Budget 2025 builds for tomorrow but lacks support for a mentally healthy workforce today

Nov 4, 2025

The Canadian Mental Health Association (CMHA) welcomes the federal government’s attention to affordable housing in Budget 2025, recognizing that safe, stable housing is one of the most powerful determinants of good mental health and a key response to addressing the needs of unhoused Canadians.

Budget 2025 reiterates previously announced investments of $13 billion to grow Canada’s non-market community housing stock through the new Build Canada Homes entity, which CMHA views as a positive step toward addressing the country’s affordable housing crisis, including:

• Providing $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness  
• Protecting existing affordable housing by launching the $1.5 billion Canada Rental Protection Fund 

Details about funding opportunities and timelines will be released by Build Canada Homes in the coming weeks. CMHA echoes the National Housing Council’s “Measuring What Matter’s” report to ensure the government adopts outcome-oriented targets including establishing clear timelines and targets to end homelessness and reduce core housing need.

“As a significant provider of supportive and transitional housing for people with mental health and substance use health challenges, CMHA is encouraged by the prospect of affordable housing for the people we support,” said Marion Cooper, CMHA National President and Lead Executive Officer. “Housing isn’t just a roof over someone’s head; it’s the foundation for recovery, stability, and dignity. These investments demonstrate long-term vision, not only to improve health outcomes for individuals with complex needs, but by also reducing costs to the justice, emergency, and shelter systems.”

Supportive housing requires sustained operational funding to cover the social and health services that keep people housed and well. Yet, too often, governments fund the bricks and mortar but not the ongoing supports, without which the system simply doesn’t work. As Canada faces rising rates of homelessness, housing insecurity, and unmet mental health needs, CMHA is looking to ensure the government embeds community partnerships into its housing strategy and to ensure operational dollars accompany new capital investments.

Federal mental health spending facing a fiscal cliff

At a time when Canadians are experiencing heightened stress and anxiety due to economic uncertainty and the rising cost of living, CMHA is deeply concerned by the lack of immediate supports to our community mental health and substance use health system.

Federal mental health spending under bilateral agreements from 2017, which earmarked $5 billion for mental health and substance use health care, is set to expire next fiscal year. This budget is missing a clear federal plan to extend or replace this funding, without which community providers risk ending or scaling back services.

The bilateral agreements offered critical funding predictability that enabled community mental health services to meet growing need. The absence of a plan or funding boost now creates uncertainty at a time when stability is most needed. Mental health care is a shared federal, provincial and territorial responsibility and one that directly supports Canada’s economy.

“A healthy workforce is a productive workforce. With most mental health care not publicly covered, people rely on their limited workplace benefits, pay out of pocket, or turn to community providers like CMHA,” said Cooper. “But as providers face funding pressures and are forced to reduce services, and job losses strip people of both income and access to extended health benefits, Canadians will face longer waitlists or simply go without the support they need to stay well and remain in the workforce.”

CMHA urges the federal government to work with provinces and territories to invest in our workforce by creating a long-term funding framework that protects and expands access to community mental health and addictions care. Without sustained investment, people will continue to fall through the cracks— and our communities will bear the consequences.

About the Canadian Mental Health Association

Founded in 1918, the Canadian Mental Health Association (CMHA) is the most established, most extensive community mental health federation in Canada. Through a presence in more than 330 communities across every province and the Yukon, CMHA provides advocacy, programs and resources that help to prevent mental health problems and illnesses, support recovery and resilience, and enable all Canadians to flourish and thrive. For more information, please visit www.cmha.ca

For media inquiries:
Emma Higgins
National Communications Manager
Canadian Mental Health Association
ehiggins@cmha.ca