New Brunswick Budget: Big Deficit, Modest Health Increases, and a Focus on Primary Care

March 18, 2025 – The New Brunswick government has tabled a $14.3 billion operating budget that includes $293 million in increased health care spending. At the same time, the province’s finance minister issued a warning that departments will be tasked with finding saving in the future to help tame the province’s $549 million deficit.

Primary Care a Primary Focus

In his budget speech, Finance and Treasury Board Minister René Legacy said that health care was a top priority for New Brunswickers during budget consultations. In response, the first operating budget from Premier Susan Holt’s majority Liberal government includes key investments focused on primary care expansion – a major plank in their Fall 2024 election platform.

The budget earmarks $30 million to support team-based primary care toward the election commitment of establishing 30 local family health teams over four years. The government also reaffirmed its commitment to establishing 10 teams this year. Physicians will also receive $15.9 million to maintain their community-based practices. 

Minister Legacy told the provincial legislature, sitting for the first time this year, that investing in primary care will be cheaper that investing relying on acute care, reduce emergency department reliance in the long term while meeting the needs expressed by New Brunswickers for quicker appointments and access to care. 

The budget also included funding toward improving the fragmented network of health care information systems in the province, aimed at making it easier for clinicians to access patient records. This includes investing $28.4 million to modernize systems, with $19.4 million for the ongoing clinical information system transformation project.

Targeted Health Spending Increases

While health care spending is a key feature of the budget, the increases amount to 1.87% year over year compared to the final 24/25 estimates, and 7.7% growth compared to the original 2024-25 budget estimates.

Smaller health care investments announced in the budget show precision efforts to improve access to care for specific underserved areas. To that end, the budget notes a $1.9 million increase to fertility treatments including funding one round of in vitro fertilization per household, a meaningful step toward increasing fertility coverage in the province. The investment improves on the special assistance fund, which covered up to half of the incurred costs of treatment to a maximum of $5,000. 

The budget also includes a $462,000 plan to modernize cervical cancer screening by implementing HPV testing, noting that many of these cancers can be detected earlier.

Finally, the government is spending $150,000 to reduce barriers to training and certification for midwives, an effort to expand the profession in the province. 

Care for Aging Residents Gets a Boost

Seniors care, noted separately from health, also includes significantly increased spending to improve access to both long-term care and at-home care. This includes $22 million to expand nursing home spaces and $10 million to make home care more affordable.

The government will also spend $2 million to implement a dementia strategy and action plan, $1.5 million to continue implementing the five-year Aging with Dignity action plan as part of a bilateral agreement with the federal government and expand the respiratory syncytial virus (RSV) immunization program, making free vaccines available to New Brunswickers aged 75 and older.

Investments in Education and Housing

In addition to direct health care spending, the budget focus on improved education and housing support demonstrates a commitment to factors influencing health and well-being. 

Education and childcare investments include:

• $200 million over five years as part of a larger program to subsidize more than 17,000 child-care spaces 
• Additional $32.4 million for educational assistants and behavioural intervention mentors 
• $19 million increase for a school lunch program 
• $10 million to support children and youth with exceptional needs and trauma 
• Nearly $8.7 million to support early detection and intervention in matters where the well-being of children or youth may be at risk 
• An increase of nearly $16.4 million for more teachers 
• $4 million to increase teacher recruitment and retention and address the shortage of teachers 
• An increase of just over $2.1 million for academic support teachers

Housing investments:

The government announced an increase of $36.6 million in the New Brunswick Housing Corporation, which will include:

• An increase of nearly $21.1 million for the direct-to-tenant rental benefit, supporting an additional 2,500 households per year 
• An additional $4.6 million for the Affordable Rental Housing Program 
• Nearly $3.3 million in public housing to support necessary repairs modernization and improvement projects 
• A further $2.3 million to support the 3% rent cap and create an outreach and awareness program for tenants and landlords

Tariff Support

In addition to the deficit, the budget makes provisions to prepare for additional tariff pressure from the United States and global uncertainty. Like other provinces, it has allocated a $50 million contingency fund to be used to support the province in the case of more economic pressure, which complements a $112 million relief package that was previously announced.

Departments Asked to Find Savings for Future

While the 2025-26 budget includes increased spending to tackle some tough issues in health, housing, and education, Minister Legacy said spending growth cannot continue at this rate. He said each department is tasked with finding savings for the future, through a coordinated transformation table and plans will be developed by each department to do things differently. No exemption was given for health care. 

Still, deficit budgets can be expected for each of the next four years according to the province’s projections, despite Premier Holt’s fall campaign promise to bring balanced budgets each year.