Tenth Annual (2024) Statutory Report Pursuant to Section 2 of the Indian Act Amendment and Replacement Act, Statutes of Canada, Chapter 38, 2014

1. Ongoing work to transfer departmental responsibilities to Canada’s Indigenous Peoples

In 2015, the federal government committed to doing the work necessary to meaningfully advance truth and reconciliation with Indigenous Peoples. Since then, the federal government has worked to renew its nation-to-nation, government-to-government, and Inuit-Crown relationships. The Government of Canada continues to support Indigenous Peoples on the path toward self-determination, to implement self-government, and to transition away from the Indian Act. Under the Department of Indigenous Services Act, Indigenous Services Canada is mandated to work towards the transfer of departmental responsibilities to Indigenous organizations. The transfer of services to Indigenous-led control and responsibility is intrinsically linked with the Government’s commitment to advance self-determination, nation-to-nation, Inuit-to-Crown, and government-to-government relationships and reconciliation.

Under the Department of Indigenous Services Act. passed in July 2019, Indigenous Services Canada is required to report annually to Parliament on progress towards fulfilling its mandate, including the progress made towards the transfer of responsibilities. The fourth annual report was tabled in Parliament on October 16, 2023.

The transferring of services will allow Indigenous governments to set and implement priorities respecting their communities, lands, and resources. Indigenous Peoples, businesses, and communities must have the opportunity to fully participate in the economy, and build opportunities for themselves and future generations in the ways they see fit, consistent with their constitutionally protected rights.

In summer 2023, as part of the United Nations Declaration on the Rights of Indigenous Peoples Act Action Plan 2023-2028, the Government of Canada announced that Indigenous Services Canada plans to engage with partners on the co-development of a Service Transfer Policy Framework. The purpose of the Framework would be to jointly advance the transfer of responsibility for the design, delivery and management of services from Indigenous Services Canada to Indigenous partners.

2. Health services

Indigenous Services Canada strives to improve Indigenous health outcomes, provide access to quality health services and support greater Indigenous control of the health systems.

Since 2021, Indigenous Services Canada has been engaging with Indigenous partners on the co- development of legislation to improve access to high-quality, culturally- relevant, and safe health services. Partners have continuously expressed that access to culturally competent care and continuing to address anti-Indigenous racism in health care are core priorities that need to be addressed by the Government of Canada. From winter 2021 to fall 2022, regional and national First Nations, Inuit, Métis, and intersectional partners led numerous engagements within their communities on the vision for distinctions-based Indigenous health legislation. A report, What we heard: Visions for Distinctions-based Indigenous Health Legislation, summarized what was heard through engagement and was made publicly available in January 2023. From fall 2022 to June 2023, Indigenous Services Canada launched distinctions-based+ co-development processes, which focused on translating what was heard through engagement into proposed legislative options. This was followed by the release of a "Key Legislative Elements" document in August 2023, which outlined the potential measures for Indigenous health legislation. Indigenous Services Canada hosted multiple discussions to seek feedback on the proposed legislative measures and received over 30 written submissions from partners across distinctions. Input will be used to inform policy and legislative approaches.

Announced on April 14, 2023, the First Nations Health Authority and the Government of Canada renewed 10-Year Funding Agreement providing $8.2 billion to support the Authority in a self- determined approach as they deliver, design and administer health services and support that meet the unique needs of British Columbia First Nations communities. This investment will support the historic transfer agreement signed in 2011 by the First Nations Health Council, Canada and British Columbia.

Through Budget 2021, the Government of Canada made an investment of $107.1 million over three years to continue efforts in transforming how First Nations communities design and deliver healthcare services. This funding has continued over this last fiscal year to help support these initiatives.

Five federally funded health transformation initiatives are now also underway in Nova Scotia, Quebec, Ontario, and Manitoba (two), involving 172 First Nations communities. In 2023, initial funding was also provided to communities in Saskatchewan to include new projects as they explore health transformation for their communities. Progress over the last fiscal year related to Health Transformation Projects includes:

1. Agreements-in-Principle being drafted in Manitoba.
2. First Nations of Quebec and Labrador Health and Social Services Commission presentation of a health governance model in spring 2023.
3. Memorandum of Understanding signing in spring 2023 in Nova Scotia.

A Memorandum of Understanding (MOU) signed by thirteen Mi’kmaq First Nations Chiefs on April 21, 2023 defines a set of priorities and outlines the process required to transfer the design and delivery of federal health services to the Mi'kmaq through Tajikeimɨk. Working on behalf of the Mi'kmaq in Nova Scotia, Tajikeimɨk is a Mi'kmaw health and wellness organization that is guided by the 13 Chiefs and Health Directors in the province and the Mi'kmaq Grand Council.

Health Transformation is about paving the way for First Nations to redesign health care delivery models to meet their communities' specific needs. This Memorandum of Understanding will improve access to high-quality and culturally-safe health care services, led by First Nations for First Nations, and create a roadmap to close the gap in health outcomes between Indigenous Peoples and non-Indigenous people in Canada.

The Government of Canada continues to work with Indigenous partners on Indigenous health priorities. In 2022, Indigenous Services Canada finalized a three-year agreement with the Saskatchewan Indian Institute of Technology to invest in the health of First Nations in Saskatchewan by advancing initiatives in digital innovation for timely access to health care service delivery, through a virtual health hub project. The Saskatchewan Health Hub Leadership team consists of experts from the Saskatchewan Indian Institute of Technology and from the Whitecap Dakota First Nation.

The team has received funding from the department through a contribution agreement ($12.7 million over three years beginning in 2022-23) to support recruitment, training and development of human resources, and procurement of technology, both software and hardware. An additional $2.0625 million was provided through a separate contribution to support architectural design services.

3. Education

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.

For First Nation elementary and secondary education for students living on reserves, this includes the development of regional educational agreements between the Government of Canada and interested First Nations partners. Regional education agreements work to improve First Nation students’ educational outcomes in elementary and secondary schools so that they have equitable access to culturally appropriate education services. Regional educational agreements support the design, implementation, and management of education systems that respond to the different educational needs and priorities of First Nations communities of a given region, recognize that First Nations are best placed to make decisions on their self-determined priorities, and align with the principle of First Nations control of First Nations education. For instance, through Budget 2022, the Government of Canada announced $310.6 million over five years to better support elementary and secondary students s target outcomes to better reflect their unique needs, culture and language, for 22 First Nations communities in Quebec through a regional education agreement with the Quebec First Nation Education Council.

Budget 2023 noted over $5.9 billion in investments since 2015 for elementary and secondary education to help First Nations children living on reserve receive high-quality schooling. Since 2016 and as of June 30, 2023, $1.97 billion in targeted infrastructure funding is supporting 302 school facility projects which will result in the construction or renovation of 215 schools, 144 of which are complete, benefitting approximately 35,000 students; $417 million targeted for First Nations post-secondary education.

Collaborative work with partners continues to advance priorities relating to post-secondary education. A comprehensive review of Indigenous post-secondary education programming informed the Budget 2019 investments of $327.5 million over five years for a new First Nations post-secondary education strategy, as well as $125.5 million over 10 years for a new Inuit post-secondary education strategy and $362 million over 10 years for a Métis Nation post-secondary education strategy. Starting in 2019, Indigenous Services Canada began implementing these three distinctions-based post-secondary education strategies. A key priority related to post-secondary education is the ongoing work with First Nations related to the development and implementation of First Nations regional post-secondary education models, which are intended to advance First Nations control of First Nations education, supporting First Nations to tailor programming to their local or regional goals and priorities and the specific post-secondary education needs of the region. Investment in post-secondary education for First Nations improves overall health and wellness, as well as employment and income, while decreasing reliance on social assistance.

Post-secondary education is a priority for the department, and Indigenous Services Canada will continue to work with partners on ways to improve outcomes in this important work. All First Nations have the right to learn, grow, and use their education to lift their families out of the cycle of poverty and overcome historic colonial practices and previous underfunding of education on reserve.

4. Reform of Child and Family Services

The transformation of Indigenous child and family services is developing on two parallel and complementary paths. Both the reform of the First Nations Child and Family Services Program (the Program) and the implementation of An Act respecting First Nations, Inuit and Métis children, youth and families (the Act) focus on reducing the risks associated with children, youth, and families coming into contact with child and family services and keeping families together, through a new approach for the well-being of children, youth and families.

Since 2020, the department has worked closely with Indigenous leaders interested in exercising jurisdiction in relation to child and family services, in line with An Act Respecting First Nations, Inuit and Métis children, youth and families. By November 2023, the following milestones were achieved:

• Six coordination agreements and one bilateral agreement have been concluded, totaling $1,243.6 million in signed agreements with Indigenous governing bodies.
• Three Indigenous governing bodies currently have their laws in force without a coordination agreement in place.
• Coordination agreement discussions with 18 Indigenous governing bodies.
• Funding of over $173 million has been allocated towards 268 capacity building proposals to support Indigenous governing bodies.
• 70 engagement sessions have been held by Indigenous communities and external stakeholders, that have provided feedback and recommendations to Canada on the implementation of the Act from diverse perspectives.
• 77 Indigenous governing bodies, representing more than 105 communities, have declared their intention to exercise jurisdiction pursuant to the framework of the Act.

ISC has taken a collaborative approach in implementing the framework of the Act through ongoing discussions and engagements with Indigenous partners, and provincial and territorial counterparts, as well as across the federal government. As part of the Government of Canada's funding commitment to support the implementation of the Act, capacity-building funding is available to support Indigenous groups, communities and peoples and their Indigenous governing body wishing to:

• explore readiness to exercise jurisdiction; and,
• develop Indigenous child and family service legislation, systems, and programs prior to entering into coordination agreement discussions.

In the spirit of co-development, bilateral governance structures have been established with National Indigenous Organizations to support broad engagements on implementing the Act, so that many perspectives are heard. Regular engagement through these forums continued in 2023-2024 and included:

1. Ongoing discussions on the renewal of Joint Protocol with the Assembly of First Nations on the Act.
2. Ad Hoc Child Welfare Working Group with Inuit Tapiriit Kanatami.
3. Renewal of the Memorandum of Understanding on Developing a Canada-Métis Nation Child and Family Services Accord (MoU) with the Métis National Council.
4. Distinctions-based working groups to co-develop strategies to address the over-representation of Indigenous children and youth in care.

As of November 2023, 27 Indigenous governing bodies have sent a request under subsection 20(2) of the Act to enter into a coordination agreement. There are currently ten Indigenous governing bodies with in laws in force. Among these, six have a fiscal agreement in place that sets out funding to support the operationalization of their coordination agreement. These are: Cowessess First Nation in Saskatchewan, Wabaseemoong Independent Nations in Ontario, Peguis First Nation in Manitoba, Kitchenuhmaykoosib Inninuwug in Ontario, Splatsin in British Columbia, and Founding First Nations (Loon River First Nation, Lubicon Lake Band, Peerless Trout First Nation) in Alberta. In addition, one bilateral agreement with Louis Bull Tribe in Alberta has been concluded.

The Government of Canada has appealed to the Supreme Court of Canada the Quebec Court of Appeal's February 2022 decision that section 21 and subsection 22(3) of the Act are invalid. The Court's opinion on the constitutional validity of the Act, is expected to be announced any time.

Alongside these jurisdictional advances, there have been reforms to the First Nations Child and Family Services Program. In 2016, the Canadian Human Rights Tribunal found that Canada had discriminated against First Nations children by underfunding First Nations child and family services and applying a narrow definition of Jordan’s Principle. In addition to implementing the decision and subsequent orders issued by the Tribunal, Indigenous Services Canada has been working with the parties to the Tribunal complaint and other First Nations partners to bring comprehensive reform to the Program. These comprehensive reforms aim to keep children connected to their families, communities and cultures and reduce the number of First Nations children in care. An Agreement-in-Principle on the long-term reform of the First Nations Child and Family Services Program and a renewed approach to Jordan’s Principle was reached on December 31, 2021. Since that time, negotiations with the Assembly of First Nations, the First Nations Child and Family Caring Society, the Chiefs of Ontario and the Nishnawbe Aski Nation towards a final settlement agreement have continued. On April 1, 2022, the Government of Canada began implementing early program reforms. These ongoing measures, which in the 2022-23 fiscal year amounted to approximately $2.7 billion, include increased funding for prevention, First Nations representative services in all provinces and the Yukon (rather than just in Ontario as it was previously), and for the expansion of post-majority support services for young adults formerly in care up to their 26th birthday.

A final settlement agreement on compensation was reached and approved by the Federal Court. Implementation of the agreement will occur in 2024. This First Nations-led agreement includes a total of $23.34 billion to compensate First Nations children and families who were harmed by discriminatory underfunding of the First Nations Child and Family Services (FNCFS) program and those impacted by the federal government’s narrow definition of Jordan’s Principle. The agreement also provides for mental wellness and cultural supports to address the needs of claimants and minimize the risk of re- traumatization, both when they make their claim and after they receive their payment.

5. Amendments to the Indian Act to eliminate sex-based inequities in registration

Following Bill S-3, An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur general) coming into force in 2017, the Government of Canada is committed to engaging with First Nations and other partners on its implementation and addressing sex-based inequities in the registration provisions of the Indian Act. The implementation of these amendments to the Indian Act is an important shift towards confronting Canada's history and redressing historical wrongs. It is a shift that ensures that Canada continues to renew and rebuild its relationship with Indigenous Peoples based upon the affirmation of rights, respect, cooperation and partnership.

The Final Report to Parliament on the Review of S-3 was tabled in December 2020. It found that while all known sex-based inequities in the registration provisions of the Indian Act have been eliminated, residual impacts of these historical sex-based laws and policies remain.

In 2021, the Nicholas v. AGC Charter litigation was filed by plaintiffs who were impacted by enfranchisement. In January 2022, Canada entered into an abeyance agreement with a view to introducing legislation to amend the Indian Act to address enfranchisement, individual deregistration by application, natal band membership, and outdated and offensive language.

Bill C-38, An Act to amend the Indian Act (new registration entitlements), was introduced in the House of Commons on December 14, 2022, and seeks to address some of the remaining inequities in the registration and band membership provisions of the Indian Act. It addresses four areas related to enfranchisement, individual deregistration, natal band re-affiliation and membership, and outdated and offensive language related to dependent persons. The proposed legislation also responds to longstanding concerns raised by First Nations and other individuals affected by the residual inequities that still remain in the Indian Act. For example, the Bill would ensure First Nations individuals with family histories of enfranchisement will be entitled to registration under the Indian Act, as well as transfer the right for registration to their descendants.

The Government of Canada has also committed to co-develop and launch a collaborative consultation process on broader issues related to registration and band membership under the Indian Act, including the second-generation cut-off. This commitment is reflected in the United Nations Declaration on the Rights of Indigenous Peoples Act Action Plan 2023-2028. The co-development of this work began in July 2023 with a letter of invitation from the Minister of Indigenous Services to Indigenous organizations seeking their participation in the co-development process. Further consultation will be required to address the second generation cut-off and voting threshold, issues which are affected by the registration and band membership provisions of the Indian Act. Consultation events are expected to launch in 2024.

6. Infrastructure

The Government of Canada has committed to closing the infrastructure gap in First Nations, Inuit and Métis communities by 2030. In support of this goal, since 2016 and as of June 30, 2023, Indigenous Services Canada has funded over $9.9 billion in targeted infrastructure funding to support 457 community infrastructure projects, such as water and wastewater, housing, education facilities, health facilities, solid waste management and other community infrastructure.

These investments are making an impact; for example, since November 2015, and as of November 16, 2023, First Nations have lifted 143 long-term drinking water advisories and addressed 267 short-term advisories, preventing them from becoming long-term.

In December 2023, the Minister of Indigenous Services introduced new legislation in Parliament: Bill C- 61, An Act respecting water, source water, drinking water, wastewater and related infrastructure on First Nation lands.

Bill C-61 would affirm the inherent right of First Nations to self-government. It would ensure that First Nations have more tools necessary to protect source water and maintain drinking water and wastewater infrastructure in a self-determined way. It would hold the federal government accountable to continued funding investments in water infrastructure. It would also lead to the application of minimum standards for clean drinking water in every First Nation and lay the groundwork for the creation of a First Nation- led water institution to support communities.

The proposed legislation was developed through comprehensive engagement that put First Nation voices at the forefront. Canada worked directly with First Nation rights-holders, including Modern Treaty and Self-Governing First Nations, through their own representative institutions and First Nation organizations, including the Assembly of First Nations and the First Nations Advisory Committee on Safe Drinking Water, to help ensure the Bill is reflective of First Nations needs and priorities. Other initiatives are underway to support infrastructure needs of Indigenous communities. In October 2023, the Minister of Indigenous Services and the Executive Director of the Confederacy of Mainland Mi’kmaq signed a historic, co-developed Framework Agreement to work together on the transfer of control, delivery and management of First Nations housing and infrastructure services to participating Mi’kmaw First Nations. Once the transfer is complete, participating communities, in partnership with the Confederacy of Mainland Mi’kmaq, will assume control of the design, management, provision and delivery of all housing and infrastructure programs and services currently under Indigenous Services Canada’s Capital Facilities and Maintenance Program, except for water and wastewater services.

Indigenous Services Canada also continues to support innovation and capacity-building in First Nations communities to further pave the path to transfer. For example, Indigenous Services Canada provided additional funding for First Nations to subsidize housing manager positions in support of First Nations- identified priorities for capacity and skills enhancement on reserve. Additionally, Indigenous Services Canada is supporting capacity-building projects related to water and wastewater on reserve, including through the Circuit Rider Training Program (long-term capacity building programs that provide training and mentoring services to operators of First Nations solid waste systems).

The Urban Programming for Indigenous Peoples program focuses explicitly on Indigenous Peoples living in, transitioning to, or accessing services in urban centres. This program assists First Nations (status and non-status), Inuit and Métis Peoples living off-reserve by providing financial support to urban Indigenous service delivery organizations. These Indigenous service delivery organizations support Indigenous Peoples in navigating what are often harsh and complex urban realities.

The program also provides funding to coalitions to encourage continued collaboration among multiple government jurisdictions, the philanthropic sector and Indigenous organizations to prioritize areas of greatest local and regional need and to leverage existing programs and sources of funds. Additionally, the program’s research and data collection initiatives help better understand the growing needs of the urban Indigenous population. First Nation communities continue to prioritize ensuring access to these vital services for their off- reserve and urban members.

Since Budget 2019 and as of September 30, 2023, Indigenous Services Canada has invested $115.2 million of targeted funds (excluding operating expenses) to support 169 Urban Infrastructure projects, 62 of which are complete.

Examples of these Urban Infrastructure projects include:

1. Mi’kmaw Native Friendship Centre Building – construction of a new building for the Mi’kmaw Native Friendship Centre in Nova Scotia;
2. Manitoba Métis Federation - Red River Métis Youth Resource Centre St. Ambroise – renovations to the St. Ambroise Red River Métis Youth Resource Centre building in Manitoba;
3. Ka Ni Kanichihk Inc. Cultural Wellness Centre in Manitoba – expansion of the existing building; and,
4. Tunngasugit Inc. Inuit Resource Centre – purchase of an 8,140 sq. ft. building and renovation to address critical needs of space to run the program in Manitoba.

Health infrastructure is essential to providing effective, sustainable and culturally-appropriate health programs and services that help reduce the gaps in health status between First Nations and other people in Canada. The Government of Canada is committed to supporting First Nations partners’ work to deliver high quality health care programs and services. Indigenous Services Canada continues to work closely with First Nations communities to identify health infrastructure priorities to ensure communities have access to safe facilities in which to deliver needed health programs and services. Since 2016 and as of June 30, 2023:

• Indigenous Services Canada has invested $650 million of targeted funds (excluding operating expenses) to support 283 infrastructure projects to design, replace, expand, repair or otherwise renovate First Nations health facilities, health professional accommodations, addictions treatment centres, addictions treatment centres for youth, other health infrastructure, and facilities hosting Aboriginal Head Start On Reserve programming. These projects will benefit 217 communities, serving approximately 247,000 people. Of these 283 infrastructure projects, 207 projects are complete as of June 30, 2023.
• 92 health facilities projects have been undertaken in First Nations communities to better align their health programming and related facilities with community-identified health service delivery priorities. As of June 30, 2023, 40 of 92 health facilities projects are complete.
• Seven addiction treatment centres construction projects have been undertaken in First Nations communities. As of June 30, 2023, five of seven addiction treatment centres construction projects are complete.
• 165 Aboriginal Head Start On Reserve infrastructure projects have been undertaken in First Nations communities. As of June 30, 2023, 159 of 165 of these infrastructure projects are complete.

7. Indigenous governance and capacity building

Progress towards transfer of responsibilities relies on the capacity of Indigenous governments to implement community-driven, nation-based community development and planning initiatives that engage Indigenous Peoples in expressing their own strengths and visions for the future. The Indigenous Community Development National Strategy was co-developed through partnerships between representatives of First Nations, Indigenous organizations, Indigenous Services Canada and Crown- Indigenous Relations and Northern Affairs Canada and includes an ongoing engagement process with Indigenous community advisors across regions. The National Strategy is designed to guide the Government of Canada in supporting Indigenous Peoples and communities according to their self- determined priorities. It can be applied in a flexible way to: meet unique and diverse regional needs with the goal of supporting planning and general capacity building; supporting community-to-community learning; break down silos within and between departments; and increasing the federal public service’s cultural competencies.

First Nations governments need resources to meet the needs of their communities and deliver the services and programs their communities rely on. The ongoing growth of an Indigenous public sector supports transferring departmental programs and service to Indigenous control. To fulfill its mandate, Indigenous Services Canada supports Indigenous governments with the core costs of governance as well as targeted programs to build governance capacity. These programs also support Indigenous organizations who provide supports and professional development to enhance the governance and planning capacity of Indigenous governments.

The Governance Modernization Working Group is co-chaired by the Assembly of First Nations and Indigenous Services Canada. Research is underway regarding the responsibilities, activities and costs associated with core governance: financial management, human resources management, planning, information management, and information technology. Budget 2021 identified $151.4 million in funding to provide wrap-around supports for First Nations with the greatest community development needs. Twenty-two First Nation communities were selected to participate in the Community Development Wrap-Around Initiative which supports the implementation of community identified priorities by removing barriers to community development, promoting capacity development opportunities in First Nations, collaborating with partners to leverage existing program funding, and filling funding and authority gaps as required.

To date the Community Development Wrap-Around Initiative has assisted communities in getting community development projects off the ground in areas such as infrastructure, culture, recreation, and economic development by unlocking funding opportunities with national partners to achieve community goals. The Initiative’s single window approach has allowed the coordination of funding across program areas in federal, provincial, and private sectors and removed obstacles related to community development implementation. The Initiative has also supported the development of in-community capacity, in areas including governance, administration, project management, financial management and technical trades. First Nations continue to identify opportunities to build sustainable skills and knowledge that will support them in achieving their broader community development vision.

In 2019, the Transformational Approach to Indigenous Data initiative was launched as part of Canada’s commitment to its obligations under the United Nations Declaration on the Rights of Indigenous Peoples and the Truth and Reconciliation Act Commission’s Calls to Action. The initiative focuses on advancing Indigenous data capacity to support the inherent strengths, resilience, and knowledge systems of Indigenous Peoples as a foundational component of Indigenous self-determination.

Since 2018, Indigenous Services Canada has funded the First Nations Information Governance Centre and its regional partners to coordinate the development of a First Nations-led national data governance strategy.

The First Nations Data Governance Strategy aims to establish a national network of Information Governance Centres, run by and for First Nations. Centres will provide data and statistical services to their communities, governments, and service delivery organizations. The goal is to give First Nations the infrastructure needed to control, hold, and leverage their data, exercising their rights to self- determination and self- government, including data sovereignty.

At the national level, the Data Champion Team is engaging First Nations-led partner organizations to identify their priority needs and establish collaboration frameworks with federal departments on data governance, access, sharing, and transition. The national network of First Nations-led Information Governance Centres is a key pillar of the Transformational Approach to Indigenous Data initiative, helping First Nations meet their own data needs during service transfer and participate in stronger, more inclusive information systems to close data gaps.

8. First Nation leadership selection

The Government continues to work with First Nations in the development and implementation of electoral systems outside of the Indian Act. The First Nations Elections Act and First Nations Elections Regulations came into force on April 2, 2015 and there are 85 First Nations in Canada currently holding elections under the Act. The Act and Regulations were developed in collaboration with First Nations organizations to make improvements to First Nations election processes.

Under the First Nations Elections Act, a First Nation that holds its elections under the Indian Act election system may develop its own community election code and ask the Minister of Indigenous Services to issue an order that removes the First Nation from the application of the Act's electoral provisions. Currently, 369 First Nations in Canada hold their elections under a community election code.

Community or custom leadership selection processes are often documented in a community's election code, which provide the rules under which chiefs and councillors are chosen for those First Nations who are not under the Indian Act election rules. These codes vary depending on the First Nation and are often unique to the specific community.

Indigenous Services Canada is never involved in elections held under community or custom election processes, nor will it interpret, decide on the validity of the process, or resolve election appeals. The Department's role is limited to recording the election results provided by the First Nation. When a dispute arises concerning a community or custom election process, it must be resolved according to the related provisions in a community's election code, or by the courts.

9. Economic Reconciliation

Indigenous Services Canada has continued to work to close socioeconomic gaps and prioritize the economic prosperity of all Indigenous Peoples in Canada. The ability for Indigenous Peoples and Indigenous individuals to participate fully in the Canadian economy is key to improving socio-economic outcomes. Strong Indigenous economies and full involvement of Indigenous individuals in the Canadian economy also contribute to a strong Canadian economy.

There are 357 First Nations that have opted into the First Nations Fiscal Management Act, allowing them to work with the fiscal institutions and to assert their jurisdiction in the area of fiscal governance. In 2021 the Act was amended to allow First Nations that are borrowing members of the First Nations Finance Authority to borrow against tax revenues to secure capital for community investments and further amendments are being explored to expand and make operational improvements to the Act. In 2023, the Act was amended again to make several updates and key changes, which were co-developed with the institutions of the Act.

The Framework Agreement on First Nation Land Management is a nation-to-nation agreement that Canada ratified in 1999 with the passage of the First Nation Land Management Act. In 2022, the First Nation Land Management Act was repealed and replaced with the Framework Agreement on First Nation Land Management Act, more concise legislation that recognizes the primacy of the Framework Agreement and provides it with the force of law. The Framework Agreement enables First Nations to opt-out of 44 sections of the Indian Act relating to land management. Through a community-driven process, First Nations develop their own land codes about land use, the environment and natural resources and take advantage of cultural and economic development opportunities with their new land management authorities. In the developmental stage a First Nation is provided funding and technical support to develop and conduct community consultations on the content of their land code, as well as hold a ratification vote on the final land code. In 2023, Canada negotiated and signed a new Agreement- in-Principle on operational funding with the Lands Advisory Board, the representative body for signatory First Nations. The agreement, supported by a commitment of new funding in Budget 2023, includes funding to add another 50 signatories to the Framework Agreement over the next five years. As of October 27, 2023 there are 209 signatories to the Framework Agreement on First Nation Land Management, including 105 operating under their own land codes and 55 First Nations who are active in the developmental stage. A further four First Nations have transitioned from operational under the Framework Agreement to comprehensive self-government agreements.

The Reserve Land and Environment Management Program was established in 2005 and aims to support First Nations to develop capacity to manage their reserve lands, natural resources, and environment under the Indian Act. As of November 1, 2023, 130 First Nations are participating in the Program: 24 in Training and Development (Level 1), 98 Operational (Level 2) and 9 in the Delegated Authority (Level 3, closed to new participants since 2011). In partnership with the National Aboriginal Lands Managers Association , 18 land managers were trained through the Professional Lands Management Certification Program in 2022-2023. Budget 2023 provided $30 million over five years to enhance the program, targeting community-level improvements and expansion. With this new funding, the Program is establishing a base-level amount of funding and will be able to support an additional 25 to 44 First Nation communities.

The Aboriginal Entrepreneurship Program provides essential support to Indigenous small and medium- sized entrepreneurs to increase the number of viable Indigenous-owned businesses in Canada. The Program provides funding for non-repayable equity contributions to enable commercial lending for entrepreneurs to start, expand or acquire a business, as well as diverse business services. It also supports cost of capital, capacity building and training, and access to business opportunities.

The federal government remains committed to negotiating mutually beneficial tax agreements with interested Indigenous governments, including implementing the First Nations Goods and Services Tax within their settlement lands or reserves and, with interested self-governing Indigenous governments, to enable the implementation of personal income taxes within their settlement lands.

With regard to supporting Indigenous businesses and community economic development in the pursuit of closing socioeconomic gaps, Budget 2022 provided $150 million over five years, starting in 2022-23, to Indigenous Services Canada’s Lands and Economic Development Services Program and Community Opportunity Readiness Program, to advance shovel-ready economic opportunities in Indigenous communities. To ensure that all communities are well positioned to benefit from these investments, Budget 2022 also provided $35 million over five years, starting in 2022-23, to increase economic capacity supports, including specialized training opportunities delivered by Indigenous-led organizations. These funds are now being invested with First Nation and Inuit communities to support their economic development and capacity building goals.

Budget 2023 proposes to provide $5 million in 2023-24 to Indigenous Services Canada to support the co- development of an Economic Reconciliation Framework with Indigenous partners that will increase economic opportunities for Indigenous Peoples, communities, and businesses. Building on the strong foundation set out in recent Indigenous-led initiatives, such as the National Indigenous Economic Strategy and the First Nations Financial Management Board’s RoadMap project, the Framework will help to define the role of federal and Indigenous organizations in advancing economic reconciliation through measures that reflect the unique needs, perspectives, and interests of Indigenous Peoples.

Based on the recommendations put forth by an Assembly of First Nations and Indigenous Services Canada joint 2017 report, A New Approach Forward: Co-Development of a New Fiscal Relationship Between Canada and First Nations, a 10-year-grant (the Grant) mechanism was developed and launched in 2019-2020. It provides long-term, predictable funding for eligible First Nations who choose to join. The Grant enables First Nations to build capacity and effectively plan further into the future than ever before, supporting 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. Five years since being introduced, the New Fiscal Relationship Grant has been adopted by 143 First Nations who received over $1.3 billion through the Grant in 2023-24. The Grant escalator approved in Budget 2021 has provided $107.9 million in predictable increases to Grant funding based on inflation and population growth. Eligibility for the Grant is based on standards developed by the First Nations Financial Management Board for adopting a financial administration law and meeting financial performance criteria.

The federal government is committed to supporting initiatives that return control and decision-making over the use of First Nations lands back to First Nations communities. This supports economic growth and self-determination for First Nations, and moves us further along the path of reconciliation.

10. Conclusion

Indigenous Services Canada’s legislated mandate of closing socio-economic gaps and the gradual transfer of departmental responsibilities to Indigenous control is, ultimately, about recognizing and affirming Indigenous Peoples' inherent right to self-determination. It is essential that work to meet this mandate respects the distinct needs and mandates of First Nations, Inuit, and Métis, and that it upholds treaty and Aboriginal rights, and federal obligations.

Indigenous Services Canada will continue to work with Indigenous partners on refining and increasing Indigenous access to quality services that are essential to closing socio-economic gaps. The department will do this through co-developed initiatives that build community capacity and support to the unique needs of Indigenous Peoples, and we will continue to actively work towards the shared objective of transferring the full responsibility of design and delivery of culturally appropriate services to Indigenous control.

Achieving progress on transfer, as well as closing socio-economic gaps, will require continued investments to ensure future sustainability. Experience has shown that investing in services where Indigenous governments and organizations played a key role in their design and delivery leads to better outcomes for all Indigenous groups . In supporting self-determination, we can have an immediate positive impact on the closing of socio-economic gaps between Indigenous Peoples and non-Indigenous people in Canada.