Budget targets southern Alberta with highway and hospital spending
The provincial budget highlights $387 million in capital spending over the next three years in southern Alberta, including $152 million to twin Highway 3 from Seven Persons to Medicine Hat.
If passed, the budget will also support municipalities in the south with $78 million in 2026-27 funding under the Local Government Fiscal Framework.
Capital project highlights also say the region is set to receive support for three school projects in 2026-27, part of a commitment over three years for 30 projects the province has identified as underway.
Public-facing budget documents offer no funding estimates for school capital projects in the south or anywhere else. But the overall provincial total is $3.3 billion over three years for 161 projects, a blend of new builds, expansions and upgrades.
Tabled Feb. 26 in the legislature, the new budget forecasts consecutive annual deficits of $9.4 billion, $7.6 billion and $6.9 billion. The shortfalls are the result of dramatic population growth and its pressure on core services, combined with lower-than-anticipated oil and gas revenue in a time of global uncertainty, the government says.
But provincewide capital spending is forecast to increase by 8.5 per cent to $28.3 billion over the next three years.
Preparation of the budget predated the ongoing U.S. and Israel attacks on Iran, which destabilized the Middle East and the oil market, causing a steep increase in per-barrel pricing.
Other highlights for the south are:
—$74 million over three years to replace the Cardston Health Centre. Built in 1959, it’s one of the oldest hospitals in the province.
—$65 million over three years for Highway 1A upgrades near Stoney Nakoda First Nations.
—$59 million over three years for developing a catheterization laboratory at Chinook Regional Hospital in Lethbridge and enhancing intensive-care unit capacity at Chinook and at Medicine Hat Regional Hospital. The Lethbridge money is toward a $445-million total investment in the laboratory.
—$35 million over three years to develop the Rural Medical Teaching School at the University of Lethbridge.
—$2 million over three years to fund the Centre for Community Wellness project at Medicine Hat College.
Alberta | AB, Alberta Budget, Capital Spending, Education Funding, Healthcare, Highway Infrastructure, Hospital Upgrades




