Ottawa - The federal government is reversing a decision to reject compensation for dozens of Canadians affected by the spraying of Agent Orange.

The Canadian Press has learned approximately 30 people will now receive payments under the program, which is meant to compensate soldiers and their families exposed to the defoliant in the 1960s who later became ill.

A number of families had gone public in recent weeks with their bureaucratic battles over the funds and the Veterans Ombudsman publicly rebuked the government for its handling of the file.

Government sources say the number of complaints they've received led to a review of the rules for what one admitted was a "less than perfect" program.

Those people who are eligible for a payment but filed an application past the June 30, 2011 deadline will now receive funds.

The government is also loosening its application of rules on compensation for primary caregivers.

In one case, a widow was denied payment because her husband died in a nursing home and the couple of 50 years was technically not living together.

She and others like her will now receive funds, government officials said.

They will be informed via a letter in the coming days.

MPs representing constituents affected by the rejection claims had also been raising concerns with Veterans Affairs Minister Steven Blaney, his spokeswoman said.

"As a result, Minister Blaney has instructed officials to review certain cases with more compassion," Codie Taylor said in an e-mail.

"This is just another way our government is standing up for Canadians."

The toxic herbicide was sprayed at CFB Gagetown in 1966 and 1967 by the U.S.-military, with permission from Canada.

It's now known that exposure can lead to skin disorders, liver problems and certain types of cancers.

The federal government first announced a compensation program for soldiers in 2007 and extended the deadline twice.

Originally, the program had a controversial condition that required people to be alive on Feb. 6, 2006 -- the date the federal Conservatives came to power.

That provision was later removed, which allowed spouses to make a claim.

A total of $114.5 million was earmarked, with the bulk used for payments of $20,000 apiece.

Government officials say there will be very little money left in the fund once the program expires Friday.

The program was extended in 2010 in part because an estimated $24 million had yet to be spent.