Question Period Note: 2025–26 DEPARTMENTAL PLAN

About

Reference number:
VAC-2025-QP-00042
Date received:
Nov 19, 2025
Organization:
Veterans Affairs Canada
Name of Minister:
McKnight, Jill (Hon.)
Title of Minister:
Minister of Veterans Affairs

Suggested Response:

• The 2025–26 Departmental Plan (published on June 17, 2025) lays out the Department’s priorities for the year and provides an outline of the important work that we will undertake.
• More than 90% of the $7.8B in planned spending for 2025–26 will be for payments to Veterans, their families, and other program recipients.

Background:

The 2025–26 Departmental Plan (DP) provides parliamentarians and Canadians with a clear view of the results Veterans Affairs Canada (VAC) aims to achieve and how resources will be used to deliver for Veterans and their families. It is tabled in Parliament annually and published online to ensure transparency and accountability.
Highlights from the 2025–26 Plan include:
Benefits, Services, and Support
• Cutting disability benefit processing times through staffing, automation, and My VAC Account enhancements.
• Expanding mental health services, including e-therapy and PTSD support, and improving access for women, Indigenous, and underserved Veterans.
• Enhancing financial supports through updates to the Income Replacement Benefit, Veterans Emergency Fund, and VAC systems.
• Supporting rehabilitation, vocational services, and employment through the National Veterans Employment Strategy and enhanced transition services.
• Strengthening community engagement via peer support networks and the Veteran and Family Well-being Fund.
• Expanding efforts to combat Veteran homelessness and improve home accessibility.
Commemoration
• Marking key anniversaries: 80th of the end of WWII, Liberation of the Netherlands, and V-J Day; 25th of the Unknown Soldier’s repatriation; 100th of Beaumont-Hamel Memorial.
• Beginning construction of the National Monument to Canada’s Mission in Afghanistan in 2025.
Veterans Ombudsperson
• Streamlining decision-making and complaint resolution for faster, fairer outcomes.
• Expanding outreach through town halls, events, and social media to raise awareness and support.
• Collaborating with VAC to address complaints and promote fairness in service delivery.
Internal Services
• Modernizing technology and tools, including AI testing to improve service and Access to Information processes.
• Advancing sustainability through green procurement and emission-reduction initiatives.
• Supporting a healthy, inclusive workplace and strengthening recruitment with a Veteran-focused strategy.
• Improving communications, stakeholder engagement, and recognition of diverse Veterans.

Additional Information:

QUICK FACTS & FIGURES
Disability Benefits and Processing Times
• 72% backlog reduction since 2020. Thousands of Veterans now receive decisions faster
• $164.4M in funding (Nov 2023) allows VAC to retain trained staff until March 2026, sustaining progress
• Streamlined medical consultations and improved decision-maker training to speed up decisions. Expanded use of automation and modernized tools so staff can focus on complex cases
Benefits, Services and Support
• Key priority continues to be reducing processing times with various initiatives such as using digital solutions and streamlining processes to expedite decision-making. While there has been significant progress, more work is underway
• Introducing innovative approaches like social prescribing, which connects clients to a variety of non-clinical community services aimed at improving their health and overall well-being.
Workforce (FTEs)
• Planned FTE reduction in 2026-27 reflects the end of temporary funding, not service cuts
• Temporary funding for Disability Benefits continues until March 2026, Case Management until March 2027, ensuring continued support during transition
Forecasted Spending
• While planned spending appears to decline in 2026-27, updated forecasts show demand continuing to grow
• Future plans will be adjusted to reflect higher need, keeping spending in line with 2025–26 levels. Veterans’ benefits remain fully protected and will not be reduced
Canadian Veteran Health Survey (CVHS)
• CVHS launched in 2022 to replace LASS. It now includes all Veterans, not just those released after 1998
• Aligns with Canadian Community Health Survey for better comparisons with the general population. Will be conducted every two years (next cycle in late 2024) giving VAC more timely, representative data to guide policy and services
Commemoration
• The construction of the National Monument to Canada’s Mission in Afghanistan is a priority, with plans to begin building in late spring or early summer 2025