability.

The update has shown that change is possible, but this change must be centred around lived experience. 

This is on Disability Alliance BC website go to the link here

 

Spring Economic Statement: Small Steps Forward. Big Leaps Still Needed

 

The image showcases a logo that reads Inclusion Canada, with Inclusion in purple and Canada in teal, symbolizing our commitment as an advocate. Framed by gradient brackets from purple to teal, it reflects our mission for DiversAbility on a clean white background.

Ottawa, ON – Wednesday, April 29, 2026 — Tuesday’s Spring Economic Statement signals some progress on reforms to Canada’s Disability Tax Credit (DTC). However, national disability rights organization Inclusion Canada says a program widely recognized as outdated, restrictive, and difficult to access needs more substantive reform. The Statement was also silent on making any improvements in the adequacy of the Canada Disability Benefit (CDB).

The DTC now serves as the gateway to the Canada Disability Benefit (CDB), the Registered Disability Savings Plan, the Canada Dental Benefit and other important federal programs.  Yet restrictive eligibility rules, costly medical forms and a complicated application process continue to shut too many people out.  It is so cumbersome, a new report by the Canadian Tax Observatory revealed that 84 per cent of people with disabilities in Canada do not access the tax credit.

The Spring Economic Statement announced a commitment to streamline the DTC application process. It proposes to expand the list of practitioners who can certify particular types of disability and expand the list of conditions that will not require recertification every few years.  These changes are helpful and welcome.  However, the need still exists for significant transformation in the definition of disability. That definition is used to determine eligibility for the DTC to ensure the broadest possible access.

“We understand these are difficult economic times however, persons with disabilities have always been required to expect less, accept less and be grateful for less.  This is a missed opportunity to change that narrative for Canadians with disabilities and their families,” said Krista Carr, Chief Executive Officer of Inclusion Canada. “While there were certainly some positive aspects of the Spring Economic Statement, a real commitment from government to reduce the high levels of poverty experienced by persons with disabilities was notably absent.”

About 70% of adults with an intellectual disability live in poverty. Yet the Canada Disability Benefit remains capped at up to $6.66 a day or up to $200 per month—an amount that leaves people far below any poverty-line benchmark.

Inclusion Canada has called for a phased increase to make the benefit effective:

  • 2026–27: Increase to $800 per month

  • 2027–28: Increase to $1,100 per month

  • 2028–29: Increase to $1,393 per month, reflecting the Guaranteed Income Supplement plus the added costs of disability

The organization is also calling for the benefit to be protected from clawbacks to provincial disability assistance and private disability insurance payments.

“Individuals with an intellectual disability across Canada are stretched to the breaking point,” said Moira Wilson, President of Inclusion Canada. “Families are increasingly concerned about the future of their children and their ability to thrive and be included in the community, particularly when they are no longer around to provide support.”

Inclusion Canada is calling on the federal government to act without delay by:

  • Launching a comprehensive review of the Disability Tax Credit, including reforming the definition of disability used to determine eligibility, and ensuring adults with intellectual disabilities can apply for the credit with the decision-making supports of their choosing, on an equal basis with others.

  • Increasing the Canada Disability Benefit to a level that reduces poverty

  • Protecting the benefit from clawbacks

  • Working directly with disability organizations and families on reforms

“People with disabilities cannot continue to wait while poverty deepens and barriers remain,” added Carr. “The time for action is now”.

Inclusion Canada will be looking to the fall federal budget to deliver the substantive reforms missing from today’s announcement, including a meaningful increase to the Canada Disability Benefit and a comprehensive overhaul of the DTC.

Facts:

  • About 27 per cent of people in Canada live with a disability. And they are more than twice as likely to live in poverty compared to those without disabilities.

  • The Disability Tax Credit (DTC) is a non-refundable federal tax credit that reduces the amount of income tax a person with disabilities or their supporting persons owes.  It is the gateway to access other federal disability support programs like the Canada Disability Benefit (CDB) and the Registered Disability Savings Program (RDSP).

About Inclusion Canada

Inclusion Canada is the national federation of 13 provincial/territorial member organizations and over 300 local associations working to advance the full inclusion and human rights of people with intellectual disabilities and their families. Inclusion Canada drives social change by strengthening families, defending rights, and transforming communities into places where everyone belongs.

This is on INCLUSION CANADA WEBSITE GO TO THE LINK HERE

PDF DOWNLOAD BELOW GET YOUR COPY OF FULL DETAILS OF THE SPRING ECONOMIC UPDATE 2026 

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