REGINA – Saskatchewan’s government has cancelled funding to a Saskatoon-based harm reduction organization that’s facing financial turmoil and a temporary shutdown of its supervised drug consumption site.
A spokesperson with the province said Monday it’s no longer providing more than $2.5 million in annual payments to Prairie Harm Reduction due to governance issues at the organization.
It comes after Health Canada suspended Prairie Harm Reduction’s exemption to operate the consumption site.
“They have some work to do with the governors that they have going on there,” Mental Health and Addictions Minister Lori Carr told reporters. “In the meantime, we will work with existing community-based organizations to try and ensure that nobody falls through the gap.”
Last week, Prairie Harm Reduction said it’s struggling with finance issues that resulted in a major deficit. It said it spent more money than it should have to deal with growing demand. It has also fired its executive director.
Health Canada said it informed the organization last week that its ability to operate the site had been suspended.
“In order to meet the public health and public safety objectives under the (Controlled Drugs and Substances Act), exemption holders must demonstrate that they have resources available to support the safe and ongoing operation of a supervised consumption site, including adequate funding and organizational capacity,” it said in a statement Monday.
Prairie Harm Reduction said on social media Monday the temporary closure is unfortunate but not unexpected.
It said Health Canada closely monitors consumption sites and that it’s working to provide the requested information to lift the suspension.
”(Prairie Harm Reduction) respects and fully supports Health Canada’s regulatory role and remains committed to meeting and exceeding Health Canada’s requirements,” it said.
It added that the drop-in centre, which is attached to the consumption site but separated by a wall, remains open.
The province had funded various programs at Prairie Harm Reduction, including outreach, naloxone distribution, and child and family housing. It also provided a drug-testing device that it says will now need to be used elsewhere.
The spokesperson said the province is in discussions with another provider to take over Prairie Harm Reduction’s housing program.
The province has never provided dollars to the safe consumption site.
“We never did believe that there was any safe use of illicit drugs,” Carr said.
Prairie Harm Reduction has said it’s seeking urgent financial aid to continue operating all of its services and that work on the financial review continues.
“We anticipate receiving a more detailed preliminary report from our external financial experts in early April,” it said.
The organization has also hired a specialist to oversee day-to-day operations and support the board and staff.
This report by The Canadian Press was first published March 30, 2026.
