The federal government is not reimbursing the costs of policing demonstrations related to the Israel-Palestinian conflict in Ottawa, leaving a multi-million-dollar hole in the police budget, according to the Ottawa Police Service. A report for the Ottawa Police Service’s Finance and Audit Committee shows the service ran a $28.9 million budget deficit in 2025, including a $6.5 million shortfall in funding from the federal government to cover policing costs for demonstrations related to the Israel-Palestinian conflict. The federal government has established a Nation’s Capital Extraordinary Policing Costs Program for the Ottawa Police Service, which is intended to reimburse the city for “eligible extraordinary, reasonable and justifiable policing costs incurred in relation to policing duties specific to the nation’s capital,” according to the government. Staff say Public Safety Canada advised the Ottawa Police Service in 2025, “They would not be reimbursing the OPS for the supplemental funding request for costs associated with demonstrations tied to the Israel and Palestine conflict.” The report says the $6.5 million shortfall is the “cumulative amount that has been incurred and not reimbursed since the beginning” of the Israel-Palestinian conflict. “In 2025, initial discussions were held with Public Safety Canada regarding negotiating the next 5-year agreement for the National Capital Extraordinary Policing Cost program,” staff said. “Negotiations are expected to recommence after the Federal fiscal year end of March 31st.” The 2024 federal budget included $45 million in federal funding over five years for the Ottawa Police Service to establish a Parliamentary Precinct District program, covering costs associated with policing the Parliamentary Precinct around Parliament Hill. $28.9 million budget deficit In addition to the federal funding shortfall, police racked up the multi-million-dollar budget deficit due to overtime, medical claims and a new contract for officers. Staff say the Ottawa Police Service ran an $11.2 million deficit in the overtime budget, a $7.5 million shortfall due to pressures from a new collective agreement for officers and a $3 million shortfall due to Workplace Safety and Insurance Board medical claims. “In recognition of year-to-date risks and pressures, in June 2025, the OPS implemented cost-containment measures with the intent to mitigate the forecasted deficit,” staff said. “The OPS imposed a discretionary spending freeze, implemented safeguards to preserve vacancy savings along with other proactive measures to mitigate further financial strain.” Overtime costs The $11.2 million cost overrun in the overtime budget includes officer costs to maintain minimum staff levels, according to the report. Staff say $2.8 million of the $11.2 million overtime deficit was to “meet the needs of the community, most notably maintaining minimum staff levels on the frontline.” Other overtime costs included $2.6 million for court security and $2.5 million due to staffing shortages in the Communications Centre. The report notes the Ottawa Police Service has implemented a 10 per cent minimum overtime reduction target for 2026 to address overtime pressures.
