Liberal Budget to Cut $4.23 Billion from Veterans Affairs
The Liberal government has announced a plan to reduce the Veterans Affairs budget by $4.23 billion over the next four years. While several departments face similar reductions, the scale of cuts varies significantly.
Details of the Budget Cuts
- Veterans Affairs: $4.23 billion reduction over four years.
- Royal Canadian Mounted Police (RCMP): $6 billion reduction.
- National Defence: $1.92 billion reduction.
- Canada Border Services Agency (CBSA): $408 million reduction.
- Women and Gender Department: smaller cuts compared to others.
Government Justifications
“The government is committed to ensuring veterans receive the timely, compassionate support they need.”
“Veterans Affairs will meet up to 15 per cent in savings targets over three years while protecting client-facing services.”
The budget describes these reductions as “savings targets,” emphasizing efficiency rather than service cuts. Officials claim that direct support for veterans will remain intact.
Changes to Veterans’ Medical Cannabis Benefits
Part of the savings will come from adjusting reimbursement rates for veterans’ medical cannabis. The current reimbursement of $8.50 per gram will be reduced to $6.00 per gram, moving closer to prevailing market prices.
“Currently, the program reimburses medical cannabis at $8.50 per gram, which is significantly above the market price. VAC will transition to reimburse at $6.00 per gram – which still remains above, but closer to the market price,” the budget states.
Impact and Public Response
Critics argue these reductions could strain services for veterans, though the government insists essential support will not be affected. The broader cuts reflect an effort to contain federal spending and redirect resources to other priorities.
Author’s summary: The Liberal government’s 2025 budget introduces major spending cuts, including $4.23 billion from Veterans Affairs, while pledging to maintain essential services for veterans.