Photo: Downtown Hanna. Rural Alberta Report / C. Bowman

The Alberta government is moving to fully eliminate operational funding for Regional Economic Development Alliances (REDAs) by 2027, completing a transition that began in 2024.

Information from Rural Municipalities of Alberta (RMA) shows the province has confirmed that no ongoing operating grants will be provided to REDAs after 2027.

Instead, the province is restructuring how these organizations are funded. Beginning after the 2026–27 fiscal year, REDAs will no longer receive base operational support and will have to rely on project-based funding or local revenue sources.

This change puts pressure on communities that depend on regional collaboration, including those in Stettler, Camrose, Wainwright and Vermilion, where partnerships have long supported investment attraction and economic planning. These organizations will now need to fund operations through municipal contributions, industry partnerships and other local sources, as the province moves toward a model that expects REDAs to be self-sustaining rather than rely on annual grants.

The shift to a project-only model is already underway. By 2027, provincial support will be delivered entirely through competitive programs, where REDAs must apply for funding tied to specific economic development initiatives rather than receive stable yearly funding.

Municipal organizations have raised concerns about the timeline and impact of the phase-out. The RMA has stated that REDAs are not well suited to operate without predictable core funding because their role involves ongoing regional coordination, not just short-term projects.

There is also concern that smaller rural municipalities will face the greatest strain. Without provincial operational funding, communities may have to either increase their financial contributions or risk losing access to regional economic development services altogether.

In practical terms, the 2027 deadline marks the end of a long-standing funding model that supported REDAs for more than two decades. Going forward, their survival will depend on local buy-in and their ability to compete for project funding in a more market-driven system.