Summary of Recommendations
March of Dimes Canada's 2026-27 Pre-Budget Submission to the federal Department of Finance, proposes the following recommendations for federal consideration and inclusion in the 2026-27 federal budget:
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Recommendation 1: That the federal government increase the Canada Disability Benefit (CDB) to meet the actual cost of living, classify the CDB as non-taxable income, remove barriers to access through Disability Tax Credit (DTC) reform, and amend Bill C-4 to preserve tax credits for people with disabilities.
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Recommendation 2: That the federal government invest in employment equity initiatives for people with disabilities and strengthen enforcement of the Accessible Canada Act.
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Recommendation 3: That the federal government invest in accessible, adaptable, and affordable housing through updated building codes, modular housing policy, and housing affordability measures for people with disabilities.
Introduction
March of Dimes Canada (MODC) is pleased to submit our federal Pre-Budget Submission for fiscal year 2026-27. As a national service provider, advocate, and policy influencer dedicated to the rights and inclusion of people with disabilities, we work closely with our community to identify priorities that can transform public systems and ensure equity.
People with disabilities in Canada continue to face unacceptable rates of poverty, unemployment, social exclusion, and housing insecurity. Federal leadership is urgently needed to address these systemic challenges with concrete investments in accessibility, income security, and inclusive public systems.
Our recommendations are rooted in our ongoing programs and recent stakeholder consultations and align with federal commitments outlined in the Disability Inclusion Action Plan and Canada’s obligations under the UN Convention on the Rights of Persons with Disabilities (UNCRPD).
Recommendation 1:
Increase and Protect Financial Supports for People with Disabilities
People with disabilities are more likely than those without disabilities to live in poverty, with those with severe disabilities twice as likely to live in poverty compared to those without disabilities.i The 2022 Statistics Canada Canadian Survey on Disability clarified the economic challenges and sacrifices people living with disabilities must contend with in their day-to-day lives. The costs of living with disability, which vary widely based on a person’s unique needs, may range from hundreds to thousands of dollars annually. As a result, some forgo needed aids and devices, medications and other supports. In fact, as many as 56 per cent
– or over 3.2 million
– of people with disabilities in Canada report having an unmet need in these areas due to cost.ii This is an increase from 26 per cent in 2017.
With the goal of ending disability poverty in Canada once and for all, MODC encourages federal investment in financial supports that enable people with disabilities to not just survive but thrive.
Canada Disability Benefit (CDB): Current Gaps
The CDB, as currently designed and at a maximum of $200 per month, falls well short of policy goals to substantially reduce disability poverty in Canada. The Office of Disability Issues, in a response to a HUMA inquiryiii, reported that at currently funding levels, the CDB will lift only 25,000 people with disabilities in Canada out of poverty
– this is just two per cent of the 1.2 million people with disabilities living in poverty in Canada. This is not a cause for celebration, but an indictment of our inadequate commitment. We urge the federal government to substantially increase the CDB quantum to ensure no person with a disability in Canada lives below the poverty line.
During the regulations development process last year, the government chose to base CDB eligibility on household income instead of individual income. This is despite broad calls from stakeholders and people with disabilities to choose the latter, and Canada’s commitments under the UN Convention on the Rights of Persons with Disabilities to ensure the dignity and autonomy of any person with a disability. Choosing a spousal income-base elevates dependency and removes choices as the CDB will begin to phase out if a spouse has a relatively higher (yet still low) income of over $32,500. With already low CPP-D and provincial/territorial disability income support maximums that keep people with disabilities living in poverty, basing the CDB on household income is unacceptable, perpetuates a charity model of disability, and is contrary to Canada’s international commitments and obligations.
Legislative Action Needed
All provinces and territories – except Alberta – have committed to no claw backs on the CDB. To protect this, the CDB must be legislated as non-taxable income. MODC welcomed the 2024 Fall Economic Statement’s commitment to this change, but it has yet to be legislated due to the spring election and proroguing of Parliament. We urge MPs to work with the Ministers of Finance and Jobs and Families to pass this amendment in fall 2025.
Removing Barriers to Access
Access to federal disability benefits remains a major challenge. Over the course of MODC’s decades of work with people with disabilities, our collaborative efforts as a member of the National Disability Network, and in our
Benefit Without Barriers report, we know that people with disabilities continue to face substantial barriers in accessing the federal disability benefits for which they are eligible. Only 40 per cent of eligible individuals access the Disability Tax Credit (DTC), due to barriers such as:
- Medical certification fees of up to $400
- Lack of clarity on eligibility for both health professional and applicants
If the DTC remains the gateway to the CDB, the government must urgently implement the program to compensate health professionals for certifying DTC applications
– funded in the 2024-25 Budget but delayed by the election.
DTC Reform
All parties committed to DTC reform in the 2025 election. This must be prioritized to ensure people with disabilities can access the benefits they are entitled to. While federal investments in navigation services and MODC’s “Enhancing Benefit Takeup for People with Disabilities through Multi-Sector Stakeholder Engagement” project are welcome, their impact depends on meaningful DTC reform.
Amend Bill C-4
Bill C-4, as written, will unintentionally reduce access to the DTC and Medical Expense Tax Credit (METC) for low- and modest-income people with disabilities. As outlined in the
National Disability Network’s June 6, 2025 letter to Minister Champagne, we urge the following amendment:
“For the purposes of the formulas in sections 118.2(1) and 118.3, the value of A shall be 15 per cent for the 2025 and subsequent taxation years, notwithstanding the appropriate percentage for the year.”
This technical fix will ensure that broad-based tax relief does not come at the expense of essential supports for people with disabilities.
Recommendation 2:
Invest in Disability-Inclusive Employment
People with disabilities in Canada continue to experience unacceptably high rates of unemployment and underemployment, despite being more eager to work than their non-disabled peers.iv According to Statistics Canada, only 46.4 per cent of working-age adults with disabilities are employed, compared to 66.2 per cent of those without disabilities.v This gap persists even though many people with disabilities report a strong willingness and motivation to work.
Even when employed, people with disabilities face systemic inequities in the labour market. In 2024, they earned an average of $2.22 less per hour than their non-disabled counterparts.vi This wage gap reflects both systemic discrimination and a lack of accessible, inclusive workplace practices that support long-term employment.
Employment is not only about income. It is about dignity, autonomy, and the right to contribute meaningfully. We urge the federal government to take bold, targeted action, by:
- Expanding inclusive employment programs, including Canada Summer Jobs and the Canadian Apprenticeship Strategy, with dedicated streams and wraparound supports for youth and adults with disabilities.
- Leading by example by ensuring people with disabilities are equitably represented across the public service, including in positions of decision-making, leadership, and governance. Representation matters.
- Strengthening the enforcement of the Accessible Canada Act, particularly in the employment sector. This includes holding federally regulated employers and service providers accountable for meeting their accessibility obligations, with transparent reporting mechanisms and consequences for non-compliance.
Economic inclusion is a matter of human rights. Investing in disability-inclusive employment is not only a moral imperative but an economic one. The federal government must act decisively to ensure that people with disabilities are no longer left behind in Canada’s labour market.
Recommendation 3:
Expand Accessible and Affordable Housing
In 2019, the Government of Canada enshrined housing as a human right in the National Housing Strategy Act (2019). As a signatory to the UN Convention on the Rights of Persons with Disabilities, Canada is obligated to uphold the equal right of persons with disabilities to live independently and within the community, with the freedom to choose their place of residence on an equal basis with others. Unfortunately, due to the lack of affordable, accessible housing in Canada, many people with disabilities are unable to access housing that meets their needs and enables them to remain independent in their own homes and communities.
According to Statistics Canada’s most recent Canadian Survey on Disability (2022), 27 per cent of Canadians aged 15 and older identified with having at least one disability – an increase of 4.7 percent from 2017. This trend is likely to continue as Canada’s population ages. In 2017 at least 13 percent of those with physical disabilities were unable to obtain the accessibility features and aids that they needed in their homes.vii
We welcome the progress the federal government has been made by creating the National Housing Design Catalogue using inclusive design principles, and by developing Accessible Standards Canada guidance for accessible ready housing for federally regulated entities.
We ask that the federal government:
- Work with provinces, territories, and municipalities to ensure new housing (including the modular homes strategy the government is considering) is designed to be accessible and easily adapted.
- Fund updates to the National Building Code to reflect inclusive design principles and that you standardize accessibility requirements across provincial and territorial building codes.
- Establish targeted rent supports and home ownership incentives for low- and modest-income people with disabilities.
i Statistics Canada. Accessibility in Canada: Results from the 2022 Canadian Survey on Disability.
ii Morris, S., Fawcett, G. et al. “A demographic, employment and income profile of Canadians with disabilities aged 15 years and over, 2017”. Canadian Survey on Disability Reports, released November 28, 2018.
v Ibid.
vi Ibid.
