Children’s Special Allowances or CSA is a tax-monthly payment that is adjusted to inflation. CSA replaces the Canadian Childcare Benefit (CCB) when a child under the age of 18 is in the care of a federal, provincial, territorial or First Nations agency or institution. Monthly CSA payments are equal to the maximum monthly payment under the CCB.
This program was created to promote equity for children in foster care, group homes or other similar living arrangements.
The agency organising the child’s living arrangement must apply for the funding through the CRA. The payments are directed to whatever adult/adults have the responsibility for caring for the child and are to only to be used to care for, maintain, educate, train or advance the child.
Recently, the Child Special Allowance (CSA) program has faced heavy criticism, with several provinces being accused of withholding CSA payments from children in care. Supposedly, provinces have been diverting the money into general revenue funds instead of directing these funds to support children. Additionally, there is growing speculation that the federal government may have been aware but did not intervene. This issue is further complicated by the overrepresentation of Indigenous children in foster care as this raises concerns about an additional layer of discrimination at work.
As a result, several class-action lawsuits have been filed across Canada, alleging a breach of Charter rights, specifically for the discrimination against children in care. In 2024, Manitoba reached a $530-million settlement for approximately 30,000 effected individuals in care from 2005 to 2019. Similar lawsuits are currently ongoing in Alberta and more lawsuits are expected in the coming years.
https://www.youtube.com/watch?v=Zb9KiDduCgA