Annual Report to Parliament 2022

(a) Child and Family Services Coordination Agreements for Indigenous Laws

An Act Respecting First Nations, Inuit, and Métis children, youth and families, which came into force January 1st, 2020, affirms the rights of First Nations, Inuit, and Métis Peoples to exercise jurisdiction over Child and Family Services, and provides an opportunity for Indigenous Peoples to choose their own approaches and potential solutions for the issues experienced by their children and families as a result of colonialism and continued systemic discrimination.

The implementation of the Act is based on the conclusion of coordination agreements with Indigenous governing bodies. Coordination agreement discussions provide an opportunity for the Indigenous governing body to work with the relevant provincial and federal governments to achieve the coordination of emergency services, support measures, and other processes to help ensure a smooth and effective transition. These discussions also provide an opportunity to establish fiscal arrangements between the parties.

The Act^{Footnote 7} provides a means for Indigenous laws regarding Child and Family Services to acquire the force of federal law. With federal force, an Indigenous law would prevail over the laws of that province or territory, and most federal laws, if there is a conflict between laws.

As of July 5, 2022, there have been two coordination agreements signed and there are currently seventeen discussions underway in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, the North-West Territories, and the Yukon.

Bilateral distinctions-based approaches to implementing the Act are also being co-developed through bilateral mechanisms with Indigenous national organizations, including a joint Memorandum of Understanding with the Assembly of First Nations; a strategic work plan with Inuit Tapiriit Kanatami; and through a memorandum of understanding with the Métis National Council^{Footnote 8}.

Budget 2022 provided funding to support the Act's implementation:

• $340.8 million over ten years, starting in 2021-22, to support Wabaseemoong Independent Nations' exercise of jurisdiction; and,
• $87.3 million over three years, starting in 2022-23, to enable Indigenous governing bodies to continue to work with the federal government and the provinces and territories to support the implementation of Indigenous child welfare laws.

At the same time, work is continuing to settle litigation, provide compensation and advance long-term reform of the child and family services existing program, which will support all First Nations including those who are not yet ready to assume jurisdiction under the Act. On December 31, 2021, Canada signed two agreements in principle, one with the Assembly of First Nations, the First Nations Child and Family Caring Society, the Chiefs of Ontario and the Nishnawbe Aski-Nation for a long-term reform of the First Nations Child and Family Services Program. A second agreement was reached with the Assembly of First Nations and the lawyers representing the plaintiffs in the Moushoom and Trout class actions concerning compensation for those harmed by the discriminatory funding for First Nations Child and Family Services, and those affected by the federal government's narrow definition of Jordan's Principle's.

(b) Co-development of Distinctions-based Indigenous Health Legislation

Significant gaps in health outcomes persist between Indigenous and non-Indigenous peoples in Canada. First Nations, Inuit, and Métis still face significant burdens of chronic disease, lack of access to culturally relevant and quality healthcare, and a lack of sufficient resources to manage and deliver healthcare to their citizens. Overt and systemic racism, the ongoing impacts of colonialism, intergenerational trauma, a lack of cultural competency in the healthcare system, a lack of sufficient and sustainable funding for health care on-reserve, and inadequate access to health resources due to remote locations, continue to perpetuate health inequities.

Indigenous Services Canada, together with Health Canada, is taking action to address anti-Indigenous racism in Canada's health systems. An initial investment of $126.7 million over three years, starting in 2021-22, continues to support initiatives in four key streams: improving access to culturally safe services, adapting health systems, improving supports and accountability, and providing federal leadership. Every organization involved in the delivery of health services has a responsibility to make health systems safer for Indigenous people.

Addressing racism and discrimination in health systems can contribute to saving lives and preventing unnecessary deaths. This federal investment is one step toward improving the position of Indigenous partners to lead transformative projects with provinces and territories that measurably improve Indigenous people's experience of accessing health services.

First Nations-led health governance structures are assuming control of the design, administration, management, and delivery of federally administered health services and programs. Currently, there are five Health Transformation Agreements being developed, as well as five additional negotiations towards agreements underway.

Indigenous Services Canada also provides capacity funding to Indigenous health professionals organizations^{Footnote 9} to advance culturally-sensitive Indigenous health and wellness approaches. These investments are a starting point for further work with partners to develop a long-term comprehensive approach to addressing anti-Indigenous racism in health systems.

Since the fall of 2021, Indigenous Services Canada and its partners have been leading national, regional and local engagement sessions on the development of distinctions-based health legislation. The engagement sessions have been broken into a series of streams to ensure the approach is broad, comprehensive and as inclusive as possible.

To date, Indigenous partners have called for legislation to: address anti-Indigenous racism in health systems; respect Indigenous governments while supporting self-determination; ensure Indigenous world-views are included in its application; build trust and strengthen relationships; and recognize the Aboriginal and Treaty right to proper healthcare for Indigenous populations regardless of their place of residence.

As provinces and territories are primarily responsible for the delivery of healthcare, Indigenous Services Canada has begun initial discussions with provincial and territorial governments to share information and receive feedback on what they anticipate will be needed for this to be a meaningful process.

Indigenous Services Canada will continue to engage provinces and territories throughout the process of co-developing legislative options with First Nations, Inuit, and Métis partners, to support a concerted approach to improving access to high-quality and culturally safe and relevant health services, through health systems that are free of racism.

(c) First Nations Fiscal Management Act

To build safe, healthy, and prosperous communities, First Nations, Inuit, and Métis governments need access to the same financial tools and institutions that other levels of government in Canada have at their disposal. The First Nations Fiscal Management Act^{Footnote 10}, enacted in 2006, provides First Nations with the tools and authority over fiscal matters, including financial management, property taxation and local revenue generation through three key Indigenous-led institutions:

• the First Nations Financial Management Board;
• the First Nations Finance Authority; and
• the First Nations Tax Commission.

Indigenous Services Canada will continue to support new First Nations institutions as they emerge; for example, the department will continue to support the First Nations Infrastructure Institute in their ground-breaking work with Indigenous governing bodies and organizations in planning, procuring, owning, and managing infrastructure assets on their lands.

(d) First Nations Land Management

Land is one of the most valuable resources for First Nations as it frames their governance, socio-economic development, culture, and well-being. Ensuring First Nations have access to a viable land base and modern tools to manage their lands and natural resources is crucial to reconciliation, and instrumental in supporting self-determination and self-governance.

The Framework Agreement^{Footnote 11} on First Nation Land Management is a nation-to-nation agreement that Canada ratified in 1999 with the passage of the First Nations Land Management Act. There are 194 signatories to the Framework Agreement on First Nation Land Management, of which 100 are land code communities, with 61 First Nations active in the developmental stage^{Footnote 12} and 30 inactive, and 3 that have moved on to self-government agreements.

(e) Additions to Reserve

Accelerating the completion of additions to reserves enables First Nations to strengthen the social and economic well-being of their communities by improving access to lands and resources, encouraging investment and promoting economic development. Budget 2021 allocated $43M over four years to Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada, starting in 2021-22, to work with Indigenous partners and other stakeholders to redesign the federal Additions to Reserve policy and to accelerate work on existing requests from First Nations across the country.

As part of the work to redesign the additions to reserve policy, preliminary discussions are underway with Indigenous organizations and communities to shape the engagement approach and the co-development of policy options, ensuring that the needs and priorities of Indigenous partners are reflected.

The new funding will better support First Nations with the technical components of the additions to reserve process, and further build or enhance capacity within First Nations and Indigenous organizations to enable them to reclaim control of their lands and natural resources.

During the 2021-22 fiscal year, 40 additions to reserves, representing 8,190 acres of land and involving a total of 22 First Nations were approved. With more Budget 2021 Additions to Reserves resources available to the department starting in the 2022-23 fiscal year, Indigenous Services Canada will be in a better position to enhance capacity at both the departmental and First Nation levels and make targeted investments on various proposals to reduce the inventory of the more than 1300 active files.

Additionally, the department will continue to collaborate with the National Aboriginal Lands Managers Association and the Lands Advisory Board to modernize Indian Act land policies and reform the Indian Referendum Regulations to allow for electronic voting and greater First Nation control over the referendum process. There is also a plan to develop a new national additions to reserve tracking system where First Nations can submit and track their proposals via an online Cloud based system. These innovative and transformative changes will help increase the pace at which First Nations are able to access economic development opportunities through the additions to reserve process.

(f) First Nations Election Act

Developed in collaboration with the Atlantic Policy Congress of First Nations Chiefs and the Assembly of Manitoba Chiefs in 2015, the First Nations Election Act is a legislative tool that addresses limitations of the election process under the Indian Act. This optional legislation is part of Indigenous Services Canada's ongoing commitment to support stronger First Nations governments and put control back where it belongs, in the hands of community governments and peoples.

In 2021-2022, 5 First Nations (0.8%) opted into the Act, bringing the total to 80 communities (12.9%) that have chosen this path to build and strengthen First Nation governance autonomy and better address the needs of the community. To provide context, 136 communities (22%) continue to use the electoral system under the Indian Act, 366 communities (59.1%) use custom code election processes, and 39 communities (6.3%) have a self-governing agreement. The department continues to work with First Nation leadership to facilitate the transition away from a federally imposed governance system that does not take into account the culture and traditions of individual communities and nations.

(g) Indigenous-led Land Registry

The Indian Land Registry is based in Section 21 of the Indian Act. Until such time as the Act can be amended, the department is working with partners to transform the way this service is implemented.

This year, Indigenous Services Canada initiated a two-year pilot project with two Indigenous organizations in Ontario and Manitoba to train two Indigenous land registry officers in each province who will register land instruments in the Indian Land Registry System. The ultimate goal of this pilot project is to build land registry capacity within the partnering Indigenous organizations. This capacity building is a potential precursor for the transfer of land registry services to Indigenous control.

(a) New Fiscal Relationship for sustainable and predictable funding

Based on the recommendations put forth by an Assembly of First Nations and Indigenous Services Canada joint working group in a 2017 report A New Approach Forward: Co-Development of a New Fiscal Relationship Between Canada and First Nations, a 10-year-grant mechanism was developed and launched in 2019-2020. It provides long-term, predictable funding for eligible First Nations who choose to join. The 10-year grant allows First Nations to build capacity and effectively plan further into the future than ever before, enabling greater autonomy and self-determination for First Nations partners in service delivery. Participating First Nations have increased flexibility in their financial decision-making to respond more rapidly to emerging priorities and the unique needs of their communities. Budget 2021 investments included an escalator, so that communities under the grant will have sustained growth in funding that will better account for inflation and population increases on-reserve.

Over the 2021-2022 fiscal year, six^{Footnote 13} communities joined into the NFR Grant process^{Footnote 14}, bringing the total to 117 communities operating under the Grant. Indigenous Services Canada provides funding to interested First Nations through its Professional and Institutional Development program. Additionally, the First Nations Financial Management Board supports First Nations in joining the Grant. For the 2022-23 fiscal year, 38 First Nations expressed interest in joining the Grant, with 12 First Nations completing the eligibility process and accepting offers to move to Grant funding for April 2022.

The ongoing work between Canada and its partners within the New Fiscal Relationship and the lessons learned will help provide the structure for more flexible and stable funding arrangements needed for future transfer initiatives as well to help close the socio-economic gaps between First Nations and non-Indigenous Canadians.

(b) Land and Environmental Management Capacity Building

Indigenous Services Canada continues to support First Nations' capacity to exercise increased responsibility over their reserve land, resources and environment through the Reserve Lands and Environment Management Program. This program provides funding to First Nations to train and certify technical, skilled land managers through the Professional Land Management Certification Program and to offset costs for a land manager and related office administration. Participation in the program has facilitated partners' transition to increased levels of land governance autonomy. Management of the Certification Program and related land management services (i.e., surveys, land use planning) has transferred to the National Aboriginal Lands Managers Association.^{Footnote 15}

(c) Community capacity for cumulative effects assessment, monitoring and management

The Indigenous Centre for Cumulative Effects was co-developed with First Nations, Inuit, and Métis partners, and established as a not-for-profit institution in 2019. The Centre has a mandate to support the technical and scientific capacity of Indigenous partners to undertake cumulative effects, based on Indigenous values and knowledge systems. The Centre is an Indigenous-led organization, governed by a Board of Directors with regional, distinctions-based representation.

The Centre provides support to communities through a variety of tools and services, including:

• Through the establishment of its Community Funding Program, the Centre has provided direct funding to communities for 35 projects, for a total of $4.97 million dollars. Participants in the Community Funding Program also have access to guidance on their projects from a Technical Advisory Committee;
• Development of an inventory of cumulative effects experts and practitioners that communities can access;
• Development of guidance documents related to:
  • Cumulative effects requirements from legislation, regulations and policies in various jurisdictions across Canada (federal, provincial, territorial, Indigenous);
  • Indigenous community best practices for working with project proponents; and,
• Facilitation of culturally-relevant networking and information sharing opportunities, including through its annual Indigenous Conference on Cumulative Effects and regional workshops.

The Centre is currently conducting a national needs assessment to better understand and respond to community priorities and to identify potential training programs and additional tools that will enhance the capacity of Indigenous governing bodies to take on cumulative effects work. Additionally, it is actively establishing partnerships with other federal departments and Indigenous organizations, including an ongoing partnership with the Impact Assessment Agency and with Natural Resources Canada and Environment and Climate Change Canada on the development of a pilot project on Indigenous Knowledge in the context of the Government's Open Science Data Platform.

(a) Progress on Health Transformation

Since 2018, Indigenous Services Canada has engaged in collaborative discussions with First Nations partners, as well as provinces, to develop new First Nations-led health governance structures that will assume control of the design, administration, management, and delivery of federally administered health services and programs. Five Health Transformation projects^{Footnote 16} are currently underway, and engagement continues. All five projects are currently in the process of engagement, partnership development, and the design and development of new models of health service delivery that can be delivered by new Indigenous-led health governance structures.

In addition to these Health Transformation projects, in September 2021, an Indigenous Services Canada nursing station in Winneway, Quebec was transferred to First Nation control. The process included the transfer of service delivery as well as the station's material resources.

(b) Education Agreements and Post-Secondary Education

Access to quality elementary, secondary, and post-secondary education for First Nation students has and continues to be a top priority for Indigenous Services Canada and its partners. Steady progress is being made on developing Regional Education Agreements that support increased First Nation design and control of their education systems based in their pedagogies and priorities.

Elementary and secondary education funding is provided to First Nations communities or First Nation governing bodies for First Nations students ordinarily residing on-reserve.

Indigenous Services Canada continues to engage with National Indigenous Organizations, regional groups, Tribal Councils, and individual communities on moving toward transfer of education services. Activities in support of Indigenous control of Indigenous education and efforts towards transfer are ongoing.

Through the First Nations Post-Secondary Education Strategy, Indigenous Services Canada is committed to advancing forthcoming First Nations' regional post-secondary education models. These models are intended to enable First Nations to transition from the current suite of post-secondary programs to holistic approaches that are more responsive to First Nations' local priorities and needs.

In parallel to these First Nations-led engagement activities, First Nations developed the 2021 First Nations Post-Secondary Education Policy Proposal through the Assembly of First Nations, to support First Nations in implementing their vision of post-secondary education in their community, territory, and/or region.

To improve Indigenous students' access and to foster the success of First Nations, Inuit, and Métis students pursuing post-secondary education, Indigenous Services Canada launched distinctions-based Indigenous Post-Secondary Education Strategies in 2019-20^{Footnote 17}. These co-developed strategies aim to help close the post-secondary education attainment gaps between First Nation, Inuit, and Métis students and non-Indigenous Canadian students through distinctions-based and regionally delivered strategic supports.

(c) Transfer of Community Infrastructure

Indigenous Services Canada continues to work with First Nations partners on co-developing approaches to advance the transfer of community infrastructure services. Efforts are underway with regional First Nations partners to transfer housing and infrastructure service delivery to First Nations organizations. To date, 12 First Nations organizations have received funding and support to develop models for housing and infrastructure service delivery transfer, all of which have received a mandate from their leadership. Additionally, a Service Delivery Transfer Framework Agreement was signed with the First Nations Capital Infrastructure Agency of Saskatchewan in March 2021, and the final transfer is expected to be concluded in the next 2-4 years.

(d) Emergency Management

Community leaders are on the front lines of emergency response. In partnership with First Nations, provincial and territorial governments, and non-government organizations, Indigenous Services Canada's Emergency Management Assistance Program (EMAP) helps communities on reserve access emergency assistance services.

EMAP provides funding to First Nation governing bodies so they can build resiliency, prepare for natural hazards and respond to them using the 4 pillars of emergency management; mitigation, preparedness, response and recovery. The department has also worked to include health emergencies under the purview of EMAP, expanding the scope of emergency management services to provide a more holistic approach to communities, and is now taking even further steps to make the program more streamlined and accessible. This approach is based on lessons learned from the Indigenous Community Support Fund, which the department created to support management of the COVID-19 pandemic in Indigenous communities. Communities received funding with flexibility to manage it based on their own needs, as they were best placed to determine what was necessary for their communities.

Indigenous Services Canada is continuing to work with First Nation partners and provincial and territorial governments to develop new multilateral emergency management service agreements while also mobilizing engagement opportunities in all regions. The timeline varies for each transfer initiative as it is First Nations-led. Each service delivery transfer initiative is unique in addressing First Nations needs and priorities.

Negotiations continue towards a new tripartite emergency management agreement in British Columbia and further interest has been expressed in the Yukon, PEI, and Ontario.

In Ontario, Indigenous Services Canada is working on a Joint Command approach with Indigenous partners and the province. Using a "no wrong door approach", when an event occurs, a Joint Command Team of Canada, Ontario, and Indigenous Partners will be called to discuss the level of risk and make decisions on required supports and an action plan. This will ensure that no matter where a First Nation comes for support, support will be provided, and financial constraints will be negotiated afterward with the governments involved. The department will continue to improve emergency management systems, especially as emergencies become more frequent and intense due to the cumulative effects of climate change.

Increased funding has also been allocated to Indigenous-led organizations, recognizing the critical role they play in supporting communities in preparing for and managing emergency situations. For example, the First Nations' Emergency Services Society of British Columbia works closely with First Nations, Emergency Management BC, Indigenous Services Canada, the First Nations Health Authority, and various other stakeholders to build capacity and support the successful implementation of emergency management for First Nation communities in BC^{Footnote 18}.

(a) Self-determined services

As discussed in the previous chapter, services are most relevant and produce the best results when delivered by Indigenous governing bodies to Indigenous communities. This is exemplified in the above discussions on transfer of services of programs such as child and family services, infrastructure, and health. We have seen in these fields that when Indigenous partners have jurisdiction over their own services, and Indigenous Services Canada has transferred its responsibilities and resources to these partners, investments will have a much greater impact than they have had to date.

Understanding the gap:

Sources ranging from the National Indigenous Economic Development Board to the Fraser Institute (PDF) have signaled that targeted investments and changes to service delivery must take place to more rapidly close socio-economic gaps. The Fraser Institute notes in particular that a four-fold increase in investments between 1891 and 2016 has been insufficient to close the gap between Indigenous people and non-Indigenous Canadians despite the tremendous service delivery accomplishments of Indigenous partners.

The Government of Canada has been working closely with Indigenous partners to accelerate the pace of investment; the landmark settlement agreement in child and family services is indicative of major progress in securing investments sufficient to close fiscal gaps. However, we know much more work remains to close gaps in all service areas.

We also know that quantifying these gaps is a complex exercise and estimates vary. For example, the Assembly of First Nations estimated in its 2022-2023 pre-budget submission that $128 billion will be required over the next five years, including $44 billion in housing investments. Similarly, Inuit Tapiriit Kanatami has signaled $78 billion is required over 35 years for services in Inuit Nunangat, with a notable $75.1 billion in infrastructure investments.

Indigenous Services Canada will continue to work collaboratively with Indigenous partners to assess and quantify these gaps and secure strategic investments with partners to close them. Please see Chapter 3 for a more detailed discussion of how Indigenous Services Canada is working with Indigenous partners to improve gaps in data quality with which to obtain concrete figures on these investments.

(b) Developing a measurement strategy to properly quantify socio-economic and fiscal gaps

Indicators that are grounded only in a Western worldview are not sufficient to assess health inequalities and social determinants of health, as perspectives on health and health inequalities differ for Indigenous Peoples. For example, research from the National Collaborating Centre for Indigenous Health demonstrates that Indigenous traditional worldviews define health in a balanced, holistic way, using a tree metaphor to describe "how root (structural), core (systemic), and stem (immediate) environments influence Indigenous health at individual, community, and population levels"^{Footnote 21}. Thus, it is important to understand health inequalities for Indigenous Peoples through an Indigenous lens; using solely Western indicators, which can often be deficit-based, risks continuing negative stereotypes of Indigenous peoples, and may create more harm and reinforce discrimination. This disparity highlights the crucial need to co-develop approaches to improving health and quality of life for Indigenous peoples.

To this end, Indigenous Services Canada and the Assembly of First Nations have been working closely together since 2017 to develop the National Outcome-Based Framework. The National Outcome-Based Framework is intended to be a key component of a mutual accountability framework that measures progress in closing the socio-economic gaps between First Nations and non-Indigenous Canadians. The recommendation was built on the Truth and Reconciliation Call to Action #19 as well as recommendations from the Office of the Auditor General in 2018, and called for goals and targets that reflect and align to First Nations worldviews, with timelines that are mutually agreed upon between First Nations and Canada. As a first step, guiding principles were developed with the support of the Indigenous Services Canada—Assembly of First Nations Joint Advisory Committee on Fiscal Relations, which are outlined in the report Honouring our Ancestors by Trailblazing a Path to the Future.

With the support of the Joint Advisory Committee on Fiscal Relations, a three-pronged approach to engagement with First Nations on the proposed framework was developed:

• Stream 1 would leverage program work on indicators by meeting with Assembly of First Nations and federal government program officials;
• Stream 2 would engage with First Nations leaders and communities on potential themes, outcomes and indicators; and
• Stream 3 would engage individuals with technical expertise including First Nations community development officers/planners, academics and data experts, on First Nations data and measurement.

Work on the National Outcomes Based Framework continues, and Indigenous Services Canada is also engaging with National Indigenous Organizations to co-develop an update to the Departmental Results Framework.

(c) Maintaining momentum on increased federal

Since 2015, funding for Indigenous programming has increased. Budget 2021 proposed a historic investment of over $18 billion over five years to improve quality of life for Indigenous peoples in Canada and to close socio-economic gaps. Budget 2022 proposed an additional $11 billion over seven years to continue addressing key priorities such as housing, mental health services, child and family services long-term reform, and water and wastewater. These investments have made – and will continue to make – improvements in wellbeing. However, further investments will be needed to close gaps in future. For example, 706^{Footnote 22} beds for new long-term care home residents will be needed to close the long-term care infrastructure gap between Indigenous Peoples and non-Indigenous Canadians, as well as increased funding for ongoing maintenance/repairs to facilities and equipment.

(d) Advancing economic reconciliation

Addressing socio-economic gaps and advancing self-determination is closely linked to economic reconciliation. Following the release of Budget 2022, Assembly of First Nations National Chief RoseAnne Archibald called for "a new path forward…where First Nations can benefit from their lands and resources." Moreover, Indigenous Services Canada recognizes that Indigenous access to economic and fiscal resources is key to ensuring the long-term sustainability of efforts to close the gap and support the exercise of Indigenous jurisdiction over services.

The National Indigenous Economic Development Strategy^{Footnote 23}, developed by a coalition of more than 20 Indigenous Organizations, was released in June 2022. This is the first such strategy to be built and designed exclusively by Indigenous leaders, institutions, and organizations from across Canada. The strategy has four strategic pathways: People, Lands, Infrastructure and Finance, with 107 Calls to Economic Prosperity to guide Canadian society toward a more equitable and prosperous future. The Strategy notes that policy changes and investments to correct a history of excluding Indigenous Peoples from economic opportunity will benefit all Canadians, not just Indigenous Peoples.

According to the strategy, if access to education and training for Indigenous Peoples became equitable to non-Indigenous Peoples, the result would be an additional $8.5 billion in income earned annually by the Indigenous population. Further, the report states that closing the productivity gap between Indigenous and non-Indigenous Canadians would lead to an increase of $27.7 billion to Canada's gross domestic product (GDP) each year.

Indigenous-owned and controlled businesses support the growth of the Indigenous economy and communities. Strong Indigenous economies and full involvement of Indigenous individuals in the Canadian economy also contribute to a strong Canadian economy.

Indigenous Services Canada continues to work with Indigenous partners to foster the full economic participation of Indigenous communities and entrepreneurs and assist in their prosperity by creating jobs and growing businesses. The department supports improved access to capital for Indigenous communities and entrepreneurs while working to leverage public and private sector partnerships and investments.

The Aboriginal Entrepreneurship Program (AEP) continues to play an essential role in helping Indigenous entrepreneurs with small and medium-sized businesses to obtain accessible business capital. With an annual budget of $34 million, the program provides Indigenous entrepreneurs with equity (non-repayable contributions) and business support services so they can qualify for affordable loans. It also offsets costs for Indigenous lenders so they can remain viable. It is estimated that for every $1 lent to Indigenous entrepreneurs and businesses through the AEP, $3.60 was added to Canada's gross domestic product. This economic impact is attributed to job creation and increased wages brought on by the establishment and expansion of Indigenous businesses.

In 2015, the AEP program administration was transferred to the National Aboriginal Capital Corporations Association, and is now rapidly moving towards distinctions-based delivery. In 2019, five Métis Capital Corporations started to administer and deliver portions of the AEP. Over the next few years, Indigenous Services Canada will continue working with Indigenous partners to further advance a distinctions-based approach to service delivery, including with Inuit partners.

Indigenous Services Canada recognizes that the economic prosperity of Indigenous communities relies on the success of Indigenous women entrepreneurs and business owners as well. Indigenous women entrepreneurs continue to face challenges accessing financing. Community responsibilities, sexism, lack of support and training and barriers produced by the Indian Act continue to affect Indigenous women entrepreneurs. Recognizing that Indigenous women face additional gender barriers in entrepreneurship, Indigenous Services Canada has provided $22 million to the National Aboriginal Capital Corporations Association to help them launch the Indigenous Women's Entrepreneurship Initiative, a new program that helps build the capacity of Aboriginal Financial Institutions and develops tools, resources, and supports tailored specifically towards Indigenous women to build or grow their businesses. Indigenous Services Canada considers Gender-Based Analysis (GBA) Plus principles to be a core component of renewed, respectful, and inclusive pathways towards economic reconciliation, and continues to apply GBA Plus principles across its programs and initiatives.

(e) Continue to work collaboratively with First Nations to address environmental protection regulatory and capacity gaps on-reserve

First Nation members on reserve do not benefit from the same level of environmental protection as other Canadians. As a result, they face a disproportionate risk of negative impacts to their health and well-being, which is compounded by other social determinants of health, such as gender. The National Collaborating Centre for Indigenous Health's report titled Climate Change and Indigenous Peoples' Health in Canada^{Footnote 24} explores gender as a social determinant of health as well as how the negative effects of climate change are experienced by different genders^{Footnote 25}. Intersecting health inequities, as well as Indigenous Peoples' relationship to land and water, exponentially increase their experience of the combined negative effects of climate change and of environmental protection capacity and regulatory gaps on-reserve.

Since 2017, Indigenous Services Canada has been working collaboratively with interested First Nations, as well as Environment and Climate Change Canada, to identify a collaborative path forward to address environmental protection regulatory and capacity gaps on reserve. To date, over $1.6 million has been provided to eight First Nations organizations representing 263 communities in Saskatchewan, Ontario, Quebec and Atlantic Canada, to support regional First Nations-led discussions with communities. Outcomes of those discussions have identified environmental issues, priorities, and possible solutions that could be considered to address environmental protection gaps on-reserve. Addressing these gaps would help support self-determination and economic prosperity, contribute to the sustainable management of lands and resources, and help reduce health and safety risks in communities.

(a) Health

(b) Education

A safe and healthy learning environment is crucial for students to achieve positive education outcomes, no matter where they live. Schools are often the cornerstone of First Nations communities, providing students with a place to learn and grow while acting as a gathering place for community events and cultural activities. The department's Education Facility program provides funding to build and maintain federally or band-operated elementary and secondary education facilities and related facility services. Recent service highlights include:

• As of December 31, 2021, the department has invested significant resources to support 234 school-related infrastructure projects, 162 of which are complete. These projects will result in the construction or renovation of 185 schools, benefiting approximately 34,000 students, 126 of which are completed:
  • Construction of 69 new schools (benefiting approximately 18,000 students), 41 of which are complete; and,
  • Renovations or upgrades to 116 existing schools (benefiting approximately 16,000 students), 87 of which are complete.

As First Nations education transformation continues, collaborative work is ongoing with First Nations partners to better understand unique needs and subsequently address associated funding gaps. This includes:

• Interim Regional Education Funding Formulas;
• exploring how best to sustain First Nations education systems through Regional Education Agreements; and
• the High Cost-Special Education Program review led by the Assembly of First Nations.

(c) Economic Development

With capacity to shape and meet their economic development plans, Indigenous governing bodies are able to close socio-economic gaps on their own terms. Service highlights from the past year include:

• Providing funding to partially offset declines in own-source revenues resulting from the pandemic so that Indigenous governing bodies can continue to provide important community programs and services to their communities;
• Supporting the renewal and development of two regional Indigenous clean energy initiatives that build capacity for economically-sustainable clean energy projects in First Nations, Inuit, and Métis communities;
• Providing support for 17 Strategic Partnerships Initiatives across the country to coordinate efforts and reduce administrative burdens while pooling resources in support of Indigenous communities;
  • For example, the whole-of-government Strategic Partnerships Initiative (whose secretariat is housed at Indigenous Services Canada) received $36 million to support clean energy initiatives over three years starting in 2021-2022. With this funding the Strategic Partnerships Initiative has supported clean energy initiatives in the Atlantic region, Quebec, Alberta and British Columbia. These projects can help advance Indigenous-led climate action, support local economic development, and create skilled jobs while reducing pollution and improving air Quality^{Footnote 26};
• Providing support to over 350 communities under the Lands and Economic Development Services Program and over 150 communities under the Community Opportunity Readiness Program;
• Implementing the second year of the Indigenous Community Business Fund, which filled a gap in mainstream pandemic support measures for businesses. Funding was provided to 573 First Nation and Inuit communities and 110 community-owned businesses to support them in enduring the pandemic and providing essential services to their community members. Funding to support Métis businesses was flowed through five Métis Capital Corporations;
• Providing support to innovative Indigenous businesses and entrepreneurs to help commercialize their research and development of products and/or services; and,
• Announcing a new mandatory target to ensure that a minimum of 5% of the total value of federal contracts are awarded to businesses owned and led by Indigenous Peoples. The primary tool for achieving this target will be the Procurement Strategy for Indigenous Business, which was recently enhanced to further increase Indigenous participation within federal procurement.

Despite this positive progress, we know gaps continue to exist in economic development services. For example, First Nation and Inuit community-owned businesses play a unique role as employers and providers of essential services in their community. However, many are unincorporated, or lack formal board structures recognized by western systems, which limits access to capital opportunities and to mainstream programming. Additionally, income assistance rates for Indigenous individuals fall below provincial comparability. Existing funding has not kept up with demand to date.

(d) Social Development

(e) Infrastructure

(f) Bringing it all together: Child and Family Services Reform to Close Service Gaps

In addition to the implementation of the Act discussed in the service transfer chapter, extensive effort is underway to resolve past discrimination in funding and advance long-term reform of the Child and Family Services program. Two agreements, totalling $40 billion, demonstrate how the Government of Canada and First Nations can work together to address service gaps. The Agreement-in-Principle on the long-term reform of the First Nations Child and Family Services Program dedicates $20 billion over five years to improve the program, focusing on the prevention of harms and the well-being of children and families. The Final Settlement Agreement on compensation, signed on June 30, 2022, will provide $20 billion in compensation for those harmed by the discriminatory underfunding of the First Nations Child and Family Services Program and those impacted by the federal government's narrow definition of Jordan's Principle.^{Footnote 27}

On April 1, 2022, Canada began implementing early enhancements to the First Nations Child and Family Services Program, including:

• Funding for prevention activities based on a formula that multiplies $2,500 by the on-reserve First Nations population and the First Nations population in the Yukon;
• Funding for First Nations Representative Services in all provinces and the Yukon; and
• Funding for post-majority care for those aging out of care, or formerly in care, up to their 26th birthday.

(g) COVID-19 Response

The ongoing COVID-19 pandemic has posed extensive and unique challenges for Indigenous Peoples, particularly those living on-reserve. These challenges are exacerbated by long-standing social and economic inequities, which leave communities "disproportionately unprepared for the COVID-19 pandemic"^{Footnote 28}. Lack of clean water, overcrowding and housing insecurity, and limited access to health care and specialists or specialized equipment have contributed to the extensive challenges experiences by Indigenous communities during the pandemic. As of May 19, 2022, the cumulative reported numbers of COVID-19 cases on reserve include:

• 108,134 confirmed positive COVID-19;
• 3,317 hospitalizations;
• 106,689 recovered cases; and
• 727 deaths.

Indigenous Services Canada continues to support Indigenous governing bodies in their response to the ongoing pandemic. As of May 17, 2022, Indigenous Services Canada has shipped 2,302 orders for Personal Protective Equipment to First Nations communities, with 0 orders in progress. The orders include hand sanitizers, N-95 masks, isolation shields, gloves, gowns, and medical masks.

As of April 7, 2022, in partnership with Indigenous governing bodies, Indigenous Services Canada has:

• funded 637 mobile structures and identified 130 existing community spaces that can be upgraded or retooled to support surge health infrastructure needs;
• initiated 216 site servicing projects;
• answered 4,204 calls and online chats directly related to COVID-19 through the Hope for Wellness Help Line since March 2020;
• deployed 786 nurses and 531 paramedics in addition to the existing workforce to support First Nations communities since March 2020; and,
• facilitated the air transportation of 11,784 health human resources from across Canada to and from First Nations communities in Ontario, Manitoba, and Alberta.

In response to the ongoing effects of isolation imposed by the pandemic, Indigenous Services Canada has made efforts to ensure families stay together. For example, new visitation shelters in Manitoba are helping families stay connected and safe during the pandemic.

At personal care homes on reserves, families and friends have had to protect the most vulnerable community members including Elders, and persons with disabilities. To help maintain those important family connections, Indigenous Services Canada provided over $2 million for visitation units, which were set up in February 2021, in:

• Sioux Valley Dakota Nation;
• Peguis First Nation;
• Fisher River Cree Nation;
• Sagkeeng First Nation;
• Opaskwayak Cree Nation; and,
• Bunibonibee Cree Nation.

The pandemic has had very severe impacts on Indigenous businesses, which have faced additional challenges as many are concentrated in hard-hit sectors, such as agro-industries, construction and tourism^{Footnote 29}. To mitigate the impacts of the pandemic on Indigenous businesses, Indigenous Services Canada put in place the COVID-Indigenous Business Initiative, which has issued approximately $165 million in interest-free loans and non-repayable contributions to help Indigenous businesses stay afloat during the pandemic. Between April 2020 and June 2021, the initiative delivered over 6,333 loans to approximately 3,794 businesses. The initiative provided support tailored to the needs of Indigenous businesses when the Canada Emergency Business account loans were seen as less flexible and accessible.

To curb the high levels of debt that Indigenous businesses incurred during the pandemic, enable the potential for business growth, and limit the incidence of bankruptcy among businesses that accessed the Indigenous Business Initiative, the Government announced in Budget 2022 that it would forgive up to 50% of the repayable amount issued to Indigenous businesses through the initiative, which is worth approximately $82.5 million in loan credit.

Additionally, $117 million in pandemic support was provided through the Indigenous Community Business Fund as an emergency measure to offset operating losses which could not be addressed by mainstream business supports^{Footnote 30}.

The next chapter will discuss the department's partnerships to advance transformative approaches to Indigenous data to inform the way forward.