Question Period Note: LAPSED FUNDING

• Veterans’ benefits and services are demand-driven; No matter how many Veterans come forward and when, the Department’s funding model guarantees that funds authorized for their services and benefits are always available to our Veterans
• Veterans Affairs Canada’s top priority is to support Veterans. 94% of the department’s budget funds Veterans’ programs, benefits and services. This amounted to $7.3 billion last year alone.
• Between 2015-2016 and 2024-2025, Veterans Affairs Canada experienced a 92% increase in the number of applications received for disability benefits.
• To keep up with the rise in demand and ensure that Veterans get services and benefits when they need them, over $11.5 billion has been invested for Veterans since 2016.

Lapsed Funding 2024-25 is $157M – approximately $146M (97%) are program funds and the remaining (3%) are operational funds
93% of the 2024-25 lapsed or unspent funds are a quasi-statutory expenditure authority approved by Parliament to cover the costs of Veterans benefits and services.
The Department has no authority to spend these funds for any other purpose thereby safeguarding these funds and ensuring they are available whenever a client comes forward and is deemed eligible.
4% of the 2024-25 lapsed or unspent funds are a non quasi-statutory expenditures and were made available in fiscal year 2025-26 through standard funding mechanisms available to Departments.
The remaining 3% of the 2024-25 unspent funds were approved by Parliament to cover our Departmental operating costs and these unspent funds were made available in fiscal year 2025-26 through standard funding mechanisms available to Departments.
Therefore 100% of the $157 unspent funds are still available to spend when needed.
Lapsed Funding 2023-24 is $51.6M – approximately $44M (85%) are program funds and the remaining (15%) are operational funds
85% of the 2023-24 lapsed or unspent funds are a quasi-statutory expenditure authority approved by Parliament to cover the costs of Veterans benefits and services.
The Department has no authority to spend these funds for any other purpose thereby safeguarding these funds and ensuring they are available whenever a client comes forward and is deemed eligible.
The remaining 15% of the 2023-24 unspent funds were approved by Parliament to cover our Departmental operating costs and these unspent funds were made available in fiscal year 2024-25 through standard funding mechanisms available to Departments.
Therefore 100% of the $51.6M unspent funds are still available to spend when needed.

QUICK FACTS & FIGURES
Lapsed Funding – 24/25
Lapsed funding for 2024-25 was $157M (2% of Total Budget)
• $121M - Pension for Life Programs
• $25M – Normal amounts of unspent funds in Quasi Stat programs
• $5M – Operating
• $5M – Manuge
• $1M – Normal amounts of unspent funds in non-Quasi Stat programs and SPAs
Lapsed Funding – 23/24
Lapsed funding for 2023-24 was $51M (1% of Total Budget)
• $10M - Pension for Life Programs
• $2.2M – Disability Pension and Awards Programs
• $30M – Normal amounts of unspent funds in 20 Quasi Stat programs
• $8M – Operating
• $1.4M – Normal amounts of unspent funds in non-Quasi Stat programs and SPAs
Lapse funding and Demand-Driven Programs
• Money returned to the consolidated revenue fund (lapsed) for quasi-statutory programming is accessible the next year to fund Veterans programming based on demand. This is how “quasi-statutory” program authority works. Veteran programs/services are funded based on need regardless of when the Veterans come forward to receive the benefit.