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Health ministers from across the country say they are concerned about “profound and negative” effects on patients and health care facilities if federal funding agreements for mental health, addictions and home care are not renewed in this year’s budget.
Ministers met earlier this week with their counterparts from finance departments to discuss the expected loss of $1.2 billion in funding next March.
In a statement released Thursday, ministers said they are “united in calling on the federal government to come to the table as a full and committed funding partner and provide urgent assurances that Canadians continue to have access to the life-saving care and services they need.”
Marion Cooper, president and chief executive officer of the Canadian Mental Health Association, said dedicated mental health and addiction funding over the past decade has led to the creation of programs and services across the country, from youth programs to early intervention and caregiver support.
“Seeing any reduction in targeted funding would be problematic and concerning when we know there is still significant need in our community, even with the current level of funding,” she said.
Cooper said there is a “pretty strong consensus” among different levels of government and advocacy organizations that dedicated funding is needed.
“When it’s included in a broader kind of Canada health transfer, our concern is that those resources are often not necessarily being directed to mental health or to community-based services,” she said.
Health ministers say the end of dedicated funding agreements amounts to a “fiscal cliff” which will have a real impact on patients, and warn there could be job losses in the health sector.
The federal government has pledged a total of $200 billion in additional health funding over 10 years in the 2023 budget.
It was intended to expand access to primary care, reduce surgery backlogs, improve mental health and addiction services, and modernize the health care system, following widespread issues in health care across the country during and after the COVID-19 pandemic.
A portion of that sum — $4.8 billion — was earmarked over four years for improvements to home care, community care and mental health and addiction services. This funding is scheduled to end in March 2027.
Another $3 billion in funding intended to improve long-term care security has been set to sunset in 2026, and $1.7 billion for personal support worker wages will be paid out through 2028.
Manitoba Health Minister Uzoma Asagwara told reporters Thursday that Canadians face a “looming fiscal cliff” with “devastating consequences” for health systems.
“We can’t see what would be the biggest cuts to health care in a generation — not at a time when we know mental health needs are increasing, and Canadians care deeply about accessing the health care they need,” Asagwara said.
“Every health minister across the country is united in this.”
Provinces and territories have also raised concerns about the future of Canada’s health transfer, which is guaranteed to grow every year by five percent until 2028. The federal budget states that the transfer will grow by a minimum of three percent per year after that date. Premiers say that the five percent floor must be maintained.
Health ministers said that Federal Health Minister Marjorie Michel and Finance Minister François-Philippe Champagne refused to attend this week’s meeting.
Michel has said since taking office last year that mental health is one of her top three priorities as minister.
She is set to meet with her provincial and territorial counterparts later this month in Winnipeg, and a spokesperson for her office said she intends to collaborate on that meeting.
“It is important to note that many government programs and funding commitments are agreed upon for specified periods, which allows the government to periodically review or evaluate their effectiveness before deciding to renew or make changes,” Alexandre Bergeron, Michel’s spokesman, said in an emailed statement.
Champagne is expected to release the Liberals’ latest tax plan later this fall.
This report by The Canadian Press was first published on October 1, 2026.
– With files from Ian Bickis in Winnipeg
