The federal Liberals’ move to retroactively alter a law to adjust long-term care costs for veterans has sparked backlash from the Conservatives. Some lawyers suggest this amendment is an attempt to evade compensating veterans for possible overcharges resulting from a federal error.
The amendment in the Carney government’s budget implementation act aims to “clarify” the calculation formula for long-term care expenses for veterans. Lawyers involved in a potential class action argue that veterans have been unfairly charged due to a historical miscalculation by the federal government.
If approved, the retroactive amendment could potentially halt ongoing litigation seeking to repay affected veterans and their families.
Conservative veterans affairs critic Blake Richards criticized the government for what he perceives as a clandestine attempt to rectify a mistake without proper acknowledgment. He highlighted the buried nature of the amendment in the budget implementation act.
In a report from October 2024, CBC News revealed that the federal government likely misinterpreted its own law regarding veterans’ long-term care costs. The error, known internally but unaddressed, led to veterans possibly being overcharged for their care.
The federal government is looking to redefine “province” in the law to exclude territories retroactively. This change could institutionalize the previous misinterpretation, as per lawyers representing veterans in the class-action lawsuit.
The budget bill containing the amendment must navigate through a minority Parliament before enactment. Richards expressed willingness to amend the bill to eliminate the contentious section, emphasizing the importance of protecting veterans’ interests.
A spokesperson for Finance Minister François-Philippe Champagne defended the amendments, stating they aim to clarify benefit calculation methodologies. The spokesperson asserted the government’s right to make such adjustments, citing a legislative intent to apply the law retroactively in certain circumstances.

