The Canadian government's latest budget has revealed that a significant portion of federal spending reductions will come from an unexpected source: cutting back on marijuana reimbursements for military veterans and former RCMP officers.
Veterans Affairs Faces Major Budget Reductions
According to the 2025 federal budget, Veterans Affairs Canada must achieve $4.23 billion in savings targets over the next four years. In raw numbers, this represents one of the largest budget reductions across all federal departments, sparking concerns about support for veterans during a period of planned military expansion.
The only department facing larger cuts is Housing, Infrastructure and Communities, which must reduce spending by $5.4 billion over five years. However, those reductions partly reflect program transfers to other departments, unlike the Veterans Affairs cuts.
Cannabis Program Costs Skyrocket
Veterans Affairs officials explain that nearly all the savings will come from reforming a little-known program that provides government-funded cannabis to qualifying veterans. The program, which began in 2008, supplies medical marijuana to veterans and former Mounties who obtain a doctor's prescription.
What started as a small initiative serving just 37 clients in 2011 has exploded into a massive program covering thousands of beneficiaries. The department paid only $103,424 for cannabis in 2011, but costs have multiplied nearly five-fold since 2017.
Exponential Growth in Program Usage
The program's expansion accelerated dramatically following Canada's legalization of recreational marijuana in 2018. By 2019, the number of cannabis clients had grown to 13,270 veterans. This figure jumped 38% to 18,388 by 2021, and reached 27,643 clients by 2024.
Current spending on cannabis reimbursements has reached $245 million annually, compared to just $50 million in 2017. The program now covers approximately 30 tonnes of cannabis each year for qualified veterans and former RCMP members.
Despite the significant budget reductions, Veterans Affairs Canada maintains that the suite of benefits and services provided to veterans remains unchanged. The department emphasizes that the savings will be achieved through program adjustments rather than benefit eliminations.
