October 1, 2026
Provincial and Territorial Ministers Meet to Discuss Federal Health Funding and Concerns of Imminent Fiscal Cliffs
Provincial and Territorial (PT) [1] Ministers of Health and PT Ministers Responsible for Mental Health, Addiction, and Recovery (MHAR) met to discuss the importance of the federal government maintaining its partnership with PTs and continuing to invest in the health of Canadians. The meeting was chaired by PT Health Minister Lead, Uzoma Asagwara, the Manitoba Minister of Health, Seniors and Long‑Term Care, and supported by PT MHAR Minister Lead, Bernadette Smith, the Manitoba Minister of Housing, Addictions and Homelessness. Given the importance and urgency of the discussion, PT Health and MHAR Ministers were joined by PT Finance Chair Minister Caroline Wawzonek of the Northwest Territories, and other PT Ministers of Finance. The federal government was invited to join but declined to participate in the meeting, despite PT Ministers of Health emphasizing the urgency of the issue.
Annual federal funding of $1.2 billion for home and community care and mental health and substance use services is set to expire on March 31, 2027, the first of a number of federal health funding sources set to end in the coming years. Ministers highlighted the profound and negative impacts it will have on Canadian patients and workers, and the vital health care services and jobs that may be put at risk, if this funding is cut and not renewed in the upcoming federal budget. Further, Ministers emphasized the need for the federal government to commit to maintaining at minimum a 5% Canada Health Transfer growth rate annually after March 31, 2028.
Over the past decade, these federal investments have supported PT actions in responding to the growing demand for mental health, addiction, and recovery services and home and community care, in accordance with their own priorities and local needs. Ministers discussed the progress and improved health outcomes this partnership has yielded, while emphasizing the significant, real-world impacts that these funding cuts will have on the lives of Canadians, including patients and caregivers. In addition to this progress, Ministers noted the substantial workforce and economic productivity benefits from these investments. These services and programs represent thousands of critical jobs that deliver care to Canadians. This workforce would be severely impacted across all jurisdictions, should this federal funding end.
Ministers also received a presentation about economic analysis conducted by the University of Toronto on the impact of federal health funding to PTs. This research demonstrates clear evidence that this funding has yielded significant returns on investment that exceeds annual federal funding investments. This includes progress in expanding integrated youth services, improvements in mental health outcomes, and reductions in potentially avoidable admissions into long-term care.
Canadians are relying on these services more than ever. At a time of continued economic and global uncertainty, PT Ministers reiterated that continued partnership with the federal government for these services is essential. If not renewed, this reduction in federal funding would be the most significant cut in health care funding in a generation and would erode critical services.
PT Ministers are united in calling on the federal government to come to the table as a full and committed funding partner and urgently provide certainty that Canadians will continue to have access to the life-saving care and services they need. Ministers look forward to reporting back to Premiers on this important work.
Minister Asagwara will seek to meet with the federal Minister of Health, Marjorie Michel, the federal Minister of Finance, François-Philippe Champagne, and Minister Wawzonek to discuss outcomes of the September 29 PT meeting, including PT concerns about the future of these crucial investments.
PT Health and MHAR Ministers look forward to convening in Winnipeg, Manitoba, in October for the annual in-person Health Ministers' Meeting, and to receiving a clear response from the federal government on the future of these crucial investments.
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[1] Due to ongoing provincial election periods, Québec and British Columbia are operating in caretaker mode and did not take formal positions on the matters discussed at this meeting.
The Province of Manitoba is distributing the attached news release on behalf of provincial and territorial health ministers, as well as provincial and territorial ministers responsible for mental health, addictions and recovery.