The budget for a new hospital for inmates in federal facilities is now estimated at $1.3 billion, over three times the $400-million estimate made public in 2021, according to federal documents and sources.

The funding for the project in New Brunswick was approved by Treasury Board in December 2024, but the higher amount has not been made public as Ottawa is in a bidding process with construction firms.

Sources familiar with the matter indicate that the project survived Ottawa’s expenditure review ahead of the Nov. 4 federal budget, despite pressure to reduce spending at Correctional Service Canada.

The 155-bed centre will offer mental and physical health care in French and English to men and women in the federal correctional system. It will be in a new building and will replace an outda

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