Canada's provincial and territorial health ministers say a one-year extension of federal funding for mental health, addiction treatment and home care is not enough, warning that federal plans would amount to a spending cut that is "the largest in a generation." The ministers made the comments on Thursday in Winnipeg at the end of their first day of discussions.

What did Ottawa announce?

Late on Wednesday, federal Health Minister Marjorie Michel announced on social media that Ottawa plans to extend programs set to expire in 2027 for one year, representing $1.2 billion in funding. Michel said in her letter that the extension provides stability as the federal government works to strengthen the health-care system.

Why do provinces say it's not enough?

Manitoba Health Minister Uzoma Asagwara, speaking alongside officials from all 13 provinces and territories, called the extension a first step but said ministers are unified in stating they need to go much further. Asagwara said the fiscal cliff remains on the horizon and that the extension moves the issue down the road while creating additional pressure, citing other agreements expiring in 2027, such as funding for rare diseases.

Ontario Health Minister Sylvia Jones said the temporary commitment "does not fill us with a lot of joy." She said many funding streams in Ontario would have to be cut in half without federal support.

What are the ministers asking for?

The ministers are pushing for longer-term commitments on bilateral agreements and want the Canada Health Transfer, the federal government's main funding vehicle for provincial health care, to grow at a minimum of 5 per cent a year. The transfer is expected to reach a 3-per-cent growth rate in 2028.

  • One-year extension: $1.2 billion for mental health, addictions and home care
  • Requested Canada Health Transfer growth: at least 5 per cent annually
  • Scheduled growth in 2028: 3 per cent

Asagwara said the federal health minister's letter lacks a clear path to boosting transfers and renewing other funding agreements. The ministers are scheduled to meet with Michel on Friday in Winnipeg.

FAQ

What did the federal government announce?

Federal Health Minister Marjorie Michel announced a one-year extension of funding for mental health, addiction treatment and home care, worth $1.2 billion, according to a social media post and letter.

What do the provinces and territories want?

They are seeking long-term commitments on bilateral agreements and a guarantee that the Canada Health Transfer will grow by at least 5 per cent annually.