Prince Edward Island’s 2025-26 Provincial Budget
On April 10, 2025, Finance Minister Jill Burridge presented the Government of Prince Edward Island’s 2025-26 Budget Address amid U.S. tariffs and a federal election. The Budget focuses on investing in education, healthcare, and affordability while preparing for an economic downturn caused by the U.S. Administration.
The Government is projecting a deficit of $184 million for 2025-26, which includes a $32 million tariff and trade contingency fund to prepare against the volatility of the U.S. Administration. Revenues are expected to be $3.34 billion, and spending is expected to be $3.5 billion. This represents the province’s largest budget deficit in its history, bypassing its previous record deficit of $172.7 million in response to the COVID-19 pandemic in 2020-21.
Stay tuned for further updates as the Prince Edward Island Government implements these measures. To gain insights into how the 2025-26 Budget may affect your organization or business, please reach out to our team of experts at Iris Communications.
Key Budget Highlights
Securing the Economy
- Lowering Business Tax $9.3 Million
To enable Island companies to be more competitive and to reinvest in their businesses by raising the small business threshold to $600,000 and lowering the corporate income tax rate by 1 per cent.
- Supports for Oyster Industry $3.6 Million
To begin a Genome Surveillance Project and establish a $3 million contingency fund to help support the oyster industry.
- Expanding Air Access $353,000
Working with Maritime counterparts and the Atlantic Canada Opportunities Agency (ACOA) to support business and tourist travel by restoring critical hub airport connections, including the Charlottetown to Halifax connection.
- Tariff and Trade Response Funding $42 Million
Establishing a $32 million Tariff and Trade Contingency Fund to provide direct support to businesses and workers affected by tariffs, reinforce trade relationships, and help Island businesses diversify into new markets. In addition, establish a $10 million Tariff Working Capital Program to provide financial relief through flexible loans – protecting jobs and economic stability.
Securing the Workforce
- Reducing Personal Income Tax $5.1 Million
Immediately increase the basic personal amount to $14,650 for 2025. In January 2026, increase all five tax brackets by 1.8 per cent and the basic personal amount to $15,000, accelerating tax changes a full year earlier than originally planned.
- Reskilling and Upskilling the Workforce $1.5 Million
To give workers new opportunities to advance or change their careers and help new workers build the skills and confidence they need to succeed.
- An Increase in Minimum Wage To $17/hour
To help workers keep up with the cost of living and ensure that growth in the economy reaches those helping to build it.
- Increasing the George Coles Bursary $663,000
Increase the George Coles Bursary to $3,500 to help Island students with the cost of education and encourage them to continue their studies at PEI’s world-class educational institutions.
- Increasing the Marion L. Reid Bursary $155,000
Increase the bursary to $3,500 and expand program eligibility for other in-demand occupations.
- Helping Future Farmers $100,000
To help support the next generation of farmers by providing core funding for the PEI Young Farmers Association and expanding agricultural student bursaries.
Securing the Healthcare System
- Launching a Practice Readiness Assessment Program
To launch a program to certify up to 40 internationally trained physicians each year.
- Expanding Healthcare Training Support Programs $1.1 Million
To create a 29-week Accelerated Medical Administrative Support Program and continue to provide Island students studying to become paramedics, resident care workers, or licensed practical nurses free tuition with a commitment to work after graduation.
- Expanding the Student Nursing Employment Program $500,000
To hire students to work year-round alongside experienced professionals during weekends, holidays, and academic breaks. These students will graduate with strong clinical skills and step directly into full-time roles through the Graduate Incentive Program.
- Hiring More Internationally Trained Registered Nurses $650,000
To expand the Transition to Registered Nursing in Canada Program and continue to offer the Registered Nursing Bridging Program to hire more internationally trained RNs.
- Upskilling Opportunities for LPNs to become RNs $215,000
To launch a pathway enabling LPNs to train and become RNs while staying in the workforce, helping meet the critical need for more RNs. This equals a total investment of $818,000.
- Funding the UPEI Faculty of Medicine $16.8 Million
To support the opening of the UPEI Faculty of Medicine and welcome the first cohort of medical students.
- Expanding Access to Primary Care
Opening new and expanding Patient Medical Homes, which will affiliate 10,000 Islanders by the end of this year. Also, expanding teams and hours in Primary Care Access Clinics to support unaffiliated Islanders who need to be seen in-person.
- Expanding Medical Transportation Assistance $100,000
A new program to help Islanders travel to receive life-sustaining care, ensuring Islanders who live in rural areas can access the services they depend on.
- Long-Term Care Investments $21 Million
Increasing per diem rates for private long-term care homes and funding to ready 103 new long- term care beds, with plans to add an additional 175 new long-term beds.
- Expanded Virtual Care $4.8 Million
To enable all Islanders to access care through phone, video, or text.
- Increasing Support for Seniors to Stay at Home $4 Million
To make permanent the Self-Managed Care program and expand the At Home Caregiver Benefit program, for a total investment of over $10 million in programs designed to help seniors stay in their homes longer.
Securing Communities and Infrastructure
- Keeping Transit Affordable $160,000
To maintain free transit for students and keep subsidized daily or monthly passes available to all Islanders.
- Creating a Joint Enforcement Team to Keep Communities Safe $810,000
To launch a new Joint Enforcement Team to push back against emerging mid-level drug trafficking and organized criminal networks.
- Increase the Home Heating Assistance Program $3 Million
To assist Islanders in need with their home heating costs, including oil, electricity, and wood/pellets, bringing the total investment in this program to $7.7 million.
- Increasing Funding to Municipalities $5.5 Million
Funding provided over two years through a new interim agreement, giving municipalities the support they need now to keep serving Islanders.
- Creating a Municipal Infrastructure Bank Program
To offer low-interest loans to help communities build or refurbish infrastructure such as water and sewer systems, fire halls, and community centres.
- Supporting the Community Sector $3.2 Million
Provide stable, core funding for non-profit community groups, including increasing funding for food banks.
Securing the Future
- Investment in Early Years $10.5 Million
To create or transition approximately 190 affordable spaces by converting existing spaces, creating new spaces, and designating new family home centers. This also includes the continuation of the early years centre expansion loan and grant program and increasing wages for early years centres’ staff.
- Supporting Before and After School Care $470,000
To help centres stabilize programming and keep spaces open, while planning for expanded offerings across the province.
- Expanding School Food Lunch Program $2.5 Million
This additional funding, with help from federal partners, results in a total of over $7.5 million in this fiscal year to continue providing healthy and affordable school lunch options.
- Investing in the Education System $9.2 Million
New funding for staffing, giving teachers more prep time, increasing the number of front-line school staff, and continuing the Positive Behaviour Intervention Supports pilot with expansion to the CSLF.
- Supporting Children in Care $128,000
Provide a $200 Back to School and $200 Change in Season benefit for children in group homes, foster care, and those supported through the Grandparent and Alternate Care Program so they have what they need to play and learn.
More details on Budget 2025-26 investments and economic projections are available here: https://www.princeedwardisland.ca/en/information/finance/provincial-budget-operating-budget