The federal budget says the fund will complement existing health-related support provided to provinces and territories by helping to ensure their health infrastructure, such as emergency rooms, will be able to respond to Canadians' health care needs.Tijana Martin/The Globe and Mail
The newly tabled federal budget contains a suite of health spending measures, including a proposal that allocates $5-billion over three years for a dedicated Health Infrastructure Fund.
The fund, which would begin operating in 2026-27 if the fiscal blueprint passes in the House of Commons, is part of a funding stream for provincial and territorial infrastructure projects.
“This fund will complement existing health-related support provided to provinces and territories by helping to ensure their health infrastructure, such as hospitals, emergency rooms, urgent care centres, and medical schools, will be able to respond to the health care needs of Canadians,” the budget said.
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The fund is being proposed at a time when Canada’s health infrastructure is facing criticism by multiple organizations who are concerned that many buildings across the country are outdated, are not environmentally sound and are in danger of damage related to the effects of climate change.
The budget includes several measures to reduce spending, such as plans to adjust medical cannabis benefits for RCMP members and veterans to save $4.4-billion. Currently, the government said, medical cannabis is reimbursed at about $8.50 a gram, which is significantly above market value. It plans to reduce that rate to $6 a gram.
François-Philippe Champagne’s inaugural budget as Finance Minister also places an emphasis on recruiting international talent, including a targeted effort to attract more than 1,000 qualified researchers to Canada.
“The expertise of these researchers will help advance our global competitiveness and contribute to the economy of the future,” the document said.
The budget proposes $1-billion over 13 years, beginning in 2025-26, to launch a research chair initiative to recruit international researchers to Canadian universities. It is earmarked for the Natural Sciences and Engineering Research Council, Social Sciences and Humanities Research Council and the Canadian Institutes of Health Research.
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In addition, it pitches $133.6-million over three years, beginning in 2026-27, to the same three bodies to “enable top international doctoral students and post-doctoral fellows to relocate to Canada.”
It also proposes $120-million over 12 years, beginning in 2026-27, for recruitment efforts at universities for international assistant professors. The government said additional details on the recruitment process will be announced in the coming weeks.
The Canadian Medical Association said in a Tuesday evening statement that the federal government listened to health care providers and patients by increasing budget spending, including for health infrastructure such as hospitals and medical clinics.
“Canada’s health care facilities are among the oldest public infrastructures in use today: almost 50 per cent of health care facilities were built over 50 years ago,” said CMA president Margot Burnell.
“The infrastructure funding announced today is a step in the right direction to creating new health facilities and fixing up the aging hospitals and clinics that Canadians depend on.”
Dr. Burnell also said Canada needs to train more health care professionals to staff those hospitals and clinics, including international graduates.
The budget said the Canada Health Transfer, which sees Ottawa provide funding to the provinces and territories for the rollout of health care services, is projected to increase from $54.7-billion in 2025-26 to $65-billion in 2029-30. Afterward, it said, the transfer is to grow in line with a three-year moving average of nominal GDP growth and funding will increase by at least 3 per cent a year.
Additionally, the government said, it intends to launch a faster way for those who hold H-1B visas to receive work permits, in order to strengthen Canadian innovation, address labour shortages and attract top talent in health care, research and other sectors.
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Under a former government policy, successful H-1B visa applicants could receive an open work permit for up to a three-year period. Ottawa ended this initiative in July, 2023, after it reached the maximum number of applicants (10,000).
In September, U.S. President Donald Trump signed a proclamation to require companies to pay a fee of US$100,000 for each H-1B visa.
The White House has accused businesses of hiring foreign workers over Americans because they can pay them less. Companies, including those in the tech sector, rely on the permit to hire foreign workers in specialty occupations.
After Mr. Trump’s announcement, experts and stakeholders warned the fee could shut out some workers in the U.S. market and spark global competition for talent. They said for Canada to be well positioned to compete, it should ensure a smooth immigration process for workers.
Benjamin Bergen, president of the Council of Canadian Innovators, said in September that anything that makes it more challenging for highly skilled workers to go to the U.S. meant an opportunity not only for Canada but other countries as well.