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 (VAC)’s top priority is to support Veterans. Over 90% 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, VAC 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.

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
Lapsed 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.