Veterans Affairs is facing significant funding cuts in the 2025 budget, raising concerns that the government is neglecting veterans while simultaneously expanding the Canadian Armed Forces. The department is expected to find $4.23 billion in savings over the next four years, primarily due to a new strategy aimed at controlling the rising costs of government-funded medical cannabis. The 2025 budget indicates that Veterans Affairs will experience one of the largest reductions in federal funding, second only to the Housing, Infrastructure and Communities department, which will see $5.4 billion cut from its budget over the next five years. However, the housing cuts are partly attributed to programs being transferred to other federal agencies, unlike the situation with Veterans Affairs. Despite the budget cuts, Veterans Affairs maintains that the range of benefits and services for veterans will remain unchanged. The department stated, "even after the budget cuts, the suite of benefits and services provided by Veterans Affairs Canada remains the same." The funding reductions are largely linked to a program that supplies cannabis to veterans of the Royal Canadian Mounted Police (RCMP) and the Canadian Armed Forces. This program began in 2008, allowing veterans with a doctor's prescription to receive federally licensed cannabis for medical use. Initially, only a small number of veterans participated, with just 37 clients in 2011, costing the department $103,424. However, following the legalization of recreational marijuana in Canada in 2018, the program's enrollment surged. By 2019, the number of cannabis clients had grown to 13,270, and by 2021, it increased by 38 percent to 18,388. As of 2024, the number of clients reached 27,643, marking a 50 percent rise in just three years. The financial impact of this program has also escalated dramatically. In 2017, Veterans Affairs spent $50 million annually on cannabis reimbursements. By 2024, that figure had ballooned to $245 million, a nearly five-fold increase. The amount of cannabis distributed to veterans also rose significantly, from over 24 million grams in 2023 to more than 30 million grams in 2024, an increase of about 6,000 kilograms. Despite the growing use of cannabis among veterans, an internal report from Veterans Affairs noted a lack of scientific evidence supporting its health benefits. The report stated, "cannabis is authorized for a variety of medical conditions; however, scientific evidence substantiating the efficacy and safety of cannabis is lacking." The 2025 budget does not propose reducing the amount of cannabis distributed to veterans. Instead, it adjusts the reimbursement rate from $8.50 per gram to $6 per gram, which is still above market prices. This change is expected to generate $4.4 billion in savings over four years, as the department anticipates continued growth in the number of cannabis program users. The budget adjustments reflect a broader effort to manage the increasing costs associated with the cannabis program while maintaining support for veterans' needs.
Veterans Affairs Faces Major Budget Cuts Amid Cannabis Spending
Canada News2 hrs ago
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