Reduced Canada Health Transfer growth rate would see health care funding drop by billions 

Silas: A reduction in federal funding will hurt access to care for everyone in Canada. 

July 23, 2026 (Charlottetown, PEI) – Looming changes to the Canada Health Transfer will result in billions of dollars less in health care funding for provinces and territories, as reported in a new white paper published by the Canadian Federation of Nurses Unions (CFNU). 

The Harsh Reality of a Reduced CHT Growth Rate outlines the impact of the CHT growth escalator reverting to a three-year moving average of nominal GDP growth with a 3% floor in 2028-2029. The federal government projects that nominal GDP growth will be about 3.8% per year from 2028-2029 to 2030-2031. 

Analysis found that with an average growth rate of 3.8% annually, the cumulative CHT will be $51.8 billion less over 10 years than if the escalator remained at 5% annual growth. 

“Reverting the CHT growth rate will create a drastic reduction in public health care funding, and it is patients, nurses and health care professionals who will bear the weight of this austerity measure. There is no way around it – simply put, a reduction in federal funding will hurt access to care for everyone in Canada,” explained Linda Silas, president of the CFNU. 

At the same time, key health care agreements are facing federal funding cliffs. $1.2 billion in federal funding for home and community care and mental health and addictions services are set to expire next March. Another $600 million per year in federal long-term care funding expires the following year. There are no current plans to continue this funding. 

Silas emphasized that reduced federal funding would create a deeper health care crisis, pointing to the ongoing shortage of nurses, primary care providers and health care professionals across the country. 

“Cuts to public health care funding are short-sighted and come with the added risk of making privatization schemes even more appealing to provinces and territories,” said Silas. “We know that public health care creates strong value for our economy and at the same time delivers better patient outcomes and better access to care than for-profit services. Now is the time to invest in Canada’s public health care system, not undermine it.” 

 The CFNU is pushing for three key recommendations from the white paper: 

1. That the Prime Minister’s Office consult with health care stakeholders to prepare for a First Ministers’ Meeting on the future demands of Canada’s health care system.
2. That the Prime Minister convene a First Ministers’ Meeting on health care in 2026, which would include provincial and territorial premiers and Indigenous leaders, to address the future of the Canada Health Transfer escalator, among other items.
3. These pan-Canadian discussions should focus on whether the CHT continue growing by at least 5% annually after 2027-2028, or Canada move toward restoring the previous 6% escalator, to ensure federal health funding keeps pace with long-term pressures facing provincial and territorial health systems. 

An early copy of this white paper was presented to attending Premiers at a meeting with the CFNU during the Council of the Federation. 

The white paper was written by Andrew Longhurst, Senior Researcher and Political Economist at the Canadian Centre for Policy Alternatives, and Nate Little, Government and External Relations Officer at the CFNU. 

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The CFNU is Canada’s largest nurses’ organization, representing 250,000 frontline unionized nurses and nursing students in every sector of health care – from home care and LTC to community and acute care – and advocating on key priorities to strengthen public health care across the country. 

For more information, please contact Adella Khan, media@nursesunions.ca, 613‑807‑2942.