Bill 39, the Financial Statutes Amendment Act, was introduced in March and would, among other things, require ministerial approval for all grants, funding commitments or gifts over $250,000, and reduce the government’s own funding commitment to Legal Aid Alberta, relying instead on doubling the Alberta Law Foundation (ALF)’s statutory contribution to legal aid from 25 per cent to 50 per cent of its annual revenue.
But legal advocates are saying the bill undermines the independence of Alberta’s justice system and destabilizes support for vulnerable Albertans.
Foundation chair Paul Chiswell said the government’s changes are not a budgeting adjustment, but a structural change to how and whether community legal groups get funding from the foundation, whose revenue comes from interest on lawyers’ trust accounts, not government revenue.
“This bill inserts an additional level of political involvement and veto — with the associated uncertainty and red tape — into community granting decisions that have for over 50 years been made by an independent and non-partisan board of Albertans on the basis of professional standards and demonstrated community need,” he said.
The Alberta Law Foundation was established in 1973, and allocates revenue, primarily from interest on lawyers’ pooled trust accounts, to Legal Aid Alberta and a wide range of nonprofit organizations that provide legal services and programs across the province.
Kathy Parsons, executive director of the Community Legal Clinic – Central Alberta, said the bill puts community legal services at risk at the exact moment when more Albertans need them.
“When economic conditions worsen, we see increased demand for support in areas like family breakdown, domestic violence and housing instability,” said Parsons, who was also speaking on behalf of the Edmonton Community Legal Centre. “These are the clients we serve every day, and this legislation makes it harder for us to meet that rising need.”
ALF executive director Byron Chan said the work the foundation’s board does to assess and evaluate the merits of each grant application is now being “completely undermined by a government who isn’t well-versed in approving these applications.” He noted two government-appointed members of the law foundation board have resigned in protest of the legislation.
“I think the biggest risk is that it subjects these grant decisions now to the risk of being influenced by a political ideology,” he said. “We have existed as an independent, non-partisan organization since our inception, and no other law foundation is subject to this level of government intrusion or interference in its decision-making.”
The law foundation pointed to a recent tranche of 15 grant applications developed by ALF and several community agencies that were sent to the minister of justice for approval — only one was approved in its entirety, with nine approved with reduced amounts and five denied entirely. In all, only 58 per cent of the total amount request was distributed.
“The risks that I’m speaking to are materializing in real time and have real-world consequences for the 14 grantees that had their grants reduced or denied and the community of people that they serve,” said Chan.
The ALF has launched a campaign asking Albertans to get in contact with their provincial representatives about Bill 39. It noted one casualty of the province’s move is that the foundation’s pre-approved, $100-million commitment for the construction and endowment of a new Indigenous law institute based out of the University of Alberta will no longer proceed.
“Bill 39 threatens the stability of Indigenous-led legal services across Alberta,” said Drew Lafond, president of the Indigenous Bar Association. “By diverting community-based funding and introducing political oversight, the legislation puts culturally grounded, community-driven programs at risk. These services are essential for addressing systemic barriers and advancing justice for Indigenous peoples. This bill poses a significant threat to this work and a setback to reconciliation.”
On the issue of legal aid, Chan said Bill 39 does nothing to enhance it or increase its stability going forward.
“The government made very clear when they released the 2025 budget, they were reducing their funding commitment to legal aid by $22 million and offsetting that shortfall by taking an increased amount from the foundation,” he said. “Essentially what you have is a net reduction of resources to the justice sector and no accountability or transparency over where that $22 million is now going. It’s essentially replacing the government’s responsibilities and commitments with increased reliance on the foundation and its assets.”
Chan said the government is meant to provide the majority of stable funding for legal aid, with the foundation funding other access to justice initiatives that are meant to be for people who do not qualify for legal aid.
“But these individuals are otherwise experiencing some sort of vulnerability that would otherwise make it very difficult or inhibit them from being able to access justice,” he said.
Alberta Justice Minister Mickey Amery
“Albertans expect, and Alberta’s government is committed to provide, robust oversight of public interest dollars,” he said. “Every organization that received ALF funding for frontline services continues to receive stable funding.”
Amery said if a grant application failed to clearly identify how funding would be used for frontline services, the ministry deferred approval until the organization could reapply with a plan for using the funds appropriately.
“To be clear, to ensure uninterrupted operations, stable funding has been provided; however, any large increases or entirely new grant applications were rejected until the applicant could properly justify the funding request,” he said.
Bill 39 is currently at second reading in the Alberta legislature.