In addition to the ongoing funding provided to provinces and territories through the Canada Health Transfer, the federal government has indicated that it will provide an additional $3 billion over four years for specific needs such as homecare and mental health. The new funding will be governed by agreements it intends to negotiate with each provincial and territorial government. Drawing on his forthcoming IRPP Insight, Gregory Marchildon discusses the advantages and disadvantages of such bilateral agreements, as well as their fiscal and political feasibility.