Madam Chair, members, I'm pleased to join you today to discuss the supplementary estimates (B) for Veterans Affairs Canada.
Since my last visit to the committee, I've had the privilege of participating in commemorative ceremonies and events across Canada, before, during and following Veterans Week and Remembrance Day. Each experience was a powerful testament to the strength and sacrifices of our veterans, broadening my perspectives and filling me with an even greater sense of respect and reverence. Canada owes a debt of gratitude to all those who have worn and wear the uniform. The Government of Canada remains steadfast in its responsibility to deliver the care, benefits and recognition that our veterans and their families deserve.
Through these supplementary estimates, you will see that expenditures for Veterans Affairs Canada will increase by $14.2 million over the forecasted amounts. I would also like to speak to items in budget 2025 that directly relate to Veterans Affairs Canada and veterans. Through this budget, we are delivering on our commitment to Canadians when they elected this government: spending less on government operations so we can invest more in Canadians, including our country's veterans.
We are taking concrete steps to ensure that veterans receive the compassionate, timely support they deserve. With budget 2025, our new government is investing $184.9 million over four years, starting in 2026-27, and $40.1 million ongoing to stabilize the disability benefits service delivery system. This investment includes $24 million, over two years, to modernize IT infrastructure and operational processes to manage increasing demand. Budget 2025 reflects the government's firm commitment to providing veterans with responsive and accessible benefits in a timely manner, backed by permanent funding in the years ahead.
Additionally, the budget aligns the reimbursement rate under the cannabis for medical purposes program with current market prices. To be clear, we are protecting access to medically authorized cannabis for those who are qualified to claim it. The adjustment does not impact veterans' authorization for reimbursement, eligibility for the benefit or the daily gram limit. On a cash basis, the adjustment will save $127 million annually. In line with public sector accounting practices, future savings must be recognized immediately with changes to the benefits that impact long-term liabilities owed by the federal government. As such, budget 2025 accounts for $4.23 billion in savings, the long-term impact of the reimbursement rate change. With the adjustment to the reimbursement rate of the cannabis for medical purposes benefit from $8.50 to six dollars per gram, the actual impact to Veterans Affairs Canada's annual budget remains less than 2% on a cash basis. Veterans can and should be assured that no reductions to any other service, benefit or program are included in these savings.
I would also like to address the proposed amendments to the Pension Act, the veterans well-being regulations, the Department of Veterans Affairs Act and the veterans health care regulations, which are included in Bill C-15, the budget implementation act. The amendments to the Pension Act will clarify that “province” does not include Yukon, the Northwest Territories or Nunavut for an annual adjustment method for disability pensions and related benefits.
The BIA is also updating the rules to make it clearer how annual adjustments are calculated for the former earnings loss benefit. Additionally, it clarifies how the maximum monthly charge for accommodation and meals is calculated in the long-term care program. Taken together, these updates make the calculation methods easier to understand and remove any confusion about how they should be interpreted. Overall, they will offer veterans more clarity and transparency. These updates do not change how benefits have been calculated in the past, nor will they have a retroactive approach for the reimbursements that have been paid.
We are updating definitions in the legislation to reflect Veterans Affairs Canada's practices. Canadian Armed Forces members, CAF veterans and their survivors will continue to receive the same benefits they are currently receiving. The same formulas will continue to be used when calculating these benefits.
Under the Pension Act, CAF veteran pension increases will continue to be calculated as they have been, using the higher of the consumer price index or the wage rate increase. This is exactly as it was prior to the introduction of the budget implementation act.
Finally, Madam Chair, I will add one last update. I am pleased to share with the committee that, effective immediately, a diagnosis of Gulf War illness will be accepted as part of a disability benefits application. While Veterans Affairs Canada has always accepted claims from veterans for illnesses and conditions related to their service in the Gulf region, the recognition of Gulf War illness was only recently added to the international classification of diseases, which provides some guidance used to inform decision-making.
Over the last months, I've had the honour of speaking with Harold Davis and Mike McGlennon, respectively president and vice-president of the Persian Gulf Veterans of Canada, as well as colleagues from the House and the Senate. I would like to thank them all for their strong advocacy.
I encourage any veteran who has a diagnosis of Gulf War illness or related conditions to reach out to Veterans Affairs Canada if they believe they have conditions that were not previously recognized.
Colleagues, thank you, and I'm happy to take your questions.
