Ottawa confirms funding for rare disease research as other questions remain

The federal government confirmed at a meeting of Canadian health ministers that it is extending a funding deal on rare disease research, while wider questions on health-care funding remain unanswered.

Federal Health Minister Marjorie Michel told her provincial and territorial counterparts at the meeting in Winnipeg that the $500 million in annual funding for the National Strategy for Drugs for Rare Diseases that was set to expire next year will now be funded on an ongoing basis. 

The minister said she also reached an agreement on next steps in talks to deal with other funding issues, which includes more meetings ahead.

"The decision we all agreed on is to have our public service ... start the work on what will be the next step for the next negotiation on Canada Health Transfers and other agreements."

Michel confirmed late Wednesday that the federal government would extend by one year $1.2 billion in annual funding for mental health, addictions and home care that had been set to expire next March.

She said Friday that the one-year extension on funding was to help bridge provinces to the new fall federal budget schedule. 

Manitoba Health Minister Uzoma Asagwara, who co-chaired Friday's meeting, said that while there was much that remains to be negotiated, it's good that the federal minister is listening.

Asagwara said that provincial and territorial ministers will be working hard to make sure the next meeting, set to happen before the end of the year, can bring clarity.

"We will absolutely keep the pressure on."

This report by The Canadian Press was first published Oct. 16, 2026.

By Ian Bickis | Copyright 2026, The Canadian Press. All rights reserved.