It has been just over a year since the launch of the Canada Disability Benefit (CDB) in June 2025. The establishment of the CDB was a significant step in how Canada supports disabled people. Plan Institute has been closely monitoring the federal benefit’s impact on our community, while advocating for a more accessible CDB.
The federal government has recently finalized a new package of regulatory updates to streamline the CDB, reduce barriers, and ensure fairer calculations.
These updates will officially take legal effect on September 1, 2026
As we reflect on year one and look ahead to year two, here is what these changes mean for you, your family, or the people you support.
One-time supplemental amount of $150 to help with medical fees
To help with the out-of-pocket fees doctors often charge to fill-out Form T221 for the Disability Tax Credit (DTC), the federal government is issuing a one-time, tax-free, lump-sum payment of $150.
People who have the DTC but have not accessed the CDB are not eligible for this support. The supplement can be automatically accessed by all recipients of the CDB, regardless of the amount you receive or whether your eligibility has lapsed. If you have received payments from the CDB, you should be eligible for the supplemental amount.
Learn more about applying for the DTC here.
Apply 6 months early at age 17
Youth no longer have to wait until their 18th birthday to navigate the application system. You can now submit your application up to six months before turning 18, ensuring your financial support starts seamlessly the month you reach adulthood.
Learn more about eligibility for the CDB here.
Spousal tax waiver
If your spouse or common-law partner cannot file their taxes due to exceptional circumstances and you are granted a waiver, Service Canada can calculate your CDB payment amount as a single person. This can keep your payments from being reduced or delayed.
Zero interest until a decision is made on your appeal
If Service Canada tells you that the payments you received are above the amount you’re eligible for, they usually ask for the money back. Recipients can file a request for reconsideration, and this new regulation will prevent interest from accruing on the amount owed until a decision is made.
Learn more about payments and reconsideration requests.
Protection from federal clawbacks
The federal government has updated the definition of “adjusted income” to align with the Income Tax Act. This change exempts CDB payments from being treated as income, protecting CDB recipients from clawbacks on other federal benefits like the Canada Child Benefit. While this is a welcome change, this does not protect CDB recipients from provincial clawbacks. Alberta is uniquely the only province clawing back the CDB.
