(ID 109995821 © Piotr Adamowicz | Dreamstime.com)

By rdnewsNOW Staff

BILL 39

Proposed bill sparks resignations and funding stress for Alberta Law Foundation and beneficiaries

Apr 11, 2025 | 2:07 PM

The Alberta Law Foundation claims proposed changes to the Legal Profession Act have already been utilized to deny or reduce $10 million in non-profit grant funding, but Minister of Justice Mickey Amery says the funding decisions are being mischaracterized.

Bill 39, the Financial Statues Amendment Act, 2025, passed second reading in the Alberta legislature on Mar. 25 and proposes amendments to eight acts, one of which is the Legal Profession Act.

If passed, the changes proposed would double the Alberta Law Foundation’s statutory contributions to Legal Aid Alberta to 50 per cent from 25 per cent, thereby reducing the government’s own contributions. The bill would also require the Foundation to receive ministerial approval for all grants and other financial commitments over $250,000.

According to the opposition Alberta NDP, the Foundation funds organizations that provide legal assistance, education and Indigenous legal services, including rural legal clinics, domestic violence supports and community based programs,

The government says the changes are intended to ensure Legal Aid Alberta funding is maintained at an adequate level.

DROP-IN SPORTS NOW 18+ ONLY

Vandalism in Sylvan Lake continues to have community impact

2h ago

Council priorities

Lacombe city council gives update to 2024 strategic plan

4h ago

relationship not a one-way street

Podcast: Red Deerians working hard to steward planet as Earth Day circles around

5h ago

“This is not a budgeting adjustment, it’s 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” says Paul G. Chiswell, board chair of the Alberta Law Foundation. “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.”

The Foundation posits that the aforementioned $10 million in reduced funding occurred “despite repeated reassurances from government that these changes would not impact funding for community based organizations.”

Amery responded to the concern, stating, “The Alberta Law Foundation has unfairly and inaccurately mischaracterized recent grant decisions,” and that the changes are necessary to ensure long term financial stability.

He explains, if a grant application failed to outline how funding would be used for front-line services, its approval was postponed until the organization could re-apply with an adequate plan.

“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 says.

As of Apr. 10, two government-appointed members of the Foundation’s board have resigned in protest to the proposed changes, Dawn-Lyn Blake and Seun Ogunsola.

In his resignation letter, directed to Minister Amery, Ogunsola says “By requiring ministerial approval for all grants exceeding $250,000, Bill 39 effectively removes the Board’s ability to act independently. In doing so, it undermines the very foundation of the work we have been entrusted to carry out.”

The Foundation says as a result of this legislation, a pre-approved $100 million commitment to construct and endow 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,” shares 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.”

Increasing the Foundation’s statutory contribution to Legal Aid Alberta to 50 per cent is also expected to put strain on the organization. With more than 65 legal programs and organizations supported by Legal Aid, the NDP says the proposed cut of $22 million in provincial funding will jeapordize these programs as the Foundation is forced to “pick up the slack.”

For Red Deer, this means the Community Legal Clinic—Central Alberta could lose over $1.9 million in funding. Kathy Parsons, executive director of the clinic, says this is the “worst possible time” to reduce funding, with economic tensions and uncertainty increasing the need for legal support in areas like housing, family law and protection orders.

“The UCP government appears to be solely focused on cuts, chaos, corruption, and cruelty. They’re slashing funding to Legal Aid, creating confusion and instability in our justice system, and undermining independent organizations with political interference,” comments Irfan Sabir, Alberta NDP shadow minister for justice. “Access to justice is a pillar of democracy, and the UCP’s actions are nothing short of an attack on the most vulnerable Albertans.”

The party calls on the provincial government to reverse its cuts, fund Legal Aid Alberta directly and remove political interference from the funding process.

For local news delivered daily to your email inbox, subscribe for free to the rdnewsNOW newsletter here. You can also download the rdnewsNOW mobile app in the Google Play and the Apple App Stores.