OTTAWA – Health ministers from across Canada have expressed concern over the potential "profound and negative" impacts on patients and healthcare jobs if federal funding agreements for mental health, addictions, and home care are not renewed in the upcoming budget. This meeting, which took place earlier this week, included discussions with finance department counterparts about the anticipated loss of $1.2 billion in funding scheduled for next March.
The ministers released a joint statement on Thursday, urging the federal government to actively participate as a committed funding partner. They emphasized the need for urgent assurance that Canadians would continue to have access to essential care and services. Marion Cooper, president and lead executive officer of the Canadian Mental Health Association, highlighted that dedicated funding over the past decade has facilitated the establishment of various programs nationwide, including those aimed at youth, early intervention, and caregiver support.
Cooper cautioned that any reduction in targeted funding would be detrimental, especially given the ongoing significant needs within communities, despite current funding levels. She stressed a "fairly strong consensus" among governmental and advocacy groups regarding the necessity of maintaining dedicated funding. According to Cooper, incorporating such funding within a broader Canada Health Transfer could lead to misallocation, as these resources often do not reach mental health or community-based services.
The health ministers have characterized the looming expiration of dedicated funding agreements as a "fiscal cliff," posing a genuine risk to patient care and potentially leading to job losses within the healthcare sector. The federal government had previously pledged a total of $200 billion in additional health funding over a span of ten years in the 2023 budget, aiming to expand access to primary care, reduce surgical backlogs, enhance mental health and addiction services, and modernize the healthcare system. This funding came in response to widespread healthcare challenges experienced during and after the COVID-19 pandemic.
Among the funding, $4.8 billion was earmarked over four years specifically for improvements in home care, community care, and mental health and addiction services, with this funding set to conclude in March 2027. In addition, $3 billion aimed at enhancing long-term care safety is due to expire in 2026, and $1.7 billion allocated for personal support workers’ wages will be distributed by 2028.
Manitoba's Health Minister Uzoma Asagwara voiced his concerns during a Thursday press conference, describing a "looming fiscal cliff" that could have "devastating consequences" for health systems. He emphasized that it would be unacceptable for Canada to experience the largest healthcare cut in a generation, especially at a time when mental health needs are escalating, and public concern about access to healthcare is at a peak. Asagwara affirmed that all health ministers across the country stand united on this issue.
Provinces and territories have also expressed worries regarding the future of the Canada Health Transfer, which is currently guaranteed to increase by five percent annually until 2028. Following this period, the federal budget projects a minimum growth rate of three percent per year. Premiers have insisted on maintaining the five percent growth floor.
Notably, federal Health Minister Marjorie Michel and Finance Minister François-Philippe Champagne did not participate in the recent meeting. Since assuming her role last year, Michel has identified mental health as one of her top three priorities. She is scheduled to meet with provincial and territorial counterparts this month in Winnipeg, with her office indicating her intention to approach this meeting in a collaborative manner.
In a statement from her spokesperson, Alexandre Bergeron, it was emphasized that many government programs and funding commitments are set for specific periods, allowing for periodic reviews or evaluations of their effectiveness before any decisions to renew or modify them are made. Meanwhile, Champagne is expected to unveil the Liberals' latest fiscal plan later this fall.
This report was initially published on October 1, 2026, and includes contributions from Ian Bickis in Winnipeg.
