Question Period Note: BUDGET 2025

About

Reference number:
VAC-2025-QP-00053
Date received:
Nov 19, 2025
Organization:
Veterans Affairs Canada
Name of Minister:
McKnight, Jill (Hon.)
Title of Minister:
Minister of Veterans Affairs

Suggested Response:

• Budget 2025 will provide $184.9 million over four years, and $40.1 million ongoing for Veterans Affairs Canada.
• The proposed investments stabilizes processing capacity for disability benefits applications and enables the department to modernize operational processes and IT infrastructure.
• It delivers faster service for Veterans and demonstrates this government’s responsibility to ensure all Veterans and their families receive the support and services they need, when they need it from Veterans Affairs Canada.
• The Budget also includes a change in the reimbursement rate for Cannabis for Medical Purposes and amendments to VAC legislation for clarification purposes.

Background:

The ongoing funding will support faster decisions for disability benefit applications which have been increasing on average 8% per year.
VAC will also adjust the reimbursement rate for cannabis under the Cannabis for Medical Purposes benefit to bring it more inline with the current market price.
Legislative amendments to the Department of Veterans Affairs Act and the Veterans Health Care Regulations will clarify VAC’s methodology used to calculate the maximum monthly Accommodation and Meals charge in the long term care program on a retroactive and go-forward basis.
Legislative Amendments to the Pension Act and the Pension and Allowances Adjustment Regulations will clarify the methodology used to escalate annual adjustments to the disability pensions and other related amounts.
Legislative amendments to the Veterans Well-being Regulations will clarify how the Earnings Loss Benefit was calculated before April 1, 2019.

Additional Information:

QUICK FACTS & FIGURES
Item(s)
• There has been more than $11 billion invested in Veterans’ programs since 2019.

• $40.1 Million annually is provided on an ongoing basis to stabilize the disability benefits workforce and ensure they can provide timely services to Veterans.

• $12.2 Million is provided for each of the next two years to modernize operational processes and IT infrastructure.