Apprenticeship Grants Canada 2026: What Replaced the $4,000?

For years, the "Apprenticeship Incentive Grant" (AIG) was the easiest money in Canada. You finished your first year of plumbing or welding, and the government sent you a cheque for $1,000.

As of March 31, 2025, that program is dead.

If you are starting your apprenticeship in 2026, you cannot apply for the old federal cash grants. But don't panic. The money hasn't disappeared—it has just moved.

To solve the labour shortage, individual provinces (especially Ontario, BC, and Alberta) have launched their own aggressive grants that often pay more than the old federal system. Plus, the federal government has expanded the Canada Apprentice Loan to be permanently interest-free.

If you are looking for no-degree jobs that pay you to learn, here is how to find the "free money" in 2026.

1. The "New" Reality: Provincial Grants

Since Ottawa cut the federal grants, the provinces are now the ones writing the cheques.

Ontario: The "Achievement Incentive"

Ontario is desperate for tradespeople.

• The Deal: The Achievement Incentive (and the Graduated Apprenticeship Grant for employers) flows money through the sponsor.
• Tools Grant: This is the big one for you.
  • Amount: $600 to $1,000 (depending on the trade).
  • Eligibility: You must be a registered apprentice in a eligible trade (like Automotive Service Tech or Electrician).
  • How to get it: You apply through the Employment Ontario portal after signing your training agreement.

British Columbia: Training Tax Credits

BC uses the tax system to pay you back.

• The Deal: You can claim the Training Tax Credit when you file your taxes.
• Amount: Approx. $2,500 – $4,000 total over the course of a 4-year program.
• Level 3 & 4: The credits get bigger as you advance ($1,000+ for completing higher levels).

Alberta: The "Scholarship" Model

Alberta offers over 900 scholarships of $1,000 each for apprentices.

• The Trick: You don't "apply." You are automatically considered when you register your marks, but you must consent to the "High School Apprenticeship Scholarship" in your MyTradeSecrets account.

2. The Canada Apprentice Loan (CAL): $4,000 Interest-Free

This is not a grant, but in 2026, it is the next best thing.

• The Offer: You can borrow up to $4,000 per period of technical training (when you go to school for 8 weeks).
• The Interest: 0% (Zero). The government permanently removed interest.
• Why take it? Even if you don't need the money, you should take it. Put it in a High-Interest Savings Account (HISA) earning 4%. You make free money on the interest, and pay back the original $4,000 slowly over 10 years.
• Eligibility: Must be in a Red Seal trade.
• Internal Link: This is a smart financial hack similar to the Tuition Reimbursement perks at Starbucks.

3. The "Tools Deduction" (Tax Write-off)

Tools are expensive. A mechanic's Snap-on chest can cost $10,000.

• The Deduction: You can deduct the cost of eligible tools from your income on your tax return (up to $500–$1,000 depending on income).
• The Condition: Your employer must certify that you are required to provide your own tools (Form T2200).
• Receipts: Keep every single receipt. If the CRA audits you and you don't have the paper, you owe the money back.

4. Employment Insurance (EI) During School

Many apprentices forget this.

• The Situation: When you go to "Block Release" training (college) for 8 weeks, you aren't working.
• The Pay: You are eligible for EI Regular Benefits.
• The Hack: Apply for EI 1 week before you stop working. The waiting period can delay your first cheque.

Comparison Table: 2025 vs. 2026 Funding

Practical Questions Answered

"Is the AIG really gone?"

Yes.

If you check the Canada.ca website, it explicitly states applications closed March 31, 2025. Do not trust outdated blogs.

• Exception: If you completed your Level 1 or 2 before March 31, 2025, you might still be able to submit a late application if you have a valid excuse, but the window is closing fast.

"Does the employer keep the grant?"

No.

• Your Money: The Tools Grant and Apprentice Loan go to your bank account.
• Their Money: The Graduated Apprenticeship Grant (Ontario) goes to the employer. This is actually good for you—it encourages them to hire you!
• Internal Link: Use this knowledge when applying to Home Depot Construction Jobs—tell the contractor they get paid to hire you.

"Can I get grants for non-Red Seal trades?"

Rarely.

Most funding is strictly for Red Seal trades (Plumber, Electrician, Welder). If you are an apprentice "Hairstylist" or "Cook" (which are trades but often treated differently), you qualify for fewer federal dollars but may still get provincial help.

Frequently Asked Questions

How do I apply for the Ontario Tools Grant?

You cannot apply until you have a Registered Training Agreement (RTA). Once your employer signs you up with the ministry, you will receive an invitation to the Employment Ontario portal. You upload your tool receipts there.

When do I have to pay back the Canada Apprentice Loan?

You do not have to make any payments as long as you are a registered apprentice. Once you finish (get your Red Seal) or quit, you have a 6-month non-repayment period. After that, you start making monthly payments, but remember—it is interest-free, so there is no penalty for taking your time.

Are women eligible for extra money?

Yes.

While the main grants ended, the Apprenticeship Incentive Grant for Women (AIG-W) was a separate pilot. Check the current status on Canada.ca, as diversity initiatives often get extended longer than general programs. Additionally, non-profits like Women Building Futures (Alberta) offer private bursaries.

Does the government pay for my tuition?

Indirectly.

The tuition for trade school (e.g., Humber, BCIT) is heavily subsidized. You typically pay only $400 – $600 for an 8-week block. The real cost is the "lost wages" while you aren't working, which is what EI is for.

About the author

Jeff Calixte (MC Yow-Z) is a Canadian career researcher and digital entrepreneur who studies hiring trends, labour market data, and real entry-level opportunities across Canada. He specializes in simplifying the job search for newcomers, students, and workers using practical, up-to-date information.

Sources

• Government of Canada (Apprenticeship Funding Changes): https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/grants.html
• Skilled Trades Ontario (Tools Grant): https://www.skilledtradesontario.ca/
• Alberta Student Aid (Apprentice Scholarships): https://studentaid.alberta.ca/scholarships/

Note:

Job availability, wages, and hiring conditions can vary widely by province, employer, season, and experience level. All salary ranges and job examples in this guide are estimates based on current labour market data. Always confirm details directly with the employer before applying.