Disability Without Poverty Posted Update

Federal Updates

Spring Economic Update 2026 and Budget 2025: What Was Announced

Budget 2025: Two CDB-Related Measures Now Law

The Budget Implementation Bill (C-15) received Royal Assent on March 26, 2026. With that, two measures tied to the Canada Disability Benefit (CDB) are formally in place: CDB payments are now exempt from the income calculation under the Income Tax Act, and a one-time $150 supplemental payment to offset the cost of applying for or renewing the Disability Tax Credit (DTC) has been authorized.

The income exemption is fully in force. The CDB website states that "Canada Disability Benefit (CDB) payments are non taxable. These payments do not need to be reported as income on your income tax return, and no tax slips are issued for CDB payments." Because the CDB is excluded from the Income Tax Act's computation of income, it should not reduce income-tested federal benefits such as the Canada Child Benefit, the Canada Workers Benefit, the GST Credit, or supports tied to the Canada Disability Savings Program.

The $150 supplemental payment is still working its way through regulatory and funding approvals, which are progressing on separate tracks. Payments are expected to be issued in batches before shifting to a monthly cadence tied to DTC certification or re-certification. Official delivery dates have not yet been published, and we'll share them once the government confirms.

It's worth noting what these two measures do and don't do. The income exemption is a protective fix - it ensures the CDB doesn't reduce other federal supports - rather than an expansion of the benefit itself. The $150 payment offsets a single administrative cost. Neither change touches the underlying questions about CDB benefit levels, provincial and territorial clawbacks, or the broader adequacy of income supports for people with disabilities living in poverty.

You can read more about these measures in Budget 2025 here: https://budget.canada.ca/2025/report-rapport/chap3-en.html#a20

Spring Economic Update (SEU) 2026: Adjustments to the Disability Tax Credit

DTC eligibility is the gateway to several other supports, including the CDB, the Child Disability Benefit, and the Registered Disability Savings Plan. The application process has long been a source of friction - for applicants navigating the paperwork, and for the medical practitioners required to certify impairment and its impacts on daily activities.

SEU 2026 proposes three changes:

1. A streamlined path for certain long-lasting medical conditions.  Applicants with a formal diagnosis of conditions listed in the Tax Measures: Supplementary Information annex would face a simpler process. The CRA identified these conditions through its own processing data as routinely satisfying the disability impact criteria. The underlying eligibility criteria are unchanged, and the CRA retains authority to request additional information. Applies to the 2026 and subsequent taxation years.

2. A wider list of certifying practitioners. Podiatrists would be added for a specific type of impairment, and physiotherapists, speech-language pathologists, and occupational therapists would be able to certify a broader range of impairments within their scope of practice. Applies to DTC certificates issued after 2026, for the 2027 and subsequent taxation years.

3. Recognition of provincial and territorial public guardians and trustees. They would be able to certify the DTC for adults in their care for property matters who hold a valid certificate of incapacity based on a medical practitioner's assessment of mental impairment. Applies to the 2026 and subsequent taxation years.

   
   

   The federal government estimates these adjustments will deliver $345 million over six years (and $86 million annually thereafter) in tax relief and increased payments through DTC-linked benefits, including the CDB and the Child Disability Benefit. An additional $42.5 million over five years, beginning 2026–27, is earmarked for the CRA to administer the changes.

These are procedural improvements. They aim to reduce friction at the front door of the DTC, but they do not revisit the eligibility criteria themselves - a long-standing concern for many in the disability community. People whose diagnoses fall outside the listed conditions, or whose impairments don't fit neatly into the existing categories, will continue to navigate the same certification process they do today.

You can read more about these measures in SEU 2026 here: https://budget.canada.ca/update-miseajour/2026/report-rapport/chap2-en.html#a34 

In the News

What's New With The Provinces?

Curious about what's making headlines when it comes to disability advocacy in your province? Check it out here.