Summary#
This bill would have the federal government pay tuition directly to post‑secondary schools for students with disabilities who qualify for the federal Disability Tax Credit. The payment would count as a grant to the student and would not be taxable income. The Minister may set conditions by regulation before payments are made. The bill covers tuition fees only, not other costs (books, housing, transportation).
- Pays tuition to the school for students eligible for the Disability Tax Credit and enrolled in a designated school (CSFAA s.9.21(1)).
- Treats the payment as a grant to the student (CSFAA s.9.21(2)).
- Makes the grant non‑taxable by excluding it from income (ITA s.81(1)(h.2)).
- Allows regulations to set conditions for payment (CSFAA s.15(1)(p.1)).
- Focuses on tuition; other education costs are not covered (CSFAA s.9.21(1)).
- Preamble notes about 1 in 5 Canadians aged 15+ have a disability (Preamble).
What it means for you#
- Students with disabilities: If you qualify for the federal Disability Tax Credit (Income Tax Act s.118.3) and enroll in a designated post‑secondary institution, the Minister must pay your tuition fees directly to the school, subject to conditions set in regulations (CSFAA s.9.21(1), s.15(1)(p.1)). The payment is a grant and is not taxable (CSFAA s.9.21(2); ITA s.81(1)(h.2)). The bill does not state a start date; timing would depend on when it comes into force and when regulations are made.
- Families and caregivers: Up‑front tuition payments from the federal government would lower out‑of‑pocket tuition costs for eligible students. Non‑tuition expenses (books, equipment, living costs) are not covered by this bill (CSFAA s.9.21(1)). The tuition grant would not increase the student’s taxable income (ITA s.81(1)(h.2)).
- Post‑secondary institutions: You would receive tuition directly from the federal government for eligible students. You may need to meet any conditions set in regulations and coordinate enrollment and billing details with the department (CSFAA s.9.21(1); s.15(1)(p.1)).
- Tax filers: Students receiving this tuition grant would not report it as taxable income (ITA s.81(1)(h.2)). Eligibility for the tuition payment depends on qualifying for the Disability Tax Credit (ITA s.118.3).
- Program administrators: The department must develop and enforce regulations setting conditions for payment, and administer direct payments to institutions (CSFAA s.15(1)(p.1), s.9.21(1)). The bill gives no dates or implementation schedule.
Expenses#
Estimated net cost: Data unavailable.
- No fiscal note published: Data unavailable.
- New statutory spending: The Minister “shall pay” tuition for eligible students; no cap is set in the bill (CSFAA s.9.21(1)). Amounts would vary with the number of eligible students and tuition levels. Data unavailable.
- Tax expenditure: The grant is excluded from income, reducing taxable income for recipients (ITA s.81(1)(h.2)). Revenue impact: Data unavailable.
- Administrative costs to set up and run direct payments and regulations: Data unavailable.
- Explicit appropriations in the bill: None.
Proponents' View#
- Removes a key barrier by paying tuition directly, which can improve access to post‑secondary education for students with disabilities (CSFAA s.9.21(1); Preamble).
- Targets support to people who qualify for the Disability Tax Credit, a defined federal standard for severe and prolonged impairment (ITA s.118.3).
- Prevents unexpected tax bills by excluding the tuition grant from taxable income (ITA s.81(1)(h.2)).
- Reduces the need for students to front tuition money or take larger loans for tuition, since the Minister pays the institution (CSFAA s.9.21(1)).
- Aligns with Parliament’s stated goal of expanding access for Canadians with disabilities (Preamble).
Opponents' View#
- Open‑ended cost risk: the bill sets no budget cap, defines a mandatory “shall pay,” and provides no fiscal estimate (CSFAA s.9.21(1)). Total cost is unknown.
- Narrow eligibility: only students who qualify for the Disability Tax Credit are covered; others with disabilities who do not meet DTC criteria receive no tuition help under this bill (ITA s.118.3).
- Limited coverage: the bill pays tuition only; students still face non‑tuition costs, which can be significant and may continue to block access (CSFAA s.9.21(1)).
- Implementation uncertainty: key details are left to regulations, including conditions for payment, which could delay rollout or create uneven access (CSFAA s.15(1)(p.1)).
- Interaction with existing aid unclear: the bill does not state how this grant will interact with current Canada Student Grants and Loans or provincial programs. Potential overlaps or offsets are not addressed.