Bill 12 and ADAP: The Biggest Rewrite of Disability Supports in Alberta in 20 Years

When the Alberta government released Bill 12: The Financial Statutes Amendment Act, 2025, most people expected a routine finance bill. Instead, it quietly introduced one of the largest restructurings of disability income supports in decades.

If you receive Assured Income for the Severely Handicapped (AISH), support someone on AISH, or are involved in disability advocacy, Bill 12 directly affects you.

For anyone wanting to read the legislation directly:
You can read Bill 12 here

Below is a full, plain-language breakdown of what Bill 12 actually does, and what it means for disabled Albertans.

1. Alberta Now Has Two Disability Categories

Bill 12 introduces two separate legal categories:

AISH
A severe disability that permanently prevents employment.

Alberta Disability Assistance Program (ADAP)
A severe disability that substantially impedes employment.

Neither definition is explained. All details will come later in regulation. That creates a wide gap for interpretation and gives government room to redraw disability boundaries at any time.

This opens the door to moving people out of AISH and into a lower-security program.

2. People Can Be Moved from AISH to ADAP With No Right to Appeal

Section 12.8 states that when someone is transitioned from AISH to ADAP, they cannot appeal the decision.

In a system where appeals are often the only protection against rushed or inaccurate decisions, removing this right strips away a crucial safeguard.

3. ADAP Creates a Two-Tier Disability System

ADAP does not guarantee the full set of benefits.

The legislation says a person may receive a living allowance, a modified living allowance, health benefits, a child benefit, a personal benefit, or employment supports. Every item is optional. The government can provide all, some, or none depending on regulations.

People only receive the full set if they meet the “substantially impedes employment” test. If they do not, they may receive no monthly income support at all, and depending on the regulations, they could even be left with no benefits.

This is how a two-tier system is created.

4. Section 12.6: The Mechanism Used to Move People Off AISH

Section 12.6 allows government to reassess and reclassify existing AISH recipients into ADAP.

Combined with the “no appeal” rule, this creates a one-way shift into a less predictable program.

5. Section 10(2)(e): The Minister Can Limit Appeals

Bill 12 gives the Minister the ability to decide which decisions the Appeal Panel is allowed to hear.

If the Minister removes a category of decisions from appeal, there is no further review. This power reaches far beyond ADAP and affects the entire appeals framework.

6. Cost-of-Living Increases Removed From Legislation

Bill 12 repeals Schedule 1, which previously outlined how benefits should be adjusted using the Alberta Escalator.

This means:

• rates can change without public debate
• indexation is no longer guaranteed
• freezes or reductions can happen quietly
• future changes happen only through regulation

This reduces income stability for disabled Albertans.

7. Enduring Health Benefits (Details Missing)

Bill 12 introduces “enduring health benefits” for people who lose ADAP because their household income rose.

However, eligibility rules, income thresholds, and timelines are not in the Act. Everything will be determined later in regulation. Until then, these benefits are not secure.

8. Clarifying the Director’s Powers

Bill 12 grants broad discretionary powers to:

• determine eligibility
• reassess cases
• suspend benefits
• determine overpayments
• decide which benefits a client receives within regulation

The scope of discretion increases and the right to appeal unfair and incorrect decisions is limited.

9. Subtle Wording Changes That Expand Authority

Bill 12 changes certain terms in ways that appear small but have big impacts, including:

• replacing “approve” with “determine”
• revising definitions around trusteeship
• expanding the ability to assign financial administrators with or without consent

These technical changes widen government authority.

10. Increased Administrative Complexity

Bill 12 creates:

• new assessments
• new categories
• new eligibility thresholds
• two parallel disability programs
• fewer appeal protections
• more case-level discretion

This makes the system harder to navigate for people with cognitive disabilities, mental health disabilities, language barriers, or limited support networks.

11. Guardianship and Trusteeship Adjustments

Changes to the Adult Guardianship and Trusteeship Act include:

• a new definition of “specific decision-maker”
• revised financial decision-making rules

Families relying on trusteeship may need legal review to understand impacts.

12. Fiscal Changes That Indirectly Affect Disability Supports

The bill also introduces broader fiscal changes, including:

• a levy on data centres
• a Crown guarantee for the Alberta Indigenous Opportunities Corporation
• retroactive immunity for AIMCo

While not disability-specific, these changes affect Alberta’s financial position and future budget flexibility.

What This Means in Real Life for Disabled Albertans

These legislative shifts translate into real-world changes.

People may face new uncertainty about their benefits.
Even the possibility of reassessment creates stress. Predictability is essential for daily living. Bill 12 introduces more unknowns.

Benefits may erode over time

Annual cost-of-living increases will no longer be guaranteed in legislation.

It is unknown what conditions individuals must meet to remain on ADAP and whether some could lose income they have relied on for years.
If someone is moved to ADAP and no longer meets its criteria, they may receive no living allowance at all. This affects rent, groceries, medications, and basic needs.

Appeal protections will be weaker.
When mistakes happen, fewer decisions will be reviewable.

Families will carry more of the load.
Uncertainty pushes more responsibility back onto families who are already stretched thin.

People without advocates will be the most vulnerable.
The more complex the system becomes, the harder it is for people without support networks to navigate.

A deeper structural issue remains.
Without accessibility legislation or a disability strategy rooted in rights, ADAP gives government wide discretion to decide who is “disabled enough” to receive meaningful support. This power imbalance creates fear, and fear keeps people quiet.

Accurate information helps people prepare, understand, and organize.

Call to Action: Make Your Voice Heard

1. Sign the Open Letter Calling on the Government to Cancel ADAP
Many of us have already signed:
Cancel ADAP open letter

2. Get Involved in Grassroots Movements Like PADA
The People’s Alliance for Disabled Albertans (PADA) is built by and for disabled Albertans. The community focuses on:

• education
• empowerment
• community supports
• collective advocacy and peer networks

When policy shifts affect people’s lives, community becomes essential.

A Final Note on Power and Uncertainty

Bill 12 leaves disabled Albertans in a place of deliberate uncertainty. When a ministry has the ability to quietly redefine disability, change benefit levels, or reclassify people without an appeal process, it creates a system where stability is no longer guaranteed. That kind of power, unchecked, centralized, and removed from public oversight, inevitably silences people. If your income, housing, or medication rely on staying in the “right” category, advocacy becomes a risk.

And the timing matters. Alberta still has no accessibility legislation, no disability rights framework, and no actual disability employment strategy. “Work First Alberta” is not a disability strategy. It does not fix the barriers that keep disabled people from working, and it does not address the workplaces, systems, and policies that need to change.

Without structural protections, moving people from AISH to ADAP or subjecting them to new definitions places people in a system where their future can be rewritten through regulation. That is not modernization. It is precariousness. And it is why community-driven clarity, solidarity, and advocacy are essential right now.

A Gentle Note

If you found this breakdown helpful, feel free to pass it along to others who may benefit from plain-language information. Sometimes sharing clarity is one of the most meaningful things we can do for one another.