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Post-Secondary Education Financial Assistance for Persons with Disabilities Act

An Act to amend the Canada Student Financial Assistance Act and the Income Tax Act

Summary

  • Pays tuition directly to designated post-secondary institutions on behalf of Canadians who qualify for the Disability Tax Credit (ITA s.118.3).
  • Classifies the paid tuition as a non-repayable grant to the student and makes it non-taxable income (ITA s.81(1)(h.2)).
  • Authorizes regulations to set conditions for eligibility and payment under the new provision.
  • Aims to reduce financial barriers to post-secondary education for persons with disabilities, improving access and potential workforce participation.

Builder Assessment

Vote Yes

Overall, the bill modestly advances human capital, productivity, and inclusion by removing tuition barriers for Canadians with disabilities, with no clear conflicts with the tenets. While not transformational economy-wide, it aligns with growth and competitiveness goals at relatively low administrative complexity.

  • Strengths: human capital gains; labour force participation; streamlined via DTC; non-taxable grants avoid clawbacks.
  • Risks/unknowns: program cost, potential overlap with existing grants/loans, and unclear conditions in regulations.
  • To strengthen alignment: set outcome targets (completion, employment); coordinate to replace duplicative programs; include performance-based funding; enable stackable micro-credential coverage; publish transparent cost-benefit analysis.

Question Period Cards

No question period cards yet.

Principles Analysis

Canada should aim to be the world's most prosperous country.

Invests in human capital for a large underutilized talent pool, likely increasing lifetime earnings and labour force participation among people with disabilities.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

Removes a major financial barrier to education by using an existing eligibility test (Disability Tax Credit) and direct tuition payment, reducing red tape for beneficiaries.

Drive national productivity and global competitiveness.

Broadens access to skills training and credentials, which can raise productivity and expand the skilled talent pipeline.

Grow exports of Canadian products and resources.

No direct link to export growth; any effect would be indirect via a larger, more skilled workforce.

Encourage investment, innovation, and resource development.

Education support can boost innovation capacity and entrepreneurship among persons with disabilities, expanding the innovation talent base.

Deliver better public services at lower cost (government efficiency).

Creates a new spending line but leverages existing tax-credit eligibility to administer; efficiency gains vs. loans/grants are plausible but unproven.

Reform taxes to incentivize work, risk-taking, and innovation.

Makes the grant non-taxable but does not change marginal tax rates or work incentives in a material way.

Focus on large-scale prosperity, not incrementalism.

Targeted and impactful for a specific group; national macro impact is beneficial but limited in scale.

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PartyNDP
StatusOutside the Order of Precedence
Last updatedJun 19, 2025
TopicsSocial Issues, Education
Parliament45