Appearance before the Standing Committee on Indigenous and Northern Affairs (INAN) on the 2024-25 Main Estimates, May 22, 2024 and May 29, 2024

Indigenous Services Canada (ISC)

• The Hon. Patty Hajdu, Minister of Indigenous Services
• Gina Wilson, Deputy Minister
• Candice St-Aubin, Senior Assistant Deputy Minister
• Catherine Lappe, Assistant Deputy Minister
• Danielle White, Assistant Deputy Minister
• Marc Sanderson, Assistant Deputy Minister
• Paula Hadden-Jokiel, Assistant Deputy Minister
• Marc Geoffrion, Director General and Deputy Chief Financial Officer
• Jessica Sultan, Director General
• Jonathan Allen, A/Director General

Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC)

• The Hon. Gary Anandasangaree, Minister of Crown-Indigenous Relations
• The Hon. Dan Vandal, Minister of Northern Affairs

Slide 1 - Indigenous Services Canada (ISC) – 2024-25 Main Estimates

April 2024

Slide 2 - 2024–25 Main Estimates – Key Messages

• For 2024–25, ISC's Main Estimates is $21.0 billion.
• A net decrease of $18.6 billion, or 46.9%, compared to last year's Main Estimates. This is primarily due to $20.0 billion for the First Nations child welfare settlement in 2023–24.
  Note: The variance explanation is based on changes between Main Estimates 2024-25 and 2023-24, therefore it does not include the $3.3 billion obtained via the 2023-24 Supplementary Estimates. In 2023-24, the settlement amount totals $23.3 billion.
• In addition to the Main Estimates, ISC is also anticipating funding from the investments announced in Budget 2024.
  • Pending these funding decisions, this additional funding would be accessed through future Estimates processes (i.e. Supplementary Estimates).
• Interim supply totaling $14.8 billion has been received as of April 1, 2024.
• Full supply of the 2024–25 Main Estimates is expected in late June 2024.

Slide 3 - Year-Over-Year Major Changes

The net decrease in budgetary spending is $18.6 billion or 46.9% over the 2023–24 Main Estimates. The major changes include:

• a net decrease of $19.9 billion for child and family services which is primarily due to $20.0 billion for the First Nations child welfare settlement in 2023–24;
  Note: The variance explanation is based on changes between Main Estimates 2024-25 and 2023-24, therefore it does not include the $3.3 billion obtained via the 2023-24 Supplementary Estimates. In 2023-24, the settlement amount totals $23.3 billion.
• a net decrease of $263.1 million for income assistance which is primarily due to sunset of funding for the Income Assistance – Immediate Supports;
• a net decrease of $167.6 million for public health promotion and diseases prevention which is primarily due to:
  • a net decrease in funding for mental wellness, including sunset of funding related to distinctions-based mental wellness and trauma-informed health and cultural supports, mental health and wellness (Budget 2021) and legacy of residential schools (Budget 2022); and
  • a net increase in funding for communicable disease control and management.
• a net increase of $248.7 million for health systems support which is mainly due to funding for the First Nations Health Authority;
• a net increase of $675.8 million for community infrastructure which is primarily due to:
  • the one-time investment in the Northern Ontario Grid Connection Project; and
  • a net decrease in funding related to infrastructure projects in Indigenous communities.
• a net increase of $725.6 million for Jordan's Principle and the Inuit Child First Initiative which is primarily due to a net increase in core funding for the continued implementation of Jordan's Principle; and
• a net increase of $69.2 million for remaining programs with changes in the approved funding levels.

Slide 4 - Funding by Category

Text alternative for: Funding by Category

This pie chart shows the breakdown of funding by category for 2024-25 Main Estimates totaling $21,039 million. The breakdown is shown as follows: $18,340 million (87%) for transfer payments; $6 million (0%) for capital, $1,842 million (9%) for direct health services and benefits / federal teachers / statutory costs; $23 million (0%) for administration and legal costs related to the compensation for First Nations Children and Families, $549 million (3%) for program management and delivery; $279 million (1%) for administrative overhead.

Based on this, 96% (87% + 9%) of resources are used to support or deliver services to Indigenous peoples and the remainder of 4% is for program management and delivery (3%) and administrative overhead (1%).

Slide 5 - Funding by Departmental Results Framework

Slide 6 - Expenditures Trend - Health

Note:

• ISC was established on November 30, 2017. Therefore, the 2017-18 Actual Expenditures represents a partial year from November 30, 2017 to March 31, 2018.
• 2017-18 to 2022-23 Actual Expenditures as per ISC Departmental Results Reports.
• The financial information from 2017-18 to 2022-23 has been restated to reflect the 2023-24 Departmental Results Framework.
• Overall, actual expenditures for health have increased by about 57% over the period from 2018-19 to 2022-23.
• Expenditures increase observed from 2018-19 to 2019-20 primarily reflects investments provided by Budget 2017, Budget 2018, and Budget 2019 on Indigenous health activities, such as Jordan's Principle, non-insured health benefits, and mental wellness.
• The increase in 2020-21 is mainly due to COVID-19 measures, such as:
  • public health measures in Indigenous communities,
  • Indigenous mental wellness, and
  • supporting a safe restart in Indigenous communities.
• The increase from 2021-22 to 2023-24 Forecast Spending is primarily due to a net increase in funding for Jordan's Principle and the Inuit Child First Initiative, non-insured health benefits and First Nations Health Authority as well as mental wellness. This increase is being partially offset by sunset of funding related to COVID measures.
• The decrease from 2023-24 Forecast Spending to 2024-25 is primarily due to a net decrease of funding for non-insured health benefits, mental wellness and Jordan's Principle and the Inuit Child First Initiative.

Slide 7 - Expenditures Trend - Children and Families

Note:

• ISC was established on November 30, 2017. Therefore, the 2017–18 Actual Expenditures represents a partial year from November 30, 2017 to March 31, 2018.
• 2017–18 to 2022–23 Actual Expenditures as per ISC Departmental Results Reports.
• The financial information from 2017–18 to 2022–23 has been restated to reflect the 2023–24 Departmental Results Framework.
• Overall, actual expenditures for children and families have increased by about 119% over the period from 2018–19 to 2022–23.
• The increase in actual expenditures from 2018–19 to 2021–22 reflects urgent investments in the First Nations Child and Family Services and Income Assistance as well as COVID-19 measures, such as Indigenous Community Support Fund.
• Additional funding is also provided starting 2020–21 to implement the Act respecting First Nations, Inuit and Métis children, youth and families and the ongoing reform of Indigenous Child and Family Services program.
• The significant increase from 2022–23 to 2023–24 Forecast Spending and the significant decrease from 2023–24 Forecast Spending to 2024–25 are primarily due to $23.3 billion for the First Nations child welfare settlement in 2023–24.

Slide 8 - Expenditures Trend - Education

Note:

• ISC was established on November 30, 2017. Therefore, the 2017–18 Actual Expenditures represents a partial year from November 30, 2017 to March 31, 2018.
• 2017–18 to 2021–22 Actual Expenditures as per ISC Departmental Results Reports.
• The financial information from 2017–18 to 2022-23 has been restated to reflect the 2023–24 Departmental Results Framework.
• Overall, actual expenditures for education have increased by about 48% over the period 2018–19 to 2022–23.
• The major increase observed from 2018–19 to 2019–20 is primarily due to investments in First Nations elementary and secondary education provided by Budget 2016.
• The increase in 2020–21 is primarily due to COVID-19 measures, such as:
  • supporting a safe restart in Indigenous communities; and
  • supporting students and youth.
• The increase from 2021–22 to 2023–24 Forecast Spending is primarily due to a net increase in funding for elementary and secondary education which is being partially offset by sunset of funding related to COVID measures.
• The decrease from 2023–24 Forecast Spending to 2024–25 is due to a net decrease in funding for elementary and secondary as well as post-secondary education.

Slide 9 - Expenditures Trend - Infrastructure and Environments

Note:

• ISC was established on November 30, 2017. Therefore, the 2017–18 Actual Expenditures represents a partial year from November 30, 2017 to March 31, 2018.
• 2017–18 to 2021–22 Actual Expenditures as per ISC Departmental Results Reports.
• The financial information from 2017-18 to 2022–23 has been restated to reflect the 2023–24 Departmental Results Framework.
• Effective July 22, 2019, pursuant to Order in Council P.C. 2019-1109, Individual Affairs and the Lands and Economic Development Programs were transferred from CIRNAC to ISC. Consequently, actual expenditures for the Communities and The Environment program inventory started in 2019–20 and reflected a partial year from July 22, 2019 to March 31, 2020.
• The increase in 2019–20 primarily reflects a transfer of the Lands, Natural Resources and Environmental Management program from CIRNAC to ISC as per Order in Council P.C. 2019–1109, effective on July 22, 2019.
• The increase in 2020–21 primarily due to COVID-19 measures, such as:
  • Indigenous Community Support Fund;
  • public health measures in Indigenous communities,
  • Indigenous mental wellness, and
  • supporting a safe restart in Indigenous communities.
• The increase in 2021–22 is primarily due to investments in Indigenous infrastructure provided by Budget 2021.
• The increase from 2021-22 to 2022-23 and the decrease from 2022–23 to 2023–24 Forecast Spending are primarily due to $2.1 billion for out-of-court settlements in 2022–23.
• The decrease between 2023–24 Forecast Spending and 2024–25 reflects a decrease in funding for the Communities and The Environment as well as the Emergency Management Assistance Programs. This decrease is being partially offset by an increase in funding for the Community Infrastructure Program.

Slide 10 - Expenditures Trend - Economic Development

Note:

• Effective July 22, 2019, pursuant to Order in Council P.C. 2019-1109, Individual Affairs and the Lands and Economic Development Programs were transferred from CIRNAC to ISC. Consequently, the following actual expenditures started in 2019-20 and reflected a partial year from July 22, 2019 to March 31, 2020.
• Community Economic Development and Indigenous Entrepreneurship & Business program inventories.
• 2017–18 to 2022–23 Actual Expenditures as per ISC Departmental Results Reports.
• The financial information from 2017-18 to 2022–23 has been restated to reflect the 2023–24 Departmental Results Framework.
• There are no actual expenditures for Individual Affairs and Economic Development programs in 2017–18 and 2018–19 as a transfer of these programs from CIRNAC to ISC is effective on July 22, 2019 as per Order in Council P.C. 2019–1109.
• The 2019–20 Actual Expenditures for these programs represents a partial year in 2019–20.
• The increase in 2020–21 and 2021–22 is mainly due to COVID-19 measures, such as:
  • supporting Indigenous businesses; and
  • Indigenous communities affected by disruptions to their revenues which are necessary to support programs and services.
• The decrease from 2021–22 to 2022–23 is primarily due to a reduction in funding for COVID-19 measures.
• The decrease from 2023–24 Forecast Spending to 2024–25 is primarily due to sunset of funding to support Indigenous-led businesses (Budget 2021).

Slide 11 - Expenditures Trend — Governance

Note:

• Effective July 22, 2019, pursuant to Order in Council P.C. 2019–1109, Individual Affairs and the Lands and Economic Development Programs were transferred from CIRNAC to ISC. Consequently, the following actual expenditures started in 2019–20 and reflected a partial year from July 22, 2019 to March 31, 2020.
  • Individual Affairs and Statutory, Legislative and Policy Support sub-program inventories are part of the Indigenous Governance and Capacity Supports program inventory
• 2017–18 to 2021-22 Actual Expenditures as per ISC Departmental Results Reports.
• The financial information from 2017-18 to 2022–23 has been restated to reflect the 2023–24 Departmental Results Framework.
• There are no actual expenditures for Individual Affairs and Economic Development programs in 2017–18 and 2018–19 as a transfer of these programs from CIRNAC to ISC is effective on July 22, 2019 as per Order in Council P.C. 2019–1109.
• The 2019–20 Actual Expenditures for these programs represents a partial year in 2019–20.
• Actual expenditures is steadily increased by 14% from 2020–21 to 2022–23.
• The increase from 2022–23 to 2023–24 Forecast Spending is primarily due to funding to:
  • adjust the new fiscal relationship grant for inflation and population growth (Budget 2021); and
  • support community development for First Nations (Budget 2021).
• The decrease from 2023–24 Forecast Spending to 2024–25 is primarily due to a net decrease in funding for the Indigenous Governance and Capacity Sub-Program.

Slide 12 - Grant to support the new fiscal relationship (NFR) for First Nations under the Indian Act

• The NFR grant, implemented in 2019–20, is a funding mechanism intended to provide increased predictability and facilitate greater flexibility of First Nations to address local needs.
• 85 First Nations in 2019–20, 111 in 2020–21, 117 in 2021–22 and 130 in 2022–23 received funding from the NFR Grant.
• The Department is anticipating 143 First Nations in 2023–24 to receive funding from the NFR Grant.
• The Department has a target of 161 eligible First Nations communities for 2024–25.

Background

The Main Estimates Part II for all departments were tabled in the House of Commons by the President of the Treasury Board on February 29, 2024. For 2024–25, ISC's Main Estimates is $21.0 billion of which $6.3 billion or 29.8% is intended for health, $5.4 billion or 25.8% is for children and families, $4.8 billion or 22.9% is for infrastructure and environments, $3.5 billion or 16.4% is for education and the remaining $1.0 billion or 5.1% will be to support economic development, governance and internal services.

The department's net decrease in the Main Estimates, compared to last year's Main Estimates, is about $18.6 billion, or 46.9 percent. The decrease is primarily due to the 2023–24 one-time inclusion of $20.0 billion towards the First Nations child welfare settlement. The settlement is to compensate First Nations children and families for the harm caused by the discriminatory underfunding of the First Nations Child and Family Program.

Major changes:

• a net decrease of $19.9 billion for child and family services is primarily due to $20.0 billion* for the First Nations child welfare settlement in 2023–24;
• a net decrease of $263.1 million for income assistance is primarily due to sunset of funding for the Income Assistance – Immediate Supports;
• a net decrease of $167.6 million for public health promotion and diseases prevention is primarily due to:
  • a net decrease in funding for mental wellness, including sunset of funding related to distinctions-based mental wellness and trauma-informed health and cultural supports, mental health and wellness (Budget 2021) and legacy of residential schools (Budget 2022); and
  • a net increase in funding for communicable disease control and management.
• a net increase of $248.7 million for health systems support is mainly due to funding for the First Nations Health Authority;
• a net increase of $675.8 million for community infrastructure is primarily due to:
  • the one-time investment in the Northern Ontario Grid Connection Project; and
  • a net decrease in funding related to infrastructure projects in Indigenous communities.
• a net increase of $725.6 million for Jordan's Principle and the Inuit Child First Initiative is primarily due to a net increase in core funding for the continued implementation of Jordan's Principle; and
• a net increase of $69.2 million for remaining programs with changes in the approved funding levels.

Federal programs directed to Indigenous peoples will continue to play an important role in building strong communities, and continued long-term investments are essential to enable us to fulfill our commitment to improve the quality of life for Indigenous peoples.

In effect, about 96% of the $21 billion included in the 2024–25 Main Estimates is committed to support or deliver services to Indigenous peoples of which 87% will flow through transfer payments in order to fund services delivered by First Nations community governments, Tribal Councils, health authority, etc. 9% through operating to fund health-related goods and services not insured by provinces and territories or other private insurance plans. The department also employs nurses, health professionals and teachers to directly provide various health and education services.

The remaining 4% of resources are used for program management and delivery (3%) and administrative overhead (1%).

Key Messages

• Funds totaling $26.6 billion will sunset in 2023-24, $3.6 billion in 2024-25, $154.5 million in 2025-26 and $1.1 billion in 2026-27.
• Although the sunset in the funding amount is significant in 2023-24, it is primarily due to the one-time payment of $23.3 billion for the First Nations child welfare settlement.
• The sunset of funding in 2024-25 is primarily due to the one-time investment to the Northern Ontario Grid Connection Project ($1.5 billion) and for the implementation reforms of the First Nations Child and Family Services Program ($1.3 billion).
• In 2025-26, the sunset of funding is mainly due to primary care funding to improve health outcomes in Indigenous communities ($79.4 million) and funding for the Pathways to Safe Indigenous Communities initiative ($30.7 million), as announced in Budget 2021.
• The sunset of funding in 2026-27 is primarily due to housing funding for Indigenous community infrastructure as provided by Budget 2022 ($717.1 million).
• The Department works collaboratively with partners to improve access to high quality services for First Nations, Inuit and Métis.
• Note that some of sunsetters have been renewed through Budget 2024.
• Decisions on the renewal of other sunset initiatives will be taken in consideration in future budgets and reflected in future estimates as appropriate.

Background

The significant payment of $23.3 billion in 2023-24, as with other sunsetter initiatives, have time-limited authorities and/or funding and are developed for a specific purpose and timeframe. Other ISC sunsetter initiatives may arise from emergency events such as floods, fire disaster and hurricanes.

However, it should be noted that there are sunsetting initiatives for which the department is working towards funding renewal where the objectives are consistent with government authorities and priorities and are aligned with the department's commitment to ensure sustainability of ongoing service delivery; respond to needs and emerging pressures; and optimize the funding and benefits to Indigenous communities.

Current Status

Some of sunsetters in 2023-24 have been renewed through Budget 2024, mainly includes:

• $630.2 million over two years, starting in 2024-25, to support Indigenous people's access to mental health services, including through distinctions-based mental wellness strategies;
• $562.5 million in 2024-25 to support medically necessary services through the Non-Insured Health Benefits Program, which supports a range of benefits for First Nations and Inuit people, including mental health services, medical travel, medications, and more;
• $350 million over five years, starting in 2024-25, to renew Canada's commitment to Indigenous Financial Institutions, including $30 million over five years for the Métis Capital Corporations which have, for decades, provided critical support to Métis entrepreneurs and businesses;
• $167.6 million over five years, starting in 2024-25, to combat anti-Indigenous racism in health care to help ensure Indigenous Peoples are treated with the respect and safety they deserve;
• $145.2 million over five years, starting in 2024-25, for ISC and CIRNAC to work with First Nations to develop greater climate resiliency and deploy structural mitigation strategies that protect communities, homes, and essential infrastructure from climate disasters, including $10.4 million for Modern Treaty and Self-Governing First Nations;
• $117.6 million over three years starting in 2024-25 for case management and pre-employment supports to increase access to good job opportunities;
• $104.9 million over five years, starting in 2024-25, for health transformation initiatives to support First Nations self-determination in the design and delivery of health services in their communities.

The Department will continue working with central agencies to renew other sunsetters through future Budget exercises, such as Child and Family Services and other infrastructure projects.

Key Messages

• Indigenous Services Canada is planning the following spending reductions.
  • 2023-24: $16,999,000
  • 2024-25: $64,716,653
  • 2025-26: $108,603,653
  • 2026-27 and after: $170,702,653
• Indigenous Services Canada will achieve these reductions by doing the following:
  • Internal services and operational efficiencies;
  • Public servant travel;
  • Departmental transformation;
  • Reducing grants and contributions following discussions with partners, by targeting areas that will minimize impacts on communities and/or in areas where the funding has not been fully utilized.
• A portion of funding for the above planned spending reductions will be frozen while, in collaboration with Indigenous partners and stakeholders, additional proposals for savings are completed by Fall 2024.
• These savings will not impact direct service delivery to First Nations and Indigenous communities. Further information on the reductions for 2024–25 and future years is available in the Departmental Plan and Main Estimates 2024–25.

Background

• In Budget 2023 the government announced the Refocusing Government Spending Initiative to refocus $14.1 billion over 5 years (2023–24 to 2027–28) and $4.1 billion annually thereafter. Spending is being refocused from 2 categories:
  • Professional Services and Travel
  • Operations and Transfer Payments
• Certain spending was excluded from the Initiative, including direct benefits to Canadians or transfers to Indigenous communities and other orders of government.
• As part of the 2023-24 Supplementary Estimates (B) $16,999,000 was placed in a frozen allotment.
• In late fall 2023, Indigenous Services Canada's Minister submitted proposals for spending reductions to the Treasury Board Secretariat for review and approval.
• As part of meeting this commitment, Indigenous Services Canada is planning the following spending reductions.
  • 2023-24: $16,999,000
  • 2024-25: $64,716,653
  • 2025-26: $108,603,653
  • 2026-27 and after: $170,702,653
• Indigenous Services Canada will achieve these reductions by doing the following:
  • Internal services and operational efficiencies;
  • Public servant travel;
  • Departmental transformation;
  • Reducing grants and contributions following discussions with partners, by targeting areas that will minimize impacts on communities and/or in areas where the funding has not been fully utilized.
• A portion of funding for the above planned spending reductions will be frozen while, in collaboration with Indigenous partners and stakeholders, additional proposals for savings are completed by Fall 2024. 

Current Status

• Indigenous Services Canada undertook a principle-based and thoughtful approach to its internal review as part of the Refocusing Government Spending Initiative to minimize impacts on Indigenous partners and communities and avoid any negative impacts to direct service delivery.
• The overall savings identified as part of the Refocusing Government Spending Initiative for each department has been publicly released in 2024–25 Main Estimates, which has been tabled by the President of the Treasury Board. Additional details about Indigenous Services Canada's savings has been presented in the Departmental Plan (DP), as well as in the Main Estimates.

Key Messages

• The 2022-23 Departmental Results Report was the last to report against ISC's former Departmental Results Framework (DRF). To better support the department's mandate, ISC's DRF moved to a single core responsibility in 2023-24 that focuses on Indigenous Well-Being and Self-Determination.
• In 2022-23, the COVID-19 pandemic impacted establishing targets in co-development with Indigenous partners, and competing priorities resulted in insufficient data being available for reporting on certain indicators.
• As of March 2024, Departmental Result indicators now have established targets and dates to achieve (with the exception of "Percentage of First Nations communities offering family support services aimed at keeping families together", as the program is dormant.)
• ISC aims to continue to close socio-economic gaps and create a more equitable Canada in 2024-25, focusing on trust-based reconciliation with Indigenous partners.

Background

2022-23 Departmental Results Report (tabled November 9, 2023)
Actual results measured through 43 Departmental Results indicators.

6 targets were met:

• There was an increase of First Nation and Inuit who received at least one non-insured health benefit: 72.1% (2021-22) increased to 74% (2022-23) (74% target met).
• In 2022-23, 42% of First Nations adults with diabetes moved off insulin. Using 2017 data as a baseline, five years of tracking has shown success (30% target met).
• 81% of First Nations and Inuit communities had access to mental wellness team services. This was an increase from 75% in 2021-22 (55% target met).
• 84% of health facilities achieved "good" condition ratings (75% target met).
• 68.2% of First Nations communities had non-government revenues represent 25% or more of total revenues (40% target met).
• 130 of eligible First Nations communities had opted in to a grant to support the new fiscal relationship, showing an increase of 13 since 2021-22 (127 target met).

5 targets were not met:

• Although a positive result, only 98% of prior approval requests for medication coverage were completed within 24 hours (100% target not met).
• The issuance of Secure Certificates of Indian Status dropped from 95.26% (2021-22) to 87.58% (2022-23) due to an influx of applications received from the lifting of COVID-19 health measures (90% target not met).
• Due to complexities surrounding recovery of some significantly impacted First Nations, 89.5% of long-term evacuees returned home or had a scheduled date within two years after their evacuation (up 20% from 2021-22) (95% target not met).
• While there was an increase of 1.4% since 2021-22, due to COVID-19 impacts and other community priorities, 26.1% of First Nations had community-led Land use plans (28.5% target not met).
• High risk contaminated sites on reserve that had clean-up or containment occurring to reduce risk, dropped from 34.9% (2021-22) to 17.6% due to the expansion of the Federal Contaminated Sites Action Plan eligibility guidelines, increased project costs due to inflation, supply chain issues, and the addition of new high priority sites to the program inventory (29% target not met).

In addition:

• Of the remaining indicators, 20 targets are to be achieved in the future. The last 12 did not have results available at time of reporting due to delays in recipient reporting and data finalization. Some also are undergoing program reform and working to establish new performance measures/baselines.
• For 2022-23, ISC successfully awarded 17.68% of its federal contracts to certified Indigenous businesses – achieving a result above the 3% target.
• Moving into 2023 24, the indicators associated with the departmental result "Indigenous self-determined services are improving outcomes for communities" were woven into the new DRF with the aim to measure progress on service delivery transfer to First Nations across all service areas.

Current Status

2024-25 Departmental Plan (tabled February 29, 2024)
Results will be measured through 34 Departmental Result indicators.

• Distinctions-specific progress towards increasing positive outcomes by using data from self-reported health surveys that ask First Nation and Inuit respondents to rate their physical health (44% by March 2028) and mental health (First Nations - 55% and Inuit - 50% by March 2028).
• The percentage of First Nations on-reserve adults who rate the quality of health care services delivered in their community as "good" or "excellent" (57% by March 2028).
• Progress on the transfer of health services to First Nations through funding agreements and the 10-year New Fiscal Relationship Grant target based on current program funding to develop and maintain an Indigenous-led health plan (95% by March 2025).
• The effectiveness of the Income Assistance program's reach by monitoring the level of income assistance being delivered on reserve to support community needs (Maintain or decrease results).
• Prevention-based supports for the proportion of First Nations children on reserve in care (Maintain or decrease results) and those who are placed with family members (Maintain or increase results).
• The number of First Nations under transformative education models such as regional education agreements as an indicator of First Nations control of First Nations education (Maintain or increase results).
• For on-reserve First Nations students, both "on time" and "extended time" graduation rates to help evaluate whether the secondary school graduation rate gaps among First Nations students and non-Indigenous students are closing (Maintain or increase results).
• The number of funded First Nation (4,110-4,494 by March 2025), Inuit (50 by March 2025) and Métis students (Maintain or increase results) who graduate with a post-secondary degree, diploma, or certificate as a key measure that impacts labour force participation.
• Condition ratings of ISC-funded infrastructure investments to determine if investments are addressing long-standing needs for First Nation communities on reserve (by March 2025 - health facilities 75%; by March 2026 - education facilities 60% and Other community infrastructure 45%).
• Whether First Nations communities have reliable and sustainable water infrastructure by identifying the percentage of water (70% by March 2026) and wastewater (69% by March 2026) systems with low-risk ratings.
• ISC will continue to support increasing the total percentage of contracts with Indigenous businesses (15% by March 2024).

Key Messages

• Indigenous Services Canada is committed to fostering economic reconciliation leading to opportunities for Indigenous businesses through the mandatory minimum target of 5% of the dollar value of federal contracts awarded to Indigenous businesses. The Department achieved an overall result of 17.68% in 2022/23 representing $43.6M in contract value.
• The Department acted promptly in complying with the suspension orders issued by Public Works and Procurement Services Canada against Dalian Enterprises, Coradix Technologies and GC Strategies..
• At the time of the suspension, the Department had 13 active contracts worth a potential $35M with 56 active Task Authorizations totaling $9.7M with Dalian and 8 contracts worth a potential $33.5M with 30 active Task Authorizations totaling $4.6M with Coradix. The Department did not have any active contracts with GC strategies.
• Indigenous Services Canada obtained various IT services from contractors that worked for these companies. ISC is actively working on contingency plans to minimize the impact where possible, but there may be delays on ongoing and future projects, particularly in areas where ISC may not have the equivalent technical expertise in-house.
• The Department takes the nature of the concerns raised at the Government Operations and Estimates Committee very seriously and will take all necessary steps and follow all direction provided by Public Services and Procurement Canada, the Office of the Comptroller General and others to ensure that the utmost rigor is applied to all of our contracting activities.

Background

• Dalian, Coradix and GCstrategies are under scrutiny over their involvement in the development of the ArriveCan app, in particular with respect to the number and value of contracts received since 2016 as well as Dalian's president and founder being a public servant of the Department of National Defence.
• As a result, Public Services and Procurement Canada suspended Dalian, Coradix and GCstrategies from continuing work on federal contracts and from participating in any new procurement opportunities.

Current Status

• The Department is following all direction as required for the provision of documents as requested by the Government Operations Committee as well as responding as required to additional Order Paper Questions.
• Following PSPC's lead, Indigenous Services Canada terminated and will not issue any further contracts with Dalian, Coradix or GC Strategies.
• The Department will ensure that all contracting rules and regulations, including the new requirements for the issuance of task authorizations are respected.
• The Department will continue to work toward solutions to minimize impact on its operations as it relates to IT services in support of Departmental objectives.

Child and Family Services

Implementation of C-92 [redacted]

• Budget 2024 proposes to provide $1.8 billion over 11 years, starting in 2023-24 to support communities in exercising jurisdiction under An Act respecting First Nations, Inuit and Métis children, youth and families, including the first Inuit agreement to support community-led, prevention-based solutions to reduce the number of children in care.

Implementation of C-92 [redacted]

• [redacted]

Education and Social Development Programs and Partnerships

First Nations Elementary and Secondary Education [redacted] - $649.4 M over 2 years

• Budget 2024 proposes new investments in First Nations' kindergarten to grade 12 education programming and infrastructure, including, $649.4 million over two years, starting in 2024-25, to improve elementary and secondary education on reserve, and ensure funding formulas meet the needs of growing communities.

[redacted] Supports to [redacted] Post-Secondary Students [redacted] - $242.7 M over 3 years

• Budget 2024 proposes to increase support for First Nations post-secondary students: 242.7 million over three years, starting in 2024-25, to increase access to post-secondary education for First Nations students through the Post Secondary Student Support Program.

[redacted] Income Assistance On-Reserve - $927.3 M over 5 years with $169 M ongoing

• $596.2 million over five years, starting in 2024-25, and $119.2 million per year ongoing to provide income support on reserve and expand programming to meet demand;
• $117.6 million over three years starting in 2024-25 for case management and pre-employment supports to increase access to good job opportunities; and,
• $213.5 million over five years, starting in 2024-25, and $49.8 million per year ongoing to implement income supports for eligible persons with disabilities aligned with those provided in all provinces and Yukon. This unprecedented new support will help ensure Indigenous persons with disabilities have a fair chance at success.

[redacted] Family Violence Prevention [redacted] - $27 M over 2 years

• Funding proposed for ISC for the operation of emergency shelters and transitional homes on reserve, and to renew funding for the Moose Hide Campaign.

Supporting Urban Indigenous Peoples (not associated with proposal) - $60 M over 2 years

• $60 million over two years, starting in 2024-25, to support Friendship Centres, across the country, which provide much-needed supports and services to members of their communities across a range of areas including health, housing, education, recreation, language, justice, employment, economic development, culture, and community wellness.

First Nations Inuit Health Branch

Sustaining Support for Modernized Mental Wellness and Problematic Substance Use Treatment Services - $630.2 M over 2 years

• Budget 2024 proposes to provide $630.2 million over two years, starting in 2024-25, to support Indigenous people's access to mental health services, including through distinctions-based mental wellness strategies.

Health Transformation - $105 M over 5 years

• $104.9 million over five years, starting in 2024-25, for health transformation initiatives to support First Nations self-determination in the design and delivery of health services in their communities.

Funding to Maintain Non-Insured Health Benefits - $562.5 M over 1 year

• $562.5 million in 2024-25 to support medically necessary services through the Non-Insured Health Benefits Program, which supports a range of benefits for First Nations and Inuit people, including mental health services, medical travel, medications, and more.

[redacted]

• $390.4 million over four years, starting in 2024-25, to build or renovate health facilities, including to support the Virtual Health Hub led by the Saskatchewan Indian Institute of Technologies. This funding will also improve the safety of primary care workers in remote and isolated on-reserve First Nations communities.

Addressing Anti-Indigenous Racism in Health Care - $167.5 M over 5 years

• Budget 2024 proposes to provide $167.6 million over five years, starting in 2024-25, to combat anti-Indigenous racism in health care to help ensure Indigenous Peoples are treated with the respect and safety they deserve.

Renewing Canada's Commitment to Inuit Children (ICFI) - $121.7 over 1 year

• Budget 2024 proposes to provide $167.5 million over two years, starting in 2023-24, to ensure Inuit children can access the health, social, and educational services they need, when they need them. The government continues to work with Inuit partners to advance the long-term vision of the Inuit Child First Initiative so that Inuit children will continue to receive timely, high-quality services.

Targeted Investments in Priority Health Facilities in First Nations Communities - $241.7 M over 3 years

• $390.4 million over four years, starting in 2024-25, to build or renovate health facilities, including to support the Virtual Health Hub led by the Saskatchewan Indian Institute of Technologies. This funding will also improve the safety of primary care workers in remote and isolated on-reserve First Nations communities.

Grassy Narrows - $57.5 M over 3 years [redacted]

• $57.5 million over three years, starting in 2024-25, which builds on previous federal investments to construct a mercury care home in Grassy Narrows First Nation.

Lands and Economic Development

Delivering Regional Clean Energy Initiatives For Indigenous Communities - $36 M over 3 years

• $36 million, over three years, starting in 2024-25, to renew support for the Strategic Partnerships Initiatives' Clean Energy program to promote Indigenous participation in clean growth opportunities.

Funding to Support the Indigenous Tourism Association of Canada – 2.5 M over 1 year

• $2.5 million in 2024-25, to continue supporting the Indigenous tourism industry through the Indigenous Tourism Association of Canada.

Funding for the Aboriginal Entrepreneurship Program and Recapitalization of the Metis Capital Corporations (AEP and MCCs) - $350 M over 5 years

• $350 million over five years, starting in 2024-25, to renew Canada's commitment to Indigenous Financial Institutions, including $30 million over five years for the Métis Capital Corporations which have, for decades, provided critical support to Métis entrepreneurs and businesses.

Regional Operations

[redacted] Indian Act Registration Services (S-3) - $53 M over 5 years with $10.6 M ongoing

• Line item - Funding proposed for ISC to deliver registration services under the Indian Act.

[redacted] Education Facilities [redacted]

• $545.1 million over three years, starting in 2024-25, for K-12 infrastructure to build and renovate safe and healthy learning environments for First Nations students.

Climate Resiliency – Structural Mitigation - $77.6 M over 5 years (ISC portion)

• $145.2 million over five years, starting in 2024-25, for Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to work with First Nations to develop greater climate resiliency and deploy structural mitigation strategies that protect communities, homes, and essential infrastructure from climate disasters, including $10.4 million for Modern Treaty and Self-Governing First Nations.

Climate Resiliency – Winter Roads - $89 M over 4 years

• Line item - Funding proposed for ISC to support the Hatchet Lake All-seasons Road Project in Saskatchewan and the Berens River Bridge and Road Project in Ontario to provide safe, reliable road access to neighboring First Nations communities

Renewal of Sunsetting Funding for Indigenous Governance and Capacity - $275 M over 2 years

• $275 million over two years, starting in 2024-25 to Indigenous Services Canada to maintain Indigenous Governance and Capacity programs and support governance capacity development.

Accelerating First Nations Housing Investments - $426 M over 5 years (ISC portion)

• Budget 2024 proposes investments of $918 million over five years, starting in 2024-25, to Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to accelerate work in narrowing First Nations, Inuit, and Métis housing and infrastructure gaps. ($426 million for First Nations on reserve, remaining funding is for Inuit, Métis and self-governing and modern treaty First Nations).

FireSmart Program Renewal - $57.2 M over 5 years

• $145.2 million over five years, starting in 2024-25, for Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to work with First Nations to develop greater climate resiliency and deploy structural mitigation strategies that protect communities, homes, and essential infrastructure from climate disasters, including $10.4 million for Modern Treaty and Self-Governing First Nations ($57.2 for ISC FireSmart, as per decision).

Structural Fire Protection - $20.9 M over 3 years

• $20.9 million over three years, starting in 2024-25, for Indigenous Services Canada to support the First Nations Fire Protection Strategy, 2023 to 2028 by distributing fire alarms and fire extinguishers to homes and community facilities on-reserve, as well as fire-related education programs.

Strategic Policy and Partnerships

Partnership with the First Nations Financial Management Board on Capacity Building and the New Fiscal Relationship - $12.6 M over 2 years

• $12.6 million, over two years, starting in 2024-25, to Indigenous Services Canada to continue implementing and advancing the New Fiscal Relationship with First Nations communities.

Other Government Department (OGD) with Indigenous Services Canada Funding

ECCC – LED - Federal Contaminated Sites Action Plan Phase V [redacted]

• [redacted]

ESDC – ESDPP – Increasing Support for FNIYES - $150.7 M over 1 year

• $150.7 million in 2025-26, for the Youth Employment and Skills Strategy Program to provide job placements and employment supports to youth. (ISC allocation TBC)

ESDC – ESDPP - National School Food Policy and programming, including a universal breakfast program for First Nations on-reserves and Modern Treaty Holders and Self-Governing Nations - $1,000 M over 4 years

• Budget 2024 announces the creation of a National School Food Program, which will provide $1 billion over five years to Employment and Social Development Canada, Crown-Indigenous Relations and Northern Affairs Canada, and Indigenous Services Canada, starting in 2024-25, to work with provinces, territories, and Indigenous partners to expand access to school food programs. This includes investments for First Nations, Inuit, and Métis communities as well as Self-Governing and Modern Treaty Partners, many of whom have some of the highest rates of food insecurity in Canada. (ISC allocation TBC)

Key Messages

• Indigenous Services Canada co-developed a policy framework to transform the funding approach for First Nations elementary and secondary education on-reserve, providing at a minimum, funding that is comparable to what students receive in provincial schools, plus additional investments to address First Nations' unique circumstances.
• Supporting the implementation of this co-developed approach, Budget 2024 proposes to provide $649.4 million over two years, starting in 2024-25, to support elementary and secondary education on-reserve.
• In addition, Budget 2024 proposes to provide $1 billion over five years starting in 2024-25 to create a National School Food Program, which will include investments for First Nations, Inuit and Metis communities, as well as self-governing and modern treaty partners. Budget 2024 also proposes to invest $545.1 million over three years, starting in 2024-25, to build and renovate safe and healthy learning environments for First Nations students.
• The transformed policy and funding approach to Elementary and Secondary Education also includes an expanded effort to support the regional and local diversity of First Nations education systems through the development and establishment of regional education agreements that are tailored to the particular goals, needs and priorities of First Nations.
• To date, 10 regional education agreements have been signed, covering approximately 25,000 students in five provinces, including one in British Columbia, two in Alberta, five in Saskatchewan, one in Quebec and one in New Brunswick.

Background

• Indigenous Services Canada's Elementary and Secondary Education Program supports Kindergarten to Grade 12 education for eligible First Nations students who are ordinarily resident on-reserve, by providing funding directly to First Nations recipients and education organizations designated by First Nations.
• Under this approach, core funding for First Nations elementary and secondary education is allocated through interim regional funding formulas that reflect student enrolment and provincial rates for education, plus adaptations and common investments beyond provincial comparability, including language and culture programming, full-day kindergarten for children aged four and five, and before- and after-school programming.
• This transformed funding approach for elementary and secondary education programming has resulted in an 80% funding increase between 2015-16 and 2022-23. Since 2015, the Government of Canada has invested over $5.5 billion in new funding for elementary and secondary education to help First Nations children living on-reserve receive high-quality education.
• Regional education agreements support First Nation-designed education systems to improve student success through the vision and goals set by First Nations for elementary and secondary education.
• These agreements are tailored to the local or regional context and outline First Nations' design, implementation and management plans for their education systems, including funding required to achieve better student outcomes, and formalizing Canada's commitment to provide the required resources.
• In July 2022, Indigenous Services Canada and the First Nations Education Council, representing 22 communities in Quebec, signed a regional education agreement that is supported by a First Nation-designed funding formula to address the specific needs of students and improve education outcomes. Budget 2022 committed $310.6 million over five years to implement this agreement.
• To date, 10 regional education agreements have been signed, covering approximately 25,000 students:
  • British Columbia Tripartite Education Agreement (2018) – This agreement covers 153 First Nations and is supported by a funding model based on provincial funding and specific investments recognizing the unique needs of First Nation students.
  • Kee Tas Kee Now Tribal Education Authority in AB (2019) – The agreement covers five First Nations and funding is based on the interim regional funding formula.
  • Sunchild First Nation Regional Education Agreement in AB (2019) – The agreement covers one First Nation and funding is based on the interim regional funding formula.
  • Athabasca Denesuline Education Authority in SK (2019) – The agreement covers three First Nations and funding is based on the interim regional funding formula.
  • Peter Ballantyne Cree Nation Education Authority in SK (2020) – This agreement covers one First Nation and funding is based on the interim regional funding formula.
  • Whitecap Dakota Tripartite REA in SK (2020) – This agreement covers one First Nation and funding is based on the interim regional funding formula.
  • Treaty Education Alliance in SK (2021) – This agreement covers four First Nations and funding is based on the interim regional funding formula.
  • Elsipogtog First Nation Education Authority in NB (2021) – This agreement covers one First Nation and funding is based on the interim regional funding formula.
  • First Nations Education Council in QC (2022) – This agreement covers 22 First Nations and is based on a funding formula developed by the First Nations Education Council.
  • East Central First Nation Education Authority in SK (2023) – This agreement covers one First Nation and funding is based on the interim regional funding formula.
  • Source: Student data is from the Education Information System (EIS) for reports submitted to Indigenous Services Canada and accepted (final) on April 1, 2023.
• Through 2023-2024 Supplementary Estimates (B), Indigenous Services Canada accessed $109.6 million, and accessed an additional $55 million through Supplementary Estimates (C) to address critical program integrity pressures, for an overall cost of approximately $3 billion annually for the delivery of elementary and secondary education for First Nations students on-reserve.

Current Status

• Funding for Elementary and Secondary Education on-reserve will be provided via existing funding agreements.
• Indigenous Services Canada continues to work in close collaboration with First Nations partners to refine the funding formulas and identify gaps and priorities.
• Discussions are currently underway with 50 First Nations and First Nations education organizations to advance new regional education agreements across the country.

Key Messages

• Indigenous Services Canada provides funding and supports through distinctions-based Post-secondary Education Strategies for First Nations, Inuit and the Métis Nation. The department continues to work collaboratively with Indigenous partners to ensure that First Nations, Inuit and Métis Nation learners have access to the same high-quality post-secondary education services and opportunities as non-Indigenous Canadians. Indigenous Services Canada is committed to supporting Indigenous control of Indigenous education.
• Budget 2024 proposes to invest $242.7 million over three years, starting in 2024-25, for access to post-secondary education for First Nations students through the Post-Secondary Student Support Program.
• With this investment, the Government of Canada recognizes that access to post-secondary education funding is crucial for Indigenous students to achieve their potential.
• Budget 2024 investments will help produce graduates and help them earn higher incomes, fill critical skills gaps in the workforce, and contribute to their communities' economic vitality.

Background

First Nations

• The First Nations Post-Secondary Education Strategy comprises 4 components:
  • Post-Secondary Student Support Program (PSSSP): The PSSSP aims to improve socio-economic outcomes for First Nations by supporting First Nations in providing eligible students with funding to access education opportunities at the post-secondary level, consistent with the principle of First Nations control of First Nations education. The overall aim of the program is to provide an inclusive and quality education by closing the education gap between First Nations and non-Indigenous Canadians.
  • Universities and College Entrance Preparation Program (UCEPP): The UCEPP provides non-repayable financial support for First Nations students who are enrolled in accepted university and college entrance preparation programs. This enables them to attain the academic level required for entrance into degree and diploma credit programs, as prioritized and directed by First Nations.
  • Post-Secondary Partnerships Program (PSPP): The PSPP supports First Nations to define their own partnerships with institutions to increase the availability of post-secondary education programs tailored to First Nations cultural and educational needs. The overall aim of the program is to increase the number of First Nations students pursuing post-secondary education and thereby contribute to closing the education attainment gap.
  • Adult Education: Adult Education programming aims to ensure all First Nations across the country have access to supports for adult education regardless of provincial levels of support. This option to use a Post-Secondary Education implementation mechanism may better enable First Nations Institutes to offer secondary programming to eligible adult First Nations students, namely those ordinarily resident on reserve or in the Yukon and in the Northwest Territories looking to complete or upgrade their secondary education.
• This investment builds on those from Budget 2019, which allocated $320 million over 5 years to renew and expand funding for the First Nations Post-Secondary Student Support Program (funding which sunset March 31, 2024), $125.5 million over 10 years and $21.8 million ongoing for a new Inuit Post-Secondary Education Strategy, and $362 million over 10 years and $40 million ongoing for a new Métis Nation Post-Secondary Education Strategy.

Current Status

First Nations

• Funding for First Nations post-secondary education will be provided via existing funding agreements. ISC continues to work in close collaboration with First Nations to review post-secondary education funding and to identify priorities.

Key Messages

• Adequate housing is also an important component of closing the socio-economic gaps.
• Since 2015, the federal government has committed more than $6.7 billion to support housing in Indigenous communities.
• The federal government is also investing $4.3 billion to advance an Urban, Rural, and Northern Indigenous Housing Strategy (the Strategy).
• The Strategy will complement the federal government's previous $6.7 billion to close the Indigenous housing gaps.
• The Government of Canada will work with First Nations, Inuit, Métis, as well as Modern Treaty and Self Governing Indigenous Government partners on their distinctions-based housing strategies to support their people living in urban, rural and northern areas.
• Given the significant housing needs of Indigenous Peoples living in urban, rural, and northern areas in Canada, including higher incidences of homelessness, it was recognized that shorter-term measures were also needed, separate from the Urban, Rural, and Northern Indigenous Housing Strategy.
• As such, on June 8, 2023, Indigenous Services Canada (ISC) announced immediate funding in the amount of $287.1 million being delivered by the National Indigenous Collaborative Housing Incorporated (NICHI) to address the critical need for safe and affordable urban, rural and northern Indigenous housing projects.

Background

• The Government of Canada recognizes that Indigenous Peoples living in urban, rural, and northern areas face significant housing needs and that there is an urgent need to act now.
• As such, on June 8, 2023, Indigenous Services Canada (ISC) announced immediate funding in the amount of $287.1 million to address the critical need for safe and affordable urban, rural and northern Indigenous housing projects.
• Budget 2023 proposed an additional $4 billion over 7 years starting in 2024-25 for the implementation of the broader Strategy.
• In implementing the Strategy, the Government of Canada will work directly with First Nations, Inuit, and Métis partners and Modern Treaty and Self Governing First Nations to reach funding agreements to support their members, citizens and beneficiaries living in urban, rural and northern areas.
• These funding initiatives are part of the Government of Canada's commitment to address the social determinants of health and advance self-determination in alignment with the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDA) and Articles 21 and 23.

Current Status

• The funding is being prioritized and rolled across the country through an Open call-out for Expression of Need, which was completed on January 12, 2024. Further details on the application process and funding announcements will be available on the NICHI website.

Key Messages

• ISC supports First Nations (status and non-status), Inuit and Métis peoples by providing financial support to over 200 urban Indigenous service delivery organizations, including Friendship Centres, that serve well-over one million people per year across Canada. These organizations help address the critical needs faced by Indigenous Peoples in urban centres, including supporting the most vulnerable and at risk urban Indigenous populations (women, girls, youth, seniors, 2SLGBTQ+ peoples, persons with disabilities, and persons with addictions).
• ISC understands that the urban Indigenous population is one of the fasting growing segments of the Canadian population, and that there continues to be a significant demand for additional resources to address urban Indigenous issues.
• As demonstrated through the Budget 2024 announcement, Canada remains committed to working in collaboration with Indigenous partners in urban spaces to support and improve the quality of life of First Nations, Inuit and Métis peoples, and to ensure that urban Indigenous Peoples have safe and accessible spaces to access the delivery of high-quality, culturally-relevant services.

Background

• The urban Indigenous population includes peoples from all distinctions (First Nations, Inuit and Métis) and is expected to remain one of the fastest growing segments within Canada, with a 9.4% increase in population from 2016 to 2021. In 2021, approximately 801,045 Indigenous Peoples lived in a large urban centre, accounting for 44.3% of the total Indigenous population. This is a 12.5% increase from 2016 (Census 2021). Almost half (46.2%) of the Indigenous population is less than 25 years old, compared with 29.5% for non-Indigenous people.
• Urban Programming for Indigenous Peoples (UPIP) is ISC's only program that specifically focuses on Indigenous people living in, transitioning to, or accessing services in urban centres. The Program consists of six funding streams: organizational capacity; programs and services; coalitions; research and innovation; infrastructure; and housing.

Current Status

• UPIP is aiming to secure the $60 million announced in Budget 2024 through Supplementary Estimates B.
• While the Budget 2024 top-up will go a long way to further support Indigenous Peoples in urban centres, the amount is insufficient to meet the needs of this growing population. With that in mind, UPIP anticipates submitting a Budget 2025 proposal seeking increased and longer term funding to support Indigenous Peoples in urban centres.

Key Messages

• The Income Assistance Program funding helps First Nations communities provide income assistance to individuals living on-reserve and case management supports for individuals transitioning to education or employment.
• Budget 2024 proposes $927.3 million in investments for the on-reserve Income Assistance Program over five years starting in 2024-25, and $169 million ongoing to provide income support on-reserve and expand programming to meet demand. This will address the urgent and essential needs of Income Assistance clients who are living in poverty on-reserve and continue case management and pre-employment supports.
• As part of that investment, Budget 2024 is providing new funding to Income Assistance recipients with disabilities, ensuring they are able to not only cover essential living expenses like food, clothing and shelter, but also the many other disability-related costs that often prevent persons with disabilities from full, equal participation in the social and economic life of their communities.
• More specifically, Budget 2024 includes:
  • $596.2 million over five years, starting in 2024-25, and $119.2 million per year ongoing to provide income support on-reserve and expand programming to meet demand;
  • $117.6 million over three years starting in 2024-25 to renew sunsetting funding for case management and pre-employment supports to increase access to good job opportunities; and
  • $213.5 million over five years, starting in 2024-25, and $49.8 million per year ongoing to implement income supports for eligible persons with disabilities aligned with those provided in all provinces and Yukon.
• The Income Assistance Program will continue to support self-determination and is committed to working closely with First Nations communities regarding funding needs as they arise.

Background

• The Income Assistance Program is a component of Canada's social safety net, similar to social assistance programs provided by provincial and territorial governments. The primary aim of the Income Assistance Program is to provide the same rates and eligibility as provincial and Yukon income assistance programs. Nunavut and the Northwest Territories deliver their own income assistance programs to all eligible residents.
• The Income Assistance Program also delivers case management and pre-employment supports to some First Nations to help individuals transition to employment and education. These are individualized supports such as counselling and life skills, training in essential skills, training and work experience projects.
• Budget 2018 provided $8.5 million over two years to engage with First Nations to understand how to make the Income Assistance Program more responsive to the needs of individuals and families living on-reserve.
• An Engagement Report was drafted as a result of First Nation-led, regionally-specific engagement activities and was published on the departmental website in May 2021 following First Nation validation. Utilizing the findings of this report, Indigenous Services Canada is working in collaboration with First Nations partners to make the Income Assistance Program more responsive to the needs of individuals and families on-reserve.
• Since 2021, Canada has implemented the Income Assistance First Nations Youth Employment Strategy pilot project for the on-reserve Income Assistance clients, including women, aged 18 to 30. This pilot project provides employment and skills training placements on-reserve and in closer proximity to First Nations youths' communities, reducing barriers to career options/opportunities.
• In 2023-24, in recognition of the high cost of living, the Government of Canada provided a cost of living relief benefit of approximately $320 million through Indigenous Services Canada's Income Assistance Program.
• This amount equates to approximately $300 per client for ten months. To better respond to the needs of individuals and families in receipt of income assistance, First Nations also had the flexibility to utilize this supplemental funding to support affordability measures (such as community food pantries).
• The department issued five rounds of cost of living relief. For each round, the benefit amounted to $300 per month for each on-reserve Income Assistance client or Status Indian in Yukon, including self-governing First Nations, or an alternative option determined by First Nation leadership:
  • The first round (July 2022) provided a four-month benefit, amounting to $128.6 million.
  • The second round (December 2022) provided a five-month benefit, amounting to $160.5 million.
  • The third round (May 2023) provided a six-month benefit, amounting to $192.8 million.
  • The fourth round (October 2023) provided an additional two- month benefit amounting to $64 million.
  • Fifth and last round (February 2024) provided an additional two-month benefit amounting to $64 million.

Current Status

• Indigenous Services Canada is working with First Nations partners to improve the on-reserve Income Assistance Program to ensure its responsiveness to the specific needs of the First Nations communities and address affordability barriers.
• To ensure Income Assistance clients access and receive the supports they are eligible for, the department will work with Federal and Provincial / Territorial partners to promote awareness of other benefits and programs that can help clients with the current cost of living and/or address the financial hardships and other barriers faces by clients with disabilities (e.g., Canada Child Benefit, GST/HST credit, Canada Disability Benefit).
• In 2024-25, the department will continue to provide support by:
  • Delivering essential needs and working with First Nations communities to understand the emerging needs of low-income individuals and families on-reserve.
  • Delivering funding to Income Assistance clients with disabilities, to help not only cover essential living expenses, but also the many other disability-related costs that often prevent persons with disabilities from full, equal participation in the social and economic life of their communities.
  • Monitoring emerging needs of low-income individuals and families on-reserve due to the high costs of living.
  • Working with First Nations to transfer service delivery of the Income Assistance Program through New Fiscal Relationship and Self-Government agreements.
  • Supporting capacity-building for First Nations organizations that deliver Income Assistance training.

Key Messages

• Indigenous Services Canada's Family Violence Prevention Program supports the operations of emergency shelters and transitional housing for Indigenous women, children, and 2SLGBTQI+ people escaping violence across Canada, and Indigenous-led violence prevention activities.
• The department continues to collaborate with the Canada Mortgage and Housing Corporation and Indigenous Partners to advance on the Indigenous Shelter and Transitional Housing Initiative, which seeks to establish 38 new shelters and 50 transition homes across Canada for Indigenous women, children, and 2SLGBTQI+ People escaping violence.
• 100% of funding through the Comprehensive Violence Prevention Strategy is dedicated towards building Indigenous-led shelters and transition homes and expanding access to violence prevention programming. Within the housing continuum, emergency shelters and transition homes are the initial steps an individual escaping violence must go through in order to advance towards independent living.

Background

• The Indigenous Shelter and Transitional Housing Initiative was launched by the Canada Mortgage and Housing Corporation in November 2021, in collaboration with the department. It forms part of the $724.1 million Comprehensive Violence Prevention Strategy announced in the 2020 Fall Economic Statement:
  • $420 million over five years starting in 2021 for the Canada Mortgage and Housing Corporation to fund construction of new shelters;
  • $304.1 million over five years and $96.6 million ongoing for the department to fund shelter operations and violence prevention activities.
• The Initiative is led by the Canada Mortgage and Housing Corporation, which provides the capital, in collaboration with the department, which supports ongoing operations.
• Rising inflation, shortages in skilled trades, equipment, and labour have caused construction delays and increased capital costs that the Canada Mortgage and Housing Corporation has worked to address.
• To expedite construction, the department continues to work with the Canada Mortgage and Housing Corporation to support project development costs and capital subsidies.
• The department provided pre-development funding for communities to hire project managers, architects, engineers, and other services to help generate new applications. Pre-development Funding is currently available for selected to meet conditions to release the capital funding from the Canada Mortgage and Housing Corporation. This can include costs related to Class C Estimates, water and sewer feasibility, and other needs assessments.
• Between fiscal years 2021-2022 and 2023-2024, $107 million was allocated for the department to fund the operations of new shelters and transition homes and to support violence prevention activities.
• As of April 2024, the department spent 100% of its $107 million allocation:
  • $76.7 million has gone to programs and services for Indigenous people facing gender-based violence
  • $30.3 million for shelter supports
    • $9.3 million on initial operational costs; and
    • $21 million on project development to expedite construction

Current Status

• In 2024-25, $88 million is available to support new shelters and violence prevention activities under the Comprehensive Violence Prevention Strategy .
• A plan is in place to allocate funds, minimize the risk of future funding lapse, increase timely information flow to identify funding gaps, and raise awareness of the department's supports to develop proposals. As a result, the program is oversubscribed.
• As of April 2024, a total of 47 projects were selected: 25 shelters and 22 transition homes. The department has committed a total of $37 million in annual funding for operations.
• The latest call for applications is now closed, and the Committees are reviewing the new applications.

Program Level Data

Key Messages

• The NIHB Program provides clients (registered First Nations and recognized Inuit) with coverage for a range of health benefits.
• Benefits under NIHB include prescription and over-the-counter medications, dental and vision care, medical supplies and equipment, mental health counselling, and transportation to access health services not available locally.
• Together with the Assembly of First Nations, my officials are engaged in a multi-year Joint Review of the Non-Insured Health Benefits Program in order to identify and address gaps in benefits, and streamline service delivery to be more responsive to client needs. My Department continues to work collaboratively with First Nations and Inuit partners through the Joint Review and other engagement tables.
• Budget 2024 proposes to provide $562.5 M in 2024-25 to maintain supplementary health benefits coverage provided to eligible First Nation and Inuit through the Non-Insured Health Benefits (NIHB) Program.

Background

The NIHB Program provides benefits to eligible First Nations and Inuit clients in a manner that:

• Is appropriate to their unique health needs;
• Contributes to the achievement of an overall health status for First Nations and Inuit that is comparable to that of the Canadian population as a whole;
• Is sustainable from a fiscal and benefit management perspective; and,
• Facilitates First Nations/Inuit control at a time and pace of their choosing.

Current Status

• During the 2022-23 Fiscal Year, NIHB provided access to benefits coverage for 936,006 eligible clients.
• Total NIHB program benefit expenditures in this period were $1891.7 million; a 11.6% increase over program expenditures in 2021-22.

Additional Information

i. Dental Benefits

ii. National Dental Plan

Key Messages

• The Government of Canada is committed to working in partnership to continue to advance the priorities expressed by Indigenous Peoples about their health and to improve access to high quality, culturally safe health services. To this end, engagement with First Nations, Inuit, Métis, and intersectional partners on distinctions-based Indigenous Health Legislation has been ongoing for just over two and a half years.
• In light of feedback from partners, the federal initiative to co-develop Indigenous Health Legislation has reached a critical juncture. ISC has reviewed and analyzed all the feedback received from partners and reflected on options that would provide more time and transparency to the process, and move forward in a meaningful way, based on partners' readiness and ongoing engagement.
• Canada is committed to finding a meaningful path forward with First Nations, Inuit, and Métis partners, as well as provinces and territories, which will advance our shared priorities on Indigenous health.

Background

• Health is a complex matter for which the provinces, territories, Indigenous governments, and the federal government have some shared jurisdiction.
• Provinces and territories are responsible for health care delivery in their respective jurisdictions and receive transfer payments from the federal government to provide universally accessible and publicly insured health services to all residents, including Indigenous Peoples. However, provincial and territorial governments generally do not provide health services in First Nations communities on reserve. To address this gap, the federal government, guided by the 1979 Indian Health Policy, has assumed a funding role and, in some cases, a direct delivery role for health services.
• Recent reports, including the Final Report of the Truth and Reconciliation Commission and the Final Report of the National Inquiry into Missing and Murdered Indigenous Women and Girls (MMIWG), have identified significant gaps in health services between Indigenous and non-Indigenous people.
• The 2022 mandate letter for the Minister of Indigenous Services commits to "fully implement Joyce's Principle and ensure it guides work to co-develop distinctions-based Indigenous health legislation to foster health systems that will respect and ensure the safety and well-being of Indigenous Peoples."
• The 2020 Fall Economic Statement announced an initial investment of $15.6 million over 2 years, starting in 2021 to 2022 to support the co-development of distinctions-based+ health legislation with First Nations, Inuit and the Métis Peoples.
• From winter 2021 to fall 2022, regional and national First Nations, Inuit, and Métis partners, as well as Indigenous partners with intersectional lenses, led numerous engagements within their communities on the vision for distinctions-based Indigenous health legislation. A national summary report, What we heard: Visions for Distinctions-based Indigenous Health Legislation, was published in January 2023.
• From fall 2022 to June 2023, ISC launched distinctions-based+ co-development processes, which focused on translating what was heard through engagement into proposed legislative options. In total, 14 co-development tables were launched with First Nations, Inuit, and Métis partners, as well as Indigenous partners with intersectional lenses.

Current Status

• Informed by the discussions and input from partners, ISC prepared a Key Legislative Elements document, outlining a potential preamble, purpose, and legislative measures. This document was shared widely to all partners for review and feedback in August 2023.
• A significant amount of feedback was received from partners on the Key Elements document in September 2023. Generally, partners were disappointed and frustrated. Some partners see opportunities for advancing interests and priorities related to health through federal legislation, while others fundamentally oppose federal legislation in this space. Many partners also strongly expressed a need for more time and a more flexible, transparent co-development approach aligned with the UN Declaration on the Rights of Indigenous Peoples, including Articles 18 and 19.
• Following the extensive feedback provided by partners on the Key Elements document, ISC reviewed and analyzed all the feedback received from partners and reflected on options that would provide more time and transparency to the process, and move forward in a meaningful way, based on partners' readiness and ongoing engagement.
• In addition, in fall 2023, Minister Hajdu publicly committed to seeking the permission of the Prime Minister to pursue separate First Nations, Inuit, and Métis-specific legislative options with partners. ISC is currently awaiting confirmation on the way forward.

Program-Level Data (if applicable)

Key Messages

• Addressing the disproportionate rates of tuberculosis in Indigenous Peoples in a distinctions-based and culturally-safe way remains a key priority for the Government of Canada.
• The Government of Canada has committed to working with partners to reduce the rate of active tuberculosis cases in Inuit Nunangat by at least 50 percent by 2025 (compared to 2016 rates) and to eliminate tuberculosis across Inuit Nunangat by 2030.
• Budget 2023 announced an additional $16.2 million over three years to support the elimination of tuberculosis in Inuit Nunangat.
  • Of this, $5.4 million was made available and accessible through the Supplementary Estimates (B) in 2023-24, to further implement the Inuit Tuberculosis Elimination Framework. This funding has been allocated.
  • This funding extends Budget 2018 investments by supporting the ongoing implementation of Regional Action Plans in Inuit Nunangat.
• ISC continues to work with key Indigenous partners to support distinctions-based approaches to address disproportionate rates of tuberculosis in Indigenous populations compared to non-Indigenous Canadian-born populations, aligning with the Government of Canada's commitment to work with partners to eliminate tuberculosis.
• Inuit and First Nations populations in Canada face a disproportionately high burden of tuberculosis compared to the non-Indigenous Canadian-born population. In 2022, the reported rates of active tuberculosis among Inuit and First Nations in Canada were 136.7 cases and 21.4 cases per 100,000 population, respectively, compared to 5.1 cases per 100,000 population in Canada overall.

Background

It is likely that the tuberculosis burden in Inuit and First Nations populations has increased since the COVID-19 pandemic, when health human resources were diverted from tuberculosis and other public health services in response to the pandemic.

Additionally, high rates of tuberculosis are a manifestation of underlying disparities in access to health care and other social determinants of health among Indigenous communities, including inadequate health and social infrastructure, sub-standard and overcrowded housing, and food insecurity; these disparities are driven by the historic and continuing impacts of colonialism.

Since 2017, ISC has maintained a stockpile of rifapentine to support rapid access to this short-course treatment for tuberculosis infection. ISC also supports the deployment and allocation of screening and treatment technologies such as GeneXpert, interferon gamma release assays (IGRA), and digital X-rays, which are integral in bringing tuberculosis diagnosis closer to home.

In 2018, the Government of Canada and Inuit Tapiriit Kanatami made a joint commitment to eliminate tuberculosis from Inuit Nunangat by 2030. Budget 2018 announced $27.5 million over five years to support Inuit-specific approaches to tuberculosis elimination in Inuit Nunangat. This was in addition to $640 million over 10 years announced in Budgets 2017 and 2018 to address Inuit Nunangat housing needs. Canada also committed to implementing the 2030 Agenda and its Sustainable Development Goals at home and abroad, which includes ending the tuberculosis epidemic.

In March 2022, the Canadian Tuberculosis Standards 8th edition was published and for the first time included a chapter on the provision of culturally competent tuberculosis care to Indigenous Peoples.

Current Status

First Nations in northern Saskatchewan, Manitoba, and Ontario have been addressing tuberculosis outbreaks since 2021-2022. There are also outbreaks in Inuit communities in Nunavik and Nunavut. It is likely that the rates of tuberculosis in both Inuit and First Nations have increased as a result of the COVID-19 pandemic. The pandemic required lockdowns and a diversion of health human resources from tuberculosis and other public health services. Although the acute phase of the pandemic has ended, shortages in health human resources continue to impact health programs across the country, including tuberculosis programs.

Shorter treatment regimens and pediatric formulations for tuberculosis infection, tuberculosis disease, and drug-resistant tuberculosis are available globally, although drug manufacturers have not applied for regulatory approval in Canada. Some of these drugs are available through pathways including the Special Access Program and Urgent Public Health Need List from Health Canada. Frontline health care providers have identified delays in accessing drugs through these pathways. ISC is working with Health Canada and the Public Health Agency of Canada to explore alternative means to access these medications as well as facilitating access to guidance for navigating the existing Special Access Program. Globally, there are more shortages in many drugs, including tuberculosis drugs. A shortage of Rifampin, the leading treatment for tuberculosis disease, occurred in in 2020 and again from late 2022 to early 2023.Sanofi is currently the sole manufacturer that can distribute rifapentine to Canada, a first-line short-course tuberculosis infection treatment.

The ISC Public Health Surge Team has been mobilized at the request of Manitoba, Ontario, Nunavik, and Nunavut to provide additional health human resources support during tuberculosis outbreaks and community-wide screenings. In Nunavut, ISC supported Nunavut Tunngavik Incorporated, the Government of Nunavut and the community of Pangnirtung to complete a community-wide tuberculosis screening clinic in the fall of 2023. ISC's Public Health Surge Team and ISC's Regional Offices mobilized a total of eight nurses to the community for 44 person-weeks. During this three-month initiative, 1,128 people attended their initial screening appointment, representing 94% of the target population. A community-wide screening in Naujaat began in mid-April 2024 and is scheduled to continue until the end of May. The PHST has mobilized four nurses, and preliminary data is being distributed weekly. The PHST anticipates there will be additional requests in the future from the Government of Nunavut for tuberculosis community wide screenings.

ISC's Emergency Management Assistance Program provided $3.6M in Fall 2023 to address tuberculosis outbreaks in Saskatchewan. ISC is also investing in the development of integrative case management, contact tracing and surveillance data tools for tuberculosis in First Nations which will optimize the timeliness and comprehensiveness of tuberculosis care and will assist with bringing tuberculosis outbreaks under control.

To improve access to tuberculosis education for nurses, community workers, and other front line health care providers working in the tuberculosis cascade of care, ISC's Communicable Disease Control Division's National Tuberculosis program has begun hosting TB Talks. These are interactive webinars in which attendees can further develop their knowledge on tuberculosis. Topics are suggested by participants and feature an expert speaker and someone with lived/living experience of the topic. Topics so far have included person-centered care, pediatric tuberculosis, and culturally safe nursing care. Tuberculosis education is essential to ensure that health care providers consider tuberculosis in a differential diagnosis, to help provide person-centered care, reduce stigma, and to improve access to testing, diagnosis and treatment for active tuberculosis and tuberculosis infection, all of which are crucial to move towards tuberculosis elimination.

Budget 2023 announced an additional $16.2 million over three years to support the elimination of tuberculosis in Inuit Nunangat. This funding extends the investment put forward in Budget 2018 and will support the ongoing implementation of Regional Action Plans in Inuit Nunangat. Funds allocated via B2023 were substantially lower than what was requested in Inuit Tapiriit Kanatami's pre-budget submission, and their president, Natan Obed, expressed concern that this investment is insufficient to eliminate tuberculosis in Inuit Nunangat by 2030. There is no comparable investment to address tuberculosis among First Nations.

Budget 2024 did not include any investments for First Nations or Inuit tuberculosis elimination efforts. Natan Obed, president of Inuit Tapiriit Kanatami, has expressed disappointment regarding the "notable absence of funding to eliminate tuberculosis by 2030," despite the fact that the organization's pre-budget submission for 2024 requested an investment of $131.6M over seven years to achieve elimination commitments.

ISC continues to work towards obtaining sustainable funds to support First Nations and Inuit-led tuberculosis elimination efforts.

In October 2023, ISC funded and participated in an event hosted by the Assembly of First Nations aimed at fostering collaborative discussions on tuberculosis elimination plans among First Nations. This event brought together key stakeholders, including representatives from the Assembly of First Nations and First Nation Health Authorities from Ontario, Manitoba, Saskatchewan, and British Columbia. ISC will continue to support First Nations partners in the development of a tuberculosis elimination strategy.

Sustainable investments in programs that address specific social determinants of health are essential to further reduce the incidence and burden of diseases that are influenced by social and economic factors, including tuberculosis. Investment and collaboration across all levels of government is needed to address the widening gap in tuberculosis outcomes between Indigenous Peoples and non-Indigenous Canadian-born populations.

Program-Level Data (if applicable)

Key Messages

• The Government of Canada is fully committed to the implementation of Jordan's Principle, and to working with First Nations communities and partners to ensure that First Nations children can access the products, services and supports they need, when they need them.
• Jordan's Principle supports families in accessing products and services for First Nations children and youth to help with a wide range of health, social and educational needs.
• Between July 2016 and March 31, 2024, more than 4.85 million products, services and supports were approved through Jordan's Principle. These include speech therapy, educational supports, medical equipment, mental health services and more.
• Budget 2022 provides $4 billion over six years, starting in 2021‑2022, to ensure First Nations children continue to receive the support they need through Jordan's Principle.
  • This funding also supports long-term reforms to improve the implementation of Jordan's Principle, including the Agreement in Principle deliverables and the development and implementation of a "Back to Basics" Approach to Jordan's Principle developed with partners.
• Budget 2024 stated that Jordan's Principle is receiving $1.6 billion over two years, starting in 2023-24.
• Since 2016, Canada has invested nearly $8.1 billion to meet the health, social, and education needs of First Nations children through Jordan's Principle.
• While we continue to provide support to First Nations children through Jordan's Principle, we will also work with First Nations partners, provinces, and territories to develop longer-term approaches to help better address the unique health, social, and education needs of First Nations children.

Background

• In 2005, at the age of five, Jordan River Anderson, a First Nations child from Norway House Cree Nation in Manitoba, died in the hospital while the provincial and federal governments could not agree on who was financially responsible for his home care in a medical foster home.
• That year, the First Nations Child and Family Caring Society (Caring Society) released the Wen:De reports, which included the policy recommendations for the concept of Jordan's Principle, a child-first principle to ensure that services for First Nations children are not delayed due to jurisdictional disputes.
• In February 2007, the Assembly of First Nations (AFN) and the First Nations Child and Family Caring Society (Caring Society) filed a complaint with the Canadian Human Rights Commission (CHRC) that alleged that pursuant to section 5 of the Canadian Human Rights Act (the Act), Indian and Northern Affairs Canada (INAC) discriminates in the provision of child and family services to First Nations on reserve and in the Yukon, on the basis of race and/or national or ethnic origin, by providing inequitable and insufficient funding for those services. The implementation of Jordan's Principle was identified as a solution to jurisdictional disputes as part of this complaint.
• On December 12, 2007, a Private Member's Motion No. 296 in support of Jordan's Principle was passed with unanimous support in the House of Commons in honor of Jordan River Anderson: "The government should immediately adopt a child first principle, based on Jordan's Principle, to resolve jurisdictional disputes involving the care of First Nations children."
• In August 2007, the Government of Canada announced $11million in new funding to Health Canada for the implementation of Jordan's Principle. This implementation focused on jurisdictional disputes involving First Nations children living on-reserve with multiple disabilities requiring services from multiple service providers.
• Under the federal response, no Jordan's Principle cases were identified (given the narrow scope) and the fund was eliminated. Requests for services that came forward were managed through federal/provincial contacts and services provided through existing programs.
• The Truth and Reconciliation Commission released its Final Report in 2015. Call to Action #3 calls on "all levels of government to fully implement Jordan's Principle."
• On January 26, 2016, the Canadian Human Rights Tribunal (CHRT) issued its first ruling with respect to the 2007 complaint by the Caring Society and AFN. The ruling substantiated the complaint and made a finding of discrimination against the Attorney General of Canada (for the Minister of Indian and Northern Affairs) that Canada was failing to provide an adequate level of child welfare services to First Nations families on reserve. The CHRT ordered Canada "to cease applying its narrow definition of Jordan's Principle and to take measures to immediately implement the full meaning and scope of Jordan's Principle."
• Since that time, the CHRT has issued many other orders, clarifying eligibility, establishing definitions and timelines, and most recently, ordering Canada to fund on-reserve capital projects to support the delivery of Jordan's Principle services (2021 CHRT 41).

Current Status

On December 31, 2021, two Agreements-in-Principle were reached between Canada, the Assembly of First Nations, the First Nations Child and Family Caring Society, the Chiefs of Ontario, the Nishnawbe Aski Nation, and counsels for the AFN-Moushoom and Trout class actions (collectively, "the Parties"). One Agreement in Principle is for compensation for those harmed by discriminatory underfunding of First Nations child and family services and for those who were denied, or delayed in receiving, services under Jordan's Principle, and the other pertains to the long-term reform of the First Nations Child and Family Services Program and Jordan's Principle.

These Agreements-in-Principle provide a basis for final settlement agreements to be negotiated over the coming months. The Agreements-in-Principle include:

• $23 billion in compensation for First Nations children on-reserve and in the Yukon, who were removed from their homes between April 1, 1991, and March 31, 2022, and for their parents and caregivers. This also includes compensation for those impacted by the government's narrow definition of Jordan's Principle between December 12, 2007, and November 2, 2017, as well as for children who did not receive or were delayed receiving an essential public service or product between April 1, 1991, and December 11, 2007, and their families. Our shared goal is to achieve a settlement that can be delivered to families as soon as possible.
• Approximately $20 billion, over five years, for long-term reform of the First Nations Child and Family Services program and Jordan's Principle to ensure that the discrimination found by the CHRT never repeats itself. Canada will take urgent steps to implement the measures set out in the "Work Plan to Improve Outcomes under Jordan's Principle, based on Indigenous Services Canada's Compliance with the Tribunal's Orders." The Work Plan specifically includes commitments to:
  • Identify, respond to and report on urgent requests;
  • Develop and implement Indigenous Services Canada internal quality assurance measures, including training on various topics, a complaint mechanism, and an independent office to ensure compliance;
  • Ensure privacy is protected, that least intrusive approach is used, and for the parties to engage the Privacy Commissioner;
  • Ensure that professional recommendations are respected, and that clinical case conferencing only takes place where reasonably required to ascertain needs;
  • Ensure that reapplications and/or cessation or disruption in funding, and/or payment procedures do not negatively impact First Nations children;
  • Increase national consistency and standards, especially with respect to group requests, develop and implement tracking to achieve this, and provide for re-review;
  • Increase specificity and personalization in denial rationales with prompt communication to requestor;
  • Implement "Back to Basics" approach and culture change to determination of Jordan's Principle requests; and
  • Identify mechanisms for off-reserve capital where required to provide safe, accessible, confidential, and culturally and age-appropriate spaces to support the delivery of Jordan's Principle and confirmed through needs assessments and feasibility studies, while negotiating Final Settlement.
  • The Parties will discuss options for First Nations to take on a larger role in approving and delivering services, products and supports under Jordan's Principle. Following a needs assessment and feedback from First Nations and service providers, the Parties will develop an implementation approach for long-term reform of Jordan's Principle.

On October 24, 2023, the Federal Court approved a First Nations-led settlement agreement that 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.

Budget 2022 provides $4 billion over six years, starting in 2021‑2022, to ensure First Nations children continue to receive the support they need through Jordan's Principle. This funding will also support long-term reforms to improve the implementation of Jordan's Principle, which include the above-mentioned Agreement in Principle deliverables and the development and implementation of a "Back to Basics" Approach to Jordan's Principle to be co-developed with partners.

Budget 2024 stated Jordan's Principle is receiving $1.6 billion over two years, starting in 2023-24, to ensure First Nations children continue to receive the support they need, and since 2016 Canada has invested nearly $8.1 billion to meet the health, social, and education needs of First Nations children through Jordan's Principle.

Canada has been ordered (2022 CHRT 8) to fund and provide data in support of research to be conducted with the Institute of Fiscal and Democratic Studies to guide further development of the Long-Term Approach to Jordan's Principle, and to engage with partners on the resources required to support post-age of majority service navigation supports.

Discussions are ongoing. It is anticipated that multiple central agency touch points will be required to reach and implement Final Settlement Agreements.

Additional Information

Key Messages

• The Government of Canada is fully committed to the implementation of Jordan's Principle, and to continuing to working with First Nations communities and partners to ensure that First Nations children can access the products, services and supports they need, when they need them.
• While we continue to provide support to First Nations children through Jordan's Principle, we are committed to working with First Nations partners, provinces, and territories to develop longer-term approaches to help better address the unique health, social, and education needs of First Nations children.

Background

• In 2016, the Canadian Human Rights Tribunal (CHRT) substantiated a 2007 human rights complaint brought by the First Nations Child & Family Caring Society (Caring Society) and the Assembly of First Nations (AFN) which found the First Nation Child & Family Services (FNCFS) Program to be discriminatorily underfunded and ordered Canada to reform it. The CHRT also ordered Canada to cease applying a narrow definition of Jordan's Principle and to immediately implement its full meaning and scope.
• Since the initial 2016 decision, the CHRT has issued a series of subsequent orders regarding how Jordan's Principle should be defined and implemented which have significantly expanded the scope and eligibility of Jordan's Principle. The CHRT has retained oversight to ensure Canada complies with its orders and has the authority to issue new orders.
• On December 12, 2023 the Caring Society filed a non-compliance motion with the CHRT regarding Canada's implementation of Jordan's Principle.

Current Status

• Canada's goal is to continue to implement Jordan's Principle to best meet the needs of First Nations children, and to ensure that this is done in the most efficient and effective way. We believe that this can be done and are taking the required legal steps to bring this forward to the Canadian Human Rights Tribunal (CHRT).

Key Messages

• Medical travel is an essential part of accessing health care services in the territories, particularly due to the geography, small population, and remote and isolated communities. All Provinces and Territories provide their residents with access to insured health care services. However, for Territorial residents, this often involves travel outside of the territories to access insured health services in other provinces, supported by Territorial Government medical travel programs.
• Territorial medical travel programs in Nunavut and Northwest Territories charge a medical travel copayment to all residents each time they need to travel to access insured health services to help offset the cost of travel. To ensure the territorial copayment charge is not a barrier to First Nations and Inuit access to health services, ISC pays this copayment charge on behalf of eligible First Nations and Inuit through the Non-Insured Health Benefits (NIHB) Program.
• Despite ISC's coverage of the medical travel copayment, the Government of Nunavut and Northwest Territories have indicated they cannot keep up with escalating medical travel costs due to a variety of factors such as increases in demand for health care and inflationary cost pressures. To help address these pressures, ISC is providing the governments of Nunavut and Northwest Territories with $95 million and $24.2 million in 2024-25, respectively.

Background

• The territories face significant challenges in delivering health care to their residents, particularly due to their geography, remote and isolated communities, and small population. As a result, basic health care taken for granted elsewhere, including support for births, mental health and addictions treatment, diagnostic imaging, surgeries, and dental care, is not available or easily accessed close to home for most northern residents. Virtual care is available in limited ways, but there are technological barriers, such as lack of bandwidth, and availability of satellites that must be addressed to make further progress. This combination of factors means that medical travel is and will continue to be an integral component of territorial health systems.
• The federal government supports territorial government health care systems in a number of ways, including through Territorial Formula Financing and Health Canada's Territorial Health Investment Fund (for which additional funding, $350 million over ten years, was announced in the 2023 Fall Economic Statement).
• Territorial governments have indicated that they cannot keep up with escalating medical travel costs within their existing funding levels, however, the shortfall in funding required to support the territorial health care systems is the fundamental driver of high medical travel costs to access insured services out-of-territory.
• Territorial governments hold primary responsibility for providing medical travel for all Territorial residents (85% of whom are Inuit in Nunavut and 41% are First Nations and Inuit in the Northwest Territories) as an integral component of their overall health system.
• Due to differing devolution landscapes in each of the territories, the manner in which medical travel is delivered varies. In the Northwest Territories and Nunavut, medical travel is primarily managed and delivered by the Territorial Governments, which cover travel to access insured health services (often outside the Territory). ISC provides funding to each Territorial Government through a contribution agreement to cover the cost of the copayment charged by Territorial Government, to all clients travelling to access insured health services. ISC covers the full cost of travel to access eligible uninsured health services. In the Yukon, First Nations and Inuit are not eligible for Territorial medical travel coverage. Non-Insured Health Benefits, coverage for eligible clients in Yukon (including eligible medical transportation), is delivered through an ISC call centre located in Whitehorse.
• ISC's Non-Insured Health Benefits Program provides eligible registered First Nations and recognized Inuit) with coverage for a range of health benefits that are not covered through other public or private plans or programs. Benefits include prescriptions and over-the counter drugs, dental and vision care, medical supplies and equipment, mental health counselling, and medical transportation to access health services that are not available locally.

Current Status

• The Governments of Nunavut and Northwest Territories signed contribution agreements, until March 31, 2025, to continue to administer some Non-Insured Health Benefits and medical travel for Inuit and First Nations residents to ensure seamless access to insured and non-insured health care services.
• The Governments of Nunavut and Northwest Territories have committed to working with Indigenous partners and ISC to develop a longer-term solution to medical travel.
• In the Yukon, ISC continues to administer and cover the full cost of travel to access eligible uninsured health services. 

Program-Level Data (if applicable)

Previous ISC funding to help address medical travel cost pressures in Nunavut and the Northwest Territories, and for Non-Insured Health Benefits.

Key Messages

• Mental wellness is a key priority for Indigenous leaders, organizations and communities which is shared by the Government of Canada.
• The Government of Canada recognizes the pivotal role that intergenerational trauma and the Indigenous determinants of health play in mental wellness of First Nations, Inuit and Métis.
• The Government of Canada works closely with Indigenous partners and communities to support Indigenous-led, distinctions-based, holistic, culturally-grounded, trauma-informed and community-based approaches to mental wellness.
• Budget 2024 proposes to provide $630.2 million over two years, starting in 2024-25, to support Indigenous people's access to mental health services, including through distinctions-based mental wellness strategies..

Background

Indigenous Services Canada works closely with Indigenous partners at the national, regional and community levels and is guided by Indigenous-led frameworks such as the First Nations Mental Wellness Continuum Framework, Honouring Our Strengths, and the National Inuit Suicide Prevention Strategy and We Matter's Pathfinding Towards a Flourishing Future: Awareness and Advocacy Guide.

The Government of Canada has made significant recent investments to improve mental wellness in Indigenous communities, including with an approximate annual investment of $650 million in 2023-2024 through Indigenous Services Canada's Mental Wellness Program. These investments are flexible to meet the immediate mental wellness needs of communities by supporting Indigenous-led, culturally-relevant community-based mental wellness promotion, on-the-land initiatives, suicide prevention, life promotion, crisis response, and substance use treatment and prevention services in Indigenous communities. This funding also supports the provision of essential cultural, emotional and mental health supports to Survivors of Indian Residential Schools and Federal Indian Day Schools and families of former students, as well as those affected by the issue of Missing and Murdered Indigenous Women, Girls, and 2SLGBTQI+ people.

The Non-Insured Health Benefits mental health counselling program provides coverage for professional mental health counselling to eligible clients to complement other mental wellness services that may be available to clients or in communities. Jordan's Principle makes sure all First Nations children living in Canada can access the products, services and supports they need, when they need them. Funding is available for mental wellness supports. Requests for Inuit children are made through the Inuit Child First Initiative.

Current Status

Budget 2024 proposes to provide $630.2 million over two years, starting in 2024-25, to support Indigenous people's access to mental health services, including through distinctions-based mental wellness strategies.

A second National Summit on Indigenous Mental Wellness was hosted by the Minister of Indigenous Services in October 2023 to highlight Indigenous-led initiatives that are improving mental wellness for First Nations, Inuit and Métis. Key themes included Indigenous children and youth mental and supporting communities in crisis. A third Summit is being planned for October 16-17, 2024 in Calgary, Alberta and will build on the 2022 and 2023 Summits.

The First Nations Child Family Services, Jordan's Principle and Trout Class Action Settlement Agreement compensates those harmed by the discriminatory funding practices of the First Nations Chid and Family Services program and those impacted by the federal government's narrow definition of Jordan's Principle. It was approved in federal court on October 24th, 2023.

Program-Level Data

• ISC funds a network of 45 treatment centres, as well as drug and alcohol prevention services in the majority of Indigenous communities across Canada.
• As of March 2024, there were 82 opioid agonist therapy sites wraparound services to Indigenous populations, increased from a baseline of 11 in 2016–2017.
• As of March 2024, there are 75 Mental Wellness Teams supporting 385 communities, increased from a baseline of 75 teams supporting 86 communities in 2016.
• Between its launch in October 2016 and the end of January 2024, the Hope for Wellness Helpline's culturally competent counsellors have responded to approximately 185,315 calls and online chats (the chat service was launched in April 2018).
• There are currently over 1,800 individual counsellors registered with the Trauma-Informed Health and Cultural Supports program. With an average of more than 2,818 community members accessing counselling each month since April 2021. Between April 2021 and March 2024, over 267,348 hours of professional mental health counselling was provided through the programs.
• Health and Cultural support workers provide services to an average of more than 89,000 community members per year. Between 2007 and 2019, there were more than 8.5 million interactions between health or cultural support workers and community members,
• Between August 2021 and February 2024, ISC supported the coordination of approximately 457 health supports to provide emotional and cultural services at over 127 events.

Key Messages

• Our Government recognizes that substance use can have devastating effects on individuals, families, and communities, and their general health and well-being.
• We are currently investing approximately $650M annually for community-based services to address the mental wellness needs of First Nations and Inuit.
• Indigenous Services Canada currently funds a network of 45 treatment centres, as well as drug and alcohol prevention services in the majority of First Nations communities across Canada.
• We remain focused on supporting long-term investments that improve the health and well-being of Indigenous peoples.

Background

Current Status

Key Messages

• Supporting the health workforce in remote and isolated Indigenous communities to ensure high-quality, culturally safe, accessible, and effective health services are provided, is a priority for Indigenous Services Canada. The health workforce in Canada has been facing significant challenges, and we are working extensively with all impacted communities to find a solution. Concerted and collaborative efforts from federal, provincial, and territorial governments are needed to continue to address the challenges facing all professions across our health workforce.
• Health care at ISC health facilities in First Nations communities is primarily delivered by Registered Nurses; however, they are part of a multidisciplinary, inter-jurisdictional team that provide healthcare supports, some of which are available in communities on a rotational basis. This includes, but is not limited to, other regulated nursing professionals (including nurse practitioners, psychiatric nurses, and licensed practical nurses where available), physician services, dental services, paramedics, and mental health therapists.
• ISC has been implementing a Nursing Health Human Resource Framework that focuses on retention and recruitment efforts through 5 commitments: to modernize the practice environment, to ensure the wellbeing of our workforce; to Influence the labour market; to respond with nimble surge and relief resources and a commitment to talent acquisition and management, specifically focusing on the remote and isolated communities where we provide direct service delivery.
• In Budget 2021, an investment of $354M was committed over 5 years to address program integrity in remote health service delivery and explore innovations in team composition through expansion of the regulated nursing compliment and investing further in paramedicine.
• Budget 2022 introduced funding for a flagship retention strategy investing $40.5M over 4 years for the full implementation of a Nursing Services Response Centre.
• Budget 2024 invests $390.4 million over four years, starting in 2024-25, to build or renovate health facilities, including to support the Virtual Health Hub led by the Saskatchewan Indian Institute of Technologies. This funding will also improve the safety of primary care workers in remote and isolated on-reserve First Nations communities.
• In response to more recent critical nursing shortages, ISC is having ongoing discussions with communities who are affected and is using all its resources to identify immediate and viable solutions. This includes:
  • working nationally and inter-provincially to redeploy available resources from other ISC-run facilities;
  • working with First Nations leadership, provincial partners, and the healthcare sector more broadly to recruit more nursing staff and other health care providers, such as paramedics and physician assistants on a temporary and/or permanent basis; and
  • working with our provincial health care partners to improve access to physicians and medevacs.
• ISC is also engaging with First Nations leadership, provincial government officials, and other partners to find solutions to the broader issue of shortage of health care workers in Canada.
• The Government of Canada recently announced its increases for loan forgiveness for doctors and nurses working in under-served rural and remote communities. This effort is contributing to strengthening the health workforce in rural and remote communities by attracting and retaining health workers, and helping manage debt loads for family physicians, family medicine residents, nurses and nurse practitioners who work in under-served areas.
• We know the difficulties and the impacts these staffing challenges are having on First Nations communities and on the health professionals that serve them. The Occupational Critical Incident Stress Management program is available to support nurses working in Indigenous communities across Canada. This service is available 24/7 in English and French and can be reached by phone or email.
• The Hope for Wellness Help Line provides immediate, toll-free telephone and online-chat based emotional support and crisis intervention to all Indigenous people in Canada. This service is available 24/7 in English and French, and upon request in Cree, Ojibway, and Inuktitut. Trained counsellors are available by phone at 1-855-242-3310 or by online chat at www.hopeforwellness.ca.

Background

• Indigenous Services Canada supports primary health care services in 79 remote and isolated First Nations communities, and two hospitals in Manitoba. Of these communities, Indigenous Services Canada directly delivers primary health care services in 50 remote and isolated communities involving four regions (Alberta (4), Manitoba (21), Ontario (24) and Quebec (1)).
• In remote and isolated First Nations communities, nurses (including nurse practitioners) are often the community members' first point of contact with the health system and provide public health and primary care services. Nursing stations in these communities provide 24/7 access to clinical and client care and are generally staffed by teams of nurses. Services include routine health care (e.g. immunization, chronic illness management) and more complex emergency medical care (e.g. heart attacks, strokes, traumas). First Nations clients also have access to public health services (health protection, health promotion, disease prevention, surveillance), often delivered by nurse-led teams.
• Exacerbated by the pandemic, the country is experiencing a national nursing shortage. Statistics Canada's Labour Report for the 4th quarter of 2023 demonstrates the ongoing nursing HHR challenges faced by Canada. In quarter 4, the number of vacant positions within health occupations continued to be the highest for registered nurses and registered psychiatric nurses (28,700), nurse aides, orderlies and patient service associates (20,900), and licensed practical nurses (13,300). Together, these three occupations accounted for 70% of the total vacancies in health occupations. 56.1% of registered nurse and registered psychiatric nurse vacancies were long-term vacancies, meaning recruitment efforts had been ongoing for 90 days or more.
• The deteriorating state of nursing HHR in Canada has particular consequences for Indigenous Services Canada whose current remote service delivery model is heavily dependent on Registered Nurses to maintain the 24/7 urgent, emergent and primary care services in culturally diverse communities which places unique demands on this nursing workforce.
• Prior to joining ISC in 2017, the department experienced fluctuating shortages ranging from 30-40% of the remote and isolated workforce. ISC employs approximately 930 nurses across Canada in a range of roles from front-line service delivery operations to Senior Management. Approximately 85% of this workforce is made up of part-time employees, many of whom commute from their homes across Canada to remote communities on a rotational basis to provide 24/7 primary care services.
• As of March 2024, the average operational vacancy of the ISC front-line nursing workforce was determined to be 64% (67% in February 2024) for the public servant registered nurse positions in remote and isolated worksites.
• To offset this vacancy, ISC has drawn heavily upon an additional 412 rostered contracted health professional resources to deliver on its mandate in these locations which in 2023-2024 cost approximately $51 million. With the use of these contracted resources and additional complementary auxiliary roles from the Budget 2021 investment, the operational vacancy was decreased to 18%
• Two national committees, the Nursing Retention and Recruitment Committee (NRRC) and the Safety and Security in Nursing Stations Committee (SSNS) continue to focus on the nursing workforce and are attended by both FNIHB and staff representatives from the Bargaining Agent for nursing, the Professional Institute of the Public Service of Canada (PIPSC).
• The 2023 Nursing Workforce Survey indicated that one-third of nurses plan to leave their job in the next three years. Over half of all nurses responding to the survey agree the quality of their work suffers because of high staff turnover.
• The Government of Canada and the Professional Institute of the Public Service of Canada reached an agreement to triple the existing recruitment and retention allowances for Indigenous Services Canada (ISC) nurses working in remote and isolated communities. These increases have been in place since September 2022.
• Collective bargaining for the SV group of the Public Service Alliance of Canada, which includes Licensed Practical Nurses (LPNs, classified as HS-PHS-07s), concluded in July 2023. Retention and recruitment allowances for LPNs working in remote and isolated communities were included in the new agreement and are currently being implemented.
• 2016 Canadian Census reported Indigenous people make up 4.9% of the overall Canadian population. Indigenous people make up 3.0% of the Registered Nursing workforce in Canada. In 2016 there were 9,695 Indigenous nurses in Canada.
• In a 2023 workforce survey of ISC nurses, 20% of respondents (21% in 2020) self-identified themselves as Indigenous.

Current Status

• An agreement between the Government of Canada and the Professional Institute of the Public Service of Canada, to increase nurse recruitment and retention allowances took effect September 1, 2022. The agreement will remain in effect through to March 31, 2025, or when a new collective agreement is reached—whichever comes first. The agreement includes both full- and part-time ISC nurses delivering critical services in remote and isolated First Nations communities, and includes:
  • triple the initial recruitment allowance, from $2,250 to $6,750
  • triple the allowance provided after twelve months of employment, from $3,250 to $9,750
  • triple the annual retention allowance, from $5,500 to $16,500
• Collective bargaining for the SV group of the Public Service Alliance of Canada, which includes Licensed Practical Nurses (LPNs, classified as HS-PHS-07s), concluded in July 2023. Retention and recruitment allowances for LPNs working in remote and isolated communities were included in the new agreement and are currently being implemented. These allowances were based on the same allowances for NU-CHNs in the SH group collective agreement of the Professional Institute of the Public Service of Canada and include:
  • An initial recruitment allowance of $2,150
  • A second recruitment allowance after twelve months of employment of $3,150
  • An annual retention allowance of $5,300
• Guided by the department's Nursing Health Human Resources Framework, regional recruiters were hired in 2023-24 to support active candidate sourcing. In addition, in response to findings in both the 2020 and 2023 Nursing Workforce Survey, the department has increasingly supported professional development by researching and drafting career pathways and enrolling 12 nurses in a recognized nurse leadership program
• The department continues to implement an interdisciplinary model of care, having introduced paramedics through contracted workforce sources in 2020, The complement of front-line Nurse Practitioners and Licensed Practical Nurses have also increased. The department continues to work with professional associations and regulators to allow for the continuity of high quality, interdisciplinary care services in communities.
• ISC is also working with the Canadian Council of Registered Nurse Regulators to explore the path towards cross-jurisdictional licensure to ease barriers to the movement of nurses between jurisdictions. This step aims to facilitate the deployment of nurses from one jurisdiction to another requiring surge support.
• Business Continuity Plans are under review to better respond to situations that could be caused by or result in a shortage of health care professionals. These plans are being revised to provide better guidance in the event of a nursing station closure. In addition, as part of a risk management strategy, the department is developing tools to guide decision making around service provision in the context of significant HHR shortages.
• The 2023 Nursing Workforce Survey demonstrated that the implementation of the Nursing Services Response Centre case management team for nurses who encounter challenge in I/T, Compensation and other work-related issues has had an impact. Satisfaction with IT-related issues has increased significantly since 2020. In addition, 84% of those who have used the NSRC have indicated satisfaction with 90% indicating they would recommend the service to their colleagues.
• The 2023 Nursing Workforce Survey has also demonstrated the value of the Occupational Critical Incident Stress Management (OCISM) program with 19% of nurses indicating that access to OCISM has increased their intention to stay.
• 2021 Canadian Census reported Indigenous people make up 5.0% of the overall Canadian population. Indigenous people make up 3.0% of the Registered Nursing workforce in Canada. In 2016 there were 9,695 Indigenous nurses in Canada.
• In a 2023 workforce survey of ISC nurses, 20% of respondents (21% in 2020) self-identified themselves as Indigenous.
• Canada continues to actively partner with Indigenous organizations, educational institutions, and health organizations to reduce barriers to healthcare program admission, improve Indigenous faculty recruitment and retention, support targeted measures and resources to address anti-racism, encourage cultural safety and humility, and promote trauma informed practices.

Key Messages

• In 2017-2018, Indigenous Services Canada (ISC) set a preliminary budget for the expansion of the health centre in Asubpeeschoseewagong Netum Anishinabek, formerly known as Grassy Narrows First Nation, at $9 million.
• The community successfully lobbied for a new health centre as opposed to the expansion of the existing one as the projects (expansion versus new construction) were approximately the same cost. In December 2022, the community advised the Department that it had awarded the contract to Jarnel Contracting Ltd. at an estimated cost of $18.25 million.
• The community began the project with partial funding approval, with construction starting in late June 2023. To date, the Department has flowed $590,000 to the community for the project.
• The Government of Canada has committed up to $18.3 million to complete construction of the health centre.

Background

• In September 2019, ISC and Asubpeeschoseewagong Netum Anishinabek officials held the first team meeting on the health centre renovation/expansion project.
• In the summer of 2022, the community lobbied for, and were granted, approval to advance the renovation/expansion of the existing centre or choose to build a new facility. The community opted to build a new facility and in December 2022, awarded the construction contract at an estimated cost of $18.25 million.
• In May 2023, the Minister met with the First Nation to discuss the health centre project, as well as the separate Mercury Care Home and a new water treatment plant project.
• In a May 24, 2023, follow-up letter to the meeting, the Minister wrote that "Given that the cost and design exceed existing financial and policy authorities, the Department will need to obtain additional authorities and funding", adding that "This work can take several months."
• The community proceeded with the project without full funding approval and held a groundbreaking ceremony on June 29, 2023. Work continues on the project, which the First Nation advised has a target completion date of June 2025.
• To date, ISC has flowed $590,000 (in 2020-2021) to the First Nation for the purpose of hiring a Professional Project Manager (PPM) and preparing a call for tender bids.

Current Status

• Construction on the health centre is underway with completion targeted for 2025
• The Government of Canada has committed up to $18.3 million to complete construction of the health centre.

Key Messages

• A 2018 feasibility study conducted by Asubpeeschoseewagong Netum Anishinabek (ANA), known as Grassy Narrows First Nation, recommended the design and construction of a Mercury Care Home at an estimated cost of $19.8 million to meet the immediate and long-term health and wellness needs of its members as a result of the historical contamination of the English-Wabigoon River system.
• In April 2020, Indigenous Services Canada (ISC) and the community signed the Mercury Care Home Framework Agreement, committing the Government of Canada to providing $19.5 million to the Mercury Care Home project.
• A revision to the Mercury Care Home Framework Agreement, signed in July 2021, committed $68.9 million to support the operations, maintenance and specialized service delivery of the mercury care home in ANA.
• In 2022, the community submitted an updated proposal for a revised facility design with several additional specifications and increased costs that exceed the $19.5 million originally allocated for the detailed design and construction. The Department had not identified an available source of funding to satisfy the revised proposal.
• Budget 2024 announced $57.5 million over three years, which builds on previous federal investments to construct the Mercury Care Home in ANA.

Background

• In 2018, Asubpeeschoseewagong Netum Anishinabek completed a Community Health Assessment Report, Functional Plan and Feasibility Study for a Mercury Care Home.
• The Community Health Assessment Report (Part 1 focused on adults, Part 2 focused on children) found that over 50 percent of members aged 50+ reported having mercury poisoning, as advised by a health professional. In addition, 55% of those who have been told that they have mercury poisoning reported at least four other chronic health conditions.
• The Functional Plan identified the health human resources that will be required in the care home along with key services.
• The Feasibility Study recommended the design and construction of a care home with a total estimated cost of $19.8 million, to which then-Minister Marc Miller agreed to in its entirety. It also determined that a new water treatment facility was required for the community to meet the water consumption needs created by the proposed mercury care home.
• On April 2, 2020, Minister Miller, on behalf of the Crown, signed a Mercury Care Home Framework Agreement with the community, committing up to $19.5 million for the detailed design and construction of a mercury care home in Asubpeeschoseewagong Netum Anishinabek.
• In Canada's Fall Economic Statement of November 2020, a federal commitment of $200.1 million was announced for the construction and operation of mercury care facilities in Asubpeeschoseewagong First Nation and neighbouring Wabaseemoong Independent Nations. The investment also included funding for a new water treatment facility in Asubpeeschoseewagong Netum Anishinabek to ensure the system has the capacity to meet the water consumption needs of the community.
• On July 26, 2021, ISC and Asubpeeschoseewagong Netum Anishinabek signed an amendment to the Framework Agreement, committing $68.9 million to support the operations, maintenance and specialized service delivery of the mercury care home in the community.
• In September 2022, the community submitted an updated proposal for a revised facility design with several additional specifications and increased costs that exceed the $19.5 million originally allocated for the detailed design and construction. ISC remained committed to working with the community to advance this project in a timely way and to continue moving forward as quickly as possible.
• Budget 2024 announced $57.5 million over three years, which builds on previous federal investments to construct the Mercury Care Home in ANA.
• As per the Mercury Care Home Framework Agreement, the Department provided the First Nation with the following allocations towards the Mercury Care Home project:
  • 2020-2021: $2.5 million
  • 2021-2022: $2.5 million
  • 2022-2023: $9.5 million
• To date, the Department has provided the community with $14.5 million.

Current Status

• ISC continues to work with the community to advance the key commitments of the Mercury Care Home as per the Framework Agreement.
• ISC is supporting ANA to develop a Detailed Services Plan for providing mercury care to community members.
• Next steps: ISC is working collaboratively with ANA and the Province of Ontario at the Mercury Care Working Group table to develop the community's Detailed Services Plan as committed in the Framework Agreement.
• Additionally, ISC and Asubpeeschoseewagong Netum Anishinabek are advancing negotiations on a 30-year contribution agreement for $68.9 million to support the Mercury Care Home operations, maintenance and specialized health services delivery.

Key Messages

• Everyone in Canada should have access to safe, clean and reliable drinking water.
• As of December 31, 2023, more than $3.82 billion of targeted funding has been invested to support 1,291 water and wastewater projects, of which 568 are now complete and 723 are ongoing. These projects will serve 471,000 people in 591 First Nations communities.
• Funding plays an important role in managing the systems that provide clean water and safely treat wastewater. The Fall Economic Statement 2023 announcement of more than $1.5 billion represents a renewal of the First Nations Water and Wastewater Enhanced Program for the next two years in order to ensure that water and wastewater projects continue without interruption.
• As of May 16 2024, First Nations, with support from Indigenous Services Canada (ISC), have lifted 144 long term drinking water advisories (LTDWAs) to date.
  • 277 short-term drinking water advisories were also addressed, preventing them from becoming long-term drinking water advisories.

Background

• Responsibility for safe drinking water on First Nations lands is shared between First Nation communities and the Government of Canada.
  • First Nations are the managers and operators of their water and wastewater systems and are responsible for issuing or rescinding drinking water advisories, generally based on the advice of an environmental public health officer. In Alberta, as a result of the province's laws and regulations, the Environmental Public Health Officers have this authority.
  • ISC provides advice and financial support to First Nations communities for their public water and wastewater systems and ensures that drinking water quality monitoring programs are in place.
• Since 2016, the Government of Canada has committed $4.39 billion of targeted funds until 2023–2024 ($4.20 billion excluding funding for operating expenses related to ISC's administration of the targeted infrastructure investment portfolio). An additional $1.22 billion in new funding has been committed to support First Nations to operate and maintain their water and wastewater infrastructure, for a total commitment of $5.61 billion.
• Most recently, the Federal Economic Statement on November 21st, 2023 announced $1.55B over two years, to support clean drinking water for First Nations. This funding represents an at-level renewal of the First Nations Water and Wastewater Enhancement Program (FNWWEP) for the next two years in order to ensure that water and wastewater projects continue without interruption.

Current Status

• There are communities unable to lift LTDWAs due to capacity issues for operators. To ensure safe, clean and reliable drinking water on-reserve, it will be critical to ensure communities have resources to train, retain and certify water and wastewater operators on reserve.
• ISC has taken measures to monitor, assess, prevent, mitigate, and respond to risks as needed. First Nations, particularly in remote locations, faced supply issues, limited contractor availability, and market saturation which delay implementation.
• As of May 16, 2024, 29 LTDWAs remain in effect in 27 communities.
  • The drinking water advisory affecting English River First Nation's LaPlonge Public Water System became long-term on May 14, 2024.
  • Canada is supporting the First Nation to complete on-going upgrades to their water treatment plant.
  • The upgrades are nearing completion and the advisory is currently expected to be lifted in summer 2024.

Program/Investment

• Infrastructure and the Environment
• Departmental Result: Indigenous communities have sustainable land management and infrastructure

Key Messages

• Since 2018, Canada has been working 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 (AFN), on legislative reform related to safe drinking water.
• Through ongoing engagement with First Nation rights-holders and First Nation organizations, key priorities for new proposed legislation were identified including: recognition of rights; sustainable funding for drinking water and wastewater services; source water protection; and the need for ongoing engagement on water issues that affect First Nations.
• Bill C-61, the proposed First Nations Clean Water Act, would aim to address key priorities expressed by First Nations by:
  • recognizing and affirming the inherent right of First Nations to self-government, including jurisdiction in relation to water, source water, drinking water, wastewater and related infrastructure on First Nation lands;
  • strengthening funding commitments through best efforts to provide adequate and sustainable funding for water services on First Nation lands comparable to services received in non-First Nations communities;
  • establishing minimum national standards for the delivery of drinking water and wastewater services on First Nation lands, based on First Nation choice;
  • facilitating transboundary source water protection agreements; and
  • providing pathways for ongoing engagement, including through consultation and cooperation on federal regulations.

Background

• Everyone in Canada should have access to safe, clean and reliable drinking water.
• First Nations communities do not have legally enforceable safe drinking water protections similar to what is in place in provinces and territories.
• In 2013, the Safe Drinking Water for First Nations Act was created to enable the development of federal regulations to support First Nations' access to clean, reliable drinking water and effective treatment of wastewater.
• However, First Nations shared several concerns with the 2013 Act, including: lack of adequate, predictable and sustainable funding; lack of recognition of Aboriginal rights; potential infringement of Aboriginal and treaty rights; lack of protection of source water; and insufficient engagement on issues that directly affect First Nations.
• In response to these concerns, and aligned with the Safe Drinking Water for First Nations Class Action Settlement Agreement finalized in 2021, Canada formally repealed the 2013 Safe Drinking Water for First Nations Act on June 23, 2022, through Budget Implementation Act, 2022, No. 1.
• As part of the Safe Drinking Water for First Nations Class Action Settlement Agreement finalized in 2021, Canada committed to making all reasonable efforts to develop and introduce proposed legislation, in consultation with First Nations, to replace the repealed 2013 Safe Drinking Water for First Nations Act.
• Following repeal of the 2013 Safe Drinking Water for First Nations Act, Canada enhanced engagement by working directly with First Nation rights-holders, including Modern Treaty and Self-Governing First Nations, and First Nation organizations, including the Assembly of First Nations and First Nations Advisory Committee on Safe Drinking Water, to advance development of new proposed legislation.
• Since summer 2022, hundreds of engagement sessions have taken place virtually or in-person, with groups of First Nations or individual First Nations, based on partner preferences. Two consultation drafts of a legislative proposal were also shared with all First Nations communities and posted online to support broad public review.
• Overall, key priorities expressed by First Nations included: recognition of rights; sustainable funding for drinking water and wastewater services; source water protection; and the need for ongoing engagement on water issues that affect First Nations.

Current Status

• On December 11, 2023, Bill C-61, the proposed First Nations Clean Water Act, was introduced in Parliament.
• Second reading of Bill C-61 started on February 5, 2024.
• Engagement is an ongoing process and Indigenous Services Canada continues to share information with First Nations rights-holders, First Nation organizations, provinces and territories to help support consideration of Bill C-61 and access to safe drinking water now and for future generations.

Key Messages

• The Government of Canada has committed to closing the infrastructure gap in First Nations, Inuit and Métis communities by 2030. Since 2016, ISC has committed more than $26 billion to support these efforts.
• As mandated through the 2020 Fall Economic Statement, Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada worked collaboratively with Indigenous communities and representative organizations to better understand their infrastructure needs.
• Indigenous Services Canada engaged with First Nations to identify their infrastructure needs. As of November 2023, 405 of the 564 First Nations submitted infrastructure needs lists, reflecting a response rate of 72%. The priority infrastructure needs identified by First Nations were community buildings, housing, transportation infrastructure, water, wastewater and utilities, and emergency services.

Background

• ISC engaged individual First Nations in spring 2022 to understand infrastructure needs and order of paramountcy. This exercise saw a response rate of 72% (405/564) and estimated the cost of closing the on-reserve First Nations infrastructure gap by 2030 to be $120 billion at the time.
• ISC also worked with the Assembly of First Nations (AFN), which estimates that $349.2 billion is needed to close the First Nations infrastructure gap by 2030. The report factored in additional costs, such as the transition to a net-zero carbon economy and accessibility of on-reserve infrastructure. It also called for moving away from project-based investment approaches, guaranteeing reliable funding as well as the co development of a self-governed First Nation Infrastructure Bank, amongst others.
• ISC also worked with Inuit Tapiriit Kanatami (ITK) which engaged the four Inuit regional Land Claims Organizations and submitted a report outlining priority infrastructure projects in Inuit Nunangat. ITK estimated that $55.3 billion over 10 years and $793.7 million annually would be required to support priority projects to narrow the infrastructure gap in Inuit Nunangat.
• CIRNAC conducted engagement with the Métis National Council (MNC) and Manitoba Métis Federation (MMF), which identified infrastructure needs in their pre-Budget submissions. The MNC identified immediate infrastructure investment needs of $2.41 billion over 6 years while the MMF identified immediate investment needs of $299.2 million over 10 years.

Current Status

• Starting in spring 2023, Indigenous Services Canada began further engagement with First Nations on ways to improve how infrastructure programs are delivered. Indigenous Services Canada will continue to work with partners to define a bold, new approach to how the Department funds First Nations infrastructure.

Program/Investment

• Infrastructure and the Environment
• Departmental Result: Indigenous communities have sustainable land management and infrastructure

Key Messages

• In response to long-standing housing gaps in First Nations communities, since 2016 the Government of Canada has committed nearly $4 billion, through Indigenous Services Canada (ISC), for on-reserve housing.
• Since 2016 and as of December 31, 2023, in partnership with the Canada Mortgage and Housing Corporation, Indigenous Services Canada is supporting the construction, renovation and retrofit of 33,790 homes on reserve, of which 22,022 are complete.
• The Government of Canada will continue to work diligently with partners to ensure that First Nations people across the country have access to safe and adequate housing.

Background

• First Nations led the co-development of a National First Nations Housing and Related Infrastructure Strategy, endorsed by the Assembly of First Nations Special Chiefs Assembly on December 5, 2018.
• The Assembly of First Nations, Indigenous Services Canada and the Canada Mortgage and Housing Corporation meet regularly to advance the national strategy and plan for its implementation. Infrastructure Canada also attends these meetings.
• This collaboration ensures that housing reforms target a long-term approach to support the transition to First Nations care, control and management of housing, in a way that respects regional differences and First Nations' readiness.
• However, the scale of need is tremendous. In 2021, the Assembly of First Nations released a report on the cost analysis of current housing gaps and future housing needs in First Nations. It projected the on-reserve infrastructure gap for housing to be about $44 billion.
• In April 2024, the Assembly of First Nations released its Closing the Infrastructure Gap by 2030 report, which estimates that the total cost for closing the infrastructure gap by 2030 to be more than $349 billion, with $135 billion of that amount required to close the housing gap alone.
• Since 2016, the Government of Canada has committed $3.93 billion, through 2026-2027, to support closing the housing gap in First Nations on-reserve. Of this, ISC has disbursed over $1.95 billion to First Nations to support their housing needs and priorities.
• Since 2017, the Government of Canada has provided $138.4 million (until 2025–2026) to support engagements and institution building related to transferring housing and infrastructure services.
• Most recently, this funding supported the establishment of an historic Framework Agreement between the Government of Canada and the Confederacy of Mainland Mi'kmaq on the transfer of delivery of housing and infrastructure services.
• Indigenous Services Canada will also continue to support First Nations housing capacity enhancement efforts including project funding and the established Housing Managers Subsidy which assists with the recruitment and retainment of skilled housing professionals. Additional funding beginning in 2024-2025 will support training/certification and technical services.
• The Department is also working with First Nations and organizations to determine financial innovation tools and resources to increase homeownership on-reserve.
• The Auditor General of Canada tabled its audit on housing in First Nations communities in March 2024, which covered housing on reserves for the period from April 2018 to March 31, 2023 and involved both Indigenous Services Canada (ISC) and Canada Mortgage and Housing Corporation (CMHC).
• The Government of Canada welcomed the recommendations set out in the audit and the opportunity to highlight the housing challenges faced by First Nations communities. Indigenous Services Canada is currently finalizing the detailed action plan to address the audit's recommendations.

Current Status

• Budget 2021 and 2022 investments will continue to support First Nations to increase the number of available homes and address critical housing needs.
• Budget 2022 provided an additional $157 million over 5 years beginning in 2022 to enhance housing management capacity on reserve through a Housing Management Subsidy, with a further $66 million over 3 years to begin flowing in 2024 for training and certification, and the provision of technical services.
• $2 billion in housing funding, over 5 years, has been committed in the Agreement-in-Principle on Long-Term Reform of the First Nations Child and Family Services Program and Jordan's Principle. This funding began flowing to First Nations this fiscal year and will support First Nations with the purchase, construction, and/or renovation of housing units to meet the needs of children and families.
• Budget 2024 proposes an additional $918 million to help narrow the housing and infrastructure gap for Indigenous communities, with $426 million of that amount expected to support First Nations on reserve.

Program/Investment

• Infrastructure and the Environment
• Departmental Result: Indigenous communities have sustainable land management and infrastructure

Key Messages

• Indigenous Services Canada (ISC) welcomes the recommendations from the Office of the Auditor General's (OAG) report and the opportunity to highlight the housing challenges in First Nations communities.
• The work underway at ISC and Canada Mortgage and Housing Corporation (CMHC), in partnership with First Nations, closely aligns with the recommendations outlined in the report.
• ISC will continue to work with First Nations partners to co-develop and implement community-led housing strategies in response to their needs and the recommendations of the Auditor General.

Background

• The audit focuses on housing in First Nations communities on reserves for the 5-year period starting April 1, 2018 and ending March 31, 2023 and examines whether ISC and CMHC supported First Nations to close the housing gap by improving housing conditions and increasing First Nations' capacity to manage housing.
• The audit report, tabled in the House of Commons on March 19, 2024, includes both ISC and CMHC and includes the following key findings:
  • high risk of not closing the housing gap by 2030;
  • unaddressed long-standing mould issues and limited assurance on whether all federally funded housing met building code standards;
  • inequitable funding for communities with the poorest housing conditions and no comprehensive picture of First Nations' capacity needs for managing housing;
  • complex application process to access various housing programs offered between departments; and
  • lack of overarching policy framework to guide transfer of housing to First Nations.
• The audit recommends that ISC and CMHC, with First Nations, should:
  • develop and implement a strategy to close the housing gap by 2030;
  • better understand the extent of mould in housing and support First Nations to reduce mould;
  • obtain assurance that federally funded housing meets building codes and support First Nations to address deficiencies;
  • use the most recent census data in funding formulas to reflect demographics;
  • work with First Nations with the poorest housing conditions so they receive the support they need and prioritize capacity funding to communities that need it the most;
  • review the structure/delivery of programs to streamline and facilitate access to funding; and
  • finalize policy framework for the transfer of department responsibilities to First Nations.
• In response to the recommendations, ISC and CMHC will:
  • continue to seek and advocate for resources to close the First Nations housing gap.
  • advance the co-developed First Nations Housing and Related Infrastructure Strategy including the pillar dedicated to Funding and Finance.
  • support First Nations' access to information and resources to address mould, building code compliance issues, and identified construction issues.
  • identify and support First Nations most in need of housing and prioritize capacity management funding.
  • continue to use recent census data and other population health factors in funding frameworks.
  • ISC and CMHC will establish joint governance and oversight mechanisms to support First Nations in the management of their housing affairs.
  • ISC will continue efforts to finalize a policy framework for the transfer of housing services.
  • CMHC will increase awareness and revise programs, and both ISC and CMHC will ask for building code compliance confirmation for renovation work.

Current Status

• To address the housing gap, ISC and CMHC will use the National First Nations Housing and Related Infrastructure Strategy to set measurable housing targets and track progress, aligned to available funding.
• ISC and CMHC will also formalize information sharing to coordinate policy responses and align program delivery. This should help First Nations in navigating the various housing programs and funding available to them.
• To address the issues of mould, ISC will advise, guide, and share data to First Nations and First Nations organizations while recognizing that First Nations have control over which priorities need to be addressed in their communities. To address building code compliance, ISC will explore how to better track code compliance and continue to support First Nation organizations to offer training and information-sharing concerning housing management, operations, and building code compliance.
• In terms of inequitable funding for First Nations with the poorest housing conditions, ISC will look at its current allocation methodologies and explore changes to ensure that communities are supported based on need. The department will also continue to provide capacity funding and support First Nation organizations for the delivery of technical services and certification ($223 million until 2027).
• With respect to the overarching policy framework to guide the transfer of housing to First Nations, ISC will continue work on finalizing a strategy that will make use of existing resources to engage First Nations on a policy framework on the premise that all eventual approaches would be opt-in and First Nations-led.

Key Messages

• The Government of Canada is committed to working with First Nations, tribal councils and First Nations fire expert organizations to support fire protection on reserves.
• Recognizing that First Nations communities are disproportionately affected by fire incidents, which can have devastating impacts on families and communities, the Government of Canada supports First Nation communities to identify and address their fire safety prevention priorities.
• The Government of Canada has invested an average of $48.3 million annually to support the delivery of fire protection services on-reserve. In 2023-2024, an additional $10 million is being provided to support the objectives of the co-developed First Nations Fire Protection Strategy.
• Budget 2024 provided an additional $20.9 million over three years, starting in 2024-25, support the First Nations Fire Protection Strategy, 2023 to 2028 by reducing the risk of fires through investments in lifesaving fire prevention and education programs and capacity development and training initiatives.

Background

• On reserves, fire protection is managed by the First Nation band council. Indigenous Services Canada provides funding for fire protection every year as part of each First Nation's core capital funding. The amount of funding provided is determined by regionally-based formulas.
• ISC supports fire protection in First Nation communities by funding:
  • Firefighting facilities and fire detection systems including fire halls, vehicles, and equipment; related facility services and early-warning systems; acquisition, servicing and testing of fire warning systems and firefighting equipment; and, pumper certifications (required annual certifications for firefighting vehicles to ensure they are operational).
  • Fire protection and prevention programs including the development and enforcement of fire and safety guidelines and building codes, the operation of community awareness programs (e.g., distributing educational materials on fire safety), community training programs (e.g., proper use of fire extinguisher, how to install smoke alarms, conducting fire drills, etc.), training of community firefighting/prevention staff and other community members, investigating/reporting of fires in First Nations communities, review of First Nation Infrastructure Investment Plans, and inspections of buildings and other facilities to ensure compliance with fire and safety regulations.
  • Municipal-Type Service Agreements for Fire Protection Services (i.e., contracting of fire protection services from nearby communities).
• In addition to core capital funding, from 2016-2017 to 2022-2023, ISC provided an average of $48.3 million annually for fire protection, including annual averages of:
  • $11.9 million for capital investments (fire trucks, fire halls, etc.),
  • $15.4 million for operations and maintenance of assets,
  • $4.9 million for firefighter training, and
  • $16.1 million in targeted funding from Budgets 2013, 2016, 2017, 2022 and the Canada Community-Building Fund
• In 2023-2024, an additional $10 million is being provided to support the objectives of the First Nations Fire Protection Strategy, including:
  • National, regional and community-led education and prevention initiatives;
  • Smoke / CO2 alarms and extinguisher installations;
  • Additional building Inspections;
  • Firefighter training; and
  • Upgrading telecommunications equipment, or supporting 911 service.
• Since 2016 and as of December 31, 2023, ISC has invested $120.1 million (excluding operating expenses) in targeted funding to support 326 Fire Protection projects, 220 of which are complete and 106 are currently ongoing. These projects will benefit 286 communities, serving approximately 313,000 people.
• Budget 2024 proposes an additional $20.9 million over three years, starting in 2024-25, to support the First Nations Fire Protection Strategy, 2023 to 2028 by reducing the risk of fires through investments in lifesaving fire prevention and education programs and capacity development and training initiatives.

Current Status

• ISC will continue to provide First Nations communities with annual funding for fire protection services, with the goal of reducing the number of incidents nationally on an annual basis.
• The Department continues to work in partnership with these communities to determine service needs and develop suitable strategies, which may include increased fire prevention programming, potential enhancement of capacity building opportunities, and additional investment opportunities for fire protection assets and equipment.

Key Messages

• ISC recognizes that education infrastructure is often the cornerstone of First Nation communities, providing students with a safe place to learn and grow, acting as a gathering place for community events and cultural activities and, in some cases, serving as a temporary shelter during an emergency.
• Investments in Education Facilities support the creation of quality learning environments that are safe and healthy, promoting better educational outcomes for students living on reserves. These investments include new constructions as well as additions, renovations and major repairs to existing schools in First Nations communities.Canada acknowledges the infrastructure gap that exists and remains committed to work with partners to close this gap.
• Budget 2024 proposes $471 million over three years, starting in 2024-25, for K-12 infrastructure to build and renovate safe and healthy learning environments for First Nations students.

Background

• According to studies completed by the Department and the Assembly of First Nations, First Nation schools have been chronically underfunded. As a result, education facilities on reserve have aged prematurely and are often overcrowded.
• According to the Assembly of First Nations' Infrastructure Needs Assessment 2020 calculations, $2.14 billion in capital needs is required in the next five years for new school construction, additions, planning and design.

Current Status

• In addition to ongoing funding, since 2016 and as of December 31, 2023, Indigenous Services Canada has invested more than $2.07 billion in targeted funding to support 310 school-related infrastructure projects, 180 of which are complete. These projects will result in the construction or renovation of 224 schools, benefitting approximately 36,000 students.
• An update of the School Space Accommodations Standards was published on April 1, 2023. This policy update included: updating school planning and design horizons to be equitable with provincial standards and additional space allocations for gymnasiums, storage, community gatherings and emergency response.
• The performance target for this program is 60% of schools with a condition rating of "good" or "new" by 2025. Actual results from the 2022-2023 Departmental Results Reporting indicate the program has achieved 55% as of March 31, 2023.
• We recognize that there remains a large demand for long-term, sustainable and predictable infrastructure funding for new schools, renovations, and teacherages across the country to help close the education infrastructure gap, and the Department will continue to work with partners to address this need.

Program/Investment

• Governance and Community Development Services
• Departmental Result: Indigenous peoples have reliable and sustainable infrastructure

Key Messages

• Indigenous Services Canada (ISC) monitors and financially supports the construction, operation and maintenance (O&M) of approximately 6,000 km of winter roads to 54 First Nations communities south of 60◦ in Ontario, Manitoba, and Alberta.
• Climate change is causing variable weather patterns and warmer temperatures that: jeopardize the integrity of winter roads; increase the safety risk to road users; delay delivery of food, construction material and fuel, resulting in increased costs.
• Winter roads are a shared responsibility. The Government of Canada works in partnership with provinces, First Nations, and stakeholders where communities rely on winter roads.
• Through its 2024 Budget, the federal government proposes a total of $89 million to support two major all-season road projects – the Hatchet Lake All-Season Road Project in Saskatchewan and the Berens River Bridge and Roads Project in Ontario. This investment will improve access to goods and services and provide safe, reliable road access to neighbouring First Nations communities.

Background

• Winter roads are constructed over land and frozen water bodies (ice roads) and are typically open for 3 months each year (i.e. January–March).
• They are integral to most isolated First Nation communities in providing access to major goods and essential commodities and services such as: fuel (for heating and electricity); building materials (i.e. for schools, medical facilities, water systems, etc.); medical supplies; groceries/food
• They facilitate economic activities as well as social connections among nearby remote-northern communities.
• The seasonal length of the winter roads, starting when ice thickness is safe, depends on particular climatic factors, such as air temperature, precipitation, and wind.
• Ice thickness can be artificially enhanced by snow removal, surface flooding and spray-ice techniques.
• While winter roads are mainly supported by fixed contribution agreements between federal and provincial governments, ISC monitors winter roads and provides some targeted infrastructure funding for their construction and improvements.
• Since 2016 and as of December 31, 2023, ISC has invested a total of $88.3 million in winter roads, of which $12.6 million represents targeted infrastructure investments.
• In Ontario:
  • The Government of Canada provides over $7 million annually for 32 First Nations to construct and maintain approximately 3,200 kilometers of winter roads.
  • The Province of Ontario provides up to $6 million annually to First Nations for the construction, operation and maintenance of winter roads. First Nations can undertake the work themselves or contract out if they choose. Starting in 2023–2024, the Province of Ontario has launched a new program for winter road improvements at water crossings – bridges and culverts – at an amount of $5 million annually.
  • With the construction and maintenance funding and the new bridges and culverts program, the Province of Ontario now provides $11 million annually in support of winter roads.
  • In October 2023, CIRNAC and ISC supported Nishawbe Aski Nation (NAN) with the province, to bring together Indigenous leadership from 32 communities, community and technical experts, local builders and operators, fuel haulers, and provincial ministries. NAN is drafting a summary report (expected in 2024) that will outline common priorities, research gaps identified and recommendations. NAN expects that the gathering and final report should contain key information to inform strategic direction for at least the next 5 years for both provincial and federal departments
• In Manitoba:
  • 17 First Nations with a combined population of over 20,000 rely on 31 winter roads.
  • The winter road system consists of approximately 2,200 km of winter roads.
  • The Government of Canada provides $8 million annually for First Nations in Manitoba to construct and maintain winter roads to their communities.
• The Province of Saskatchewan constructs, maintains and operates winter roads.
  • While the Government of Canada does not fund the construction of winter roads, ISC actively monitors the status of winter roads supporting First Nations communities.
• In Alberta:
  • The Regional Municipality of Wood Buffalo manages the winter road to access Fort Chipewyan while the Athabasca Chipewyan and Mikisew Cree First Nations also have a north-bound road to Fort Smith through Wood Buffalo National Park that is managed by Parks Canada.
  • Little Red River Cree Nation builds and operates two winter access roads to their community: Peace River Ice bridge; and the Southern (secondary) Access. The community receives annual funding of $200,000 from ISC for the construction of the Peace River ice bridge.

Current Status

• Continue sharing data with federal partners: National Research Council, Crown Indigenous Relations and Northern Affairs Canada (CIRNAC), Natural Resources Canada (NRCan) and other Winter Roads Working Group members.
• Work with CIRNAC team responsible for the First Nation Adapt Program on organizing the Manitoba winter road summit led by First Nations in the Fall 2024.
• Contribute to planning ISC Minister's Roundtable on Climate Change by including winter roads component for discussion.
• Integrate winter road considerations into discussions about the Indigenous Climate Leadership Agenda being be led by Crown Indigenous Relations and Northern Affairs Canada (CIRNAC) and Environment and Climate Change Canada (ECCC) (Leaders' Summit planned for Spring/summer 2024)
• Continue to explore funding opportunities to maximize the winter road season, ensuring the integrity of the winter road network, and supporting First Nation communities in developing medium and longer term solutions.

ISC OAG Audit of First Nations Emergency Management

Emergency Management Assistance Program

Key Messages

• Emergency management includes four pillars: hazard mitigation and prevention, emergency preparedness, emergency response, and recovery activities.
• The First Nation Infrastructure Fund (FNIF) supports hazard mitigation and prevention projects to address the first pillar and works closely with ISC's Emergency Management Assistance Program (EMAP) as they address non-structural mitigation and prevention, preparedness, response and recovery projects.
• Through the First Nation Infrastructure Fund, ISC works with First Nation communities on reserves to mitigate natural hazards and provides dedicated funding for climate resilience infrastructure through structural mitigation. This includes maintaining winter road integrity, building dikes, sea walls, nature-based infrastructure, fire breaks, erosion controls, culverts, and projects to protect schools and water and wastewater systems from a changing climate as well as floods, landslides, wildfires, permafrost thaw, and other natural disasters.
• Indigenous Services Canada is working on integrating climate change considerations throughout the life cycle management of assets to ensure infrastructure on reserve is resilient to the impacts of climate change.
• Budget 2024 proposes $145.2 million over five years, starting in 2024-25, for Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to work with First Nations to develop greater climate resiliency and deploy structural mitigation strategies that protect communities, homes, and essential infrastructure from climate disasters, including $10.4 million for Modern Treaty and Self-Governing First Nations.

Background

• Through the First Nation Infrastructure Fund (FNIF), Indigenous Services Canada (ISC) funds eight types of Other Community Infrastructure (roads and bridges, connectivity, cultural and recreational facilities, fire protection, energy systems, planning and skills, band administrative buildings and structural mitigation) and solid waste management projects.
• Structural mitigation projects are infrastructure projects that prevent and modify hazards, segregating hazards by keeping them away from people and assets, and altering the design and construction of assets to make them resilient to potential hazards.
• Although supporting resilient infrastructure on reserves is a priority for ISC, there is limited dedicated funding for mitigating natural disasters and climate adaptation. To support our partners, ISC works with various government departments that provide funding to First Nation recipients through a variety of programs, including:
  • Collaborating with Infrastructure Canada on the Disaster Mitigation and Adaptation Fund;
  • Working with Crown-Indigenous Relations and Northern Affairs Canada, responsible to support First Nation communities identify and assess climate risks through First Nations Adapt Program, and Environment and Climate Change Canada (ECCC) on the development of the National Adaptation Strategy;
  • Participating, in partnership with other federal government departments, in the Joint Committee on Climate Action co-chaired by the Assembly of First Nations and Environment and Climate Change Canada whose objective is to advance climate change adaptation and mitigation measures for First Nations.
• Structural mitigation projects have dedicated funding under the First Nation Infrastructure Fund of $12 million per year from 2020-2021 to 2023-2024.
• Structural mitigation projects are eligible for additional funds under the First Nation Infrastructure Fund, but compete against other infrastructure priorities (such as roads and bridges and connectivity projects). From 2023-2024 to 2027-2028, there remains approximately $896.6 million in funding for the First Nation Infrastructure Fund.
• Project example:
  • A project to protect Skwah First Nation, Shxwhá:y Village and the City of Chilliwack against flooding from the Fraser River in British Columbia is an example of First Nations and Indigenous Services Canada leveraging other government department funding for a major project.
  • The new dike project received $45 million in funding from Infrastructure Canada's Disaster Mitigation and Adaptation Fund, $13 million from Indigenous Services Canada and $7 million from the City of Chilliwack. The Province of British Columbia is also investing $5 million in riprap erosion control measures for shoreline stabilization.
  • The project involves the construction of approximately six kilometers of new dikes along the Fraser River, a new flood gate structure crossing the Hope Slough and a new drainage pump station. Once complete, this work will significantly reduce the risk of flooding in the three communities, improving public safety and protecting homes and businesses from water damage.

Current Status

• Since 2016 and as of December 31, 2023, ISC has invested $156.3 million of targeted funds (excluding operating expenses) to support 128 Structural Mitigation projects, 72 of which are complete. These projects will benefit 265 communities serving approximately 166,000 people.
• The Office of the Auditor General (OAG) reported that as of May 2022, ISC had 112 eligible structural mitigation projects that were identified as unfunded and 72 structural mitigation projects that were identified as unreviewed in the Integrated Capital Management System.
• As of January 2024, the number of eligible unfunded structural mitigation projects has been reduced to 50 with a current estimated project cost of approximately $96 million.
• This net change is a result of the work of Indigenous Services Canada in conjunction with First Nation communities. The work includes determining which eligible but unfunded structural mitigation projects on the Office of the Auditor General list remain a priority for communities and reviewing and updating the Integrated Capital Management System.
• The 50 structural mitigation projects remain unfunded not because of delays, but rather because of limited funds available for structural mitigation projects that help First Nations prepare for extreme weather events caused by climate change.
• To respond to the growing need to address climate change impacts and to close the gap between the funding that is available, additional funding for structural mitigation projects is required to address the eligible, unreviewed, and new projects identified by First Nation partners.

2023 Wildfire Season

2024 Wildfire Season Preparedness

Key Messages

• ISC continues to work closely with First Nations, provincial and territorial partners as well as non-governmental organizations such as the Canadian Red Cross to plan for, address and mitigate flooding. First Nations are supported in leading efforts to address their current flooding situations. ISC also works with similar programs such as CIRNAC's First Nations Adapt program to support proactive flood mapping activities in First Nations communities.
• ISC will continue to work closely with partners to ensure that information is shared in a timely manner, and proper preventative and mitigation measures are in place so that communities are well prepared for floods.
• Through the Emergency Management Assistance Program ISC will continue to work with First Nations leadership in recovering from the impacts of previous flood seasons, expediting support for projects to mitigate future impacts.
• The department supports on-reserve First Nations communities and other eligible recipients that experience flooding by reimbursing costs associated with responding to and recovering from the event. If an evacuation of a community and its members is required, all eligible costs of the evacuation are supported.
• ISC is working with Public Safety Canada to support the development of a range of flood risk mitigation strategies and initiatives for all communities. As a part of this work ISC is participating in Public Safety led engagement with First Nations and Indigenous communities to better understand their experiences with flooding and disaster supports.

Background

• Flooding is the most expensive recurring natural hazard in Canada, the cost of which is consistently increasing.
• Indigenous Services Canada's (ISC) Emergency Management Assistance Program (EMAP) provides on-reserve and other eligible First Nation communities with financial support in preparing for, mitigating against, responding to, and recovering from emergency events, including floods.
• In 2023, there were 35 flooding incidents impacting on-reserve First Nation communities, which resulted in the evacuation of over 2,500 evacuees from 10 communities across Canada. All evacuees impacted by the 2023 flooding season have returned home to their communities.
• Ahead of the 2024 flood season, ISC is working internally and with counterparts at Public Safety Canada to explore initiatives for flood risk reduction, preparedness, and mitigation.
• The 2023 flood season was considered less intense when compared to previous flood seasons and the 2023 wildland fire season. However, flooding emergencies remain a significant threat to on-reserve First Nation communities and likely will in future years to come.
• Since the 2019-20 fiscal year, there have been 319 flooding incidents impacting on-reserve First Nation communities, resulting in 85 evacuations of over 15,000 First Nation evacuees.
• At this time, there remains 524 long-term evacuees from flooding events. The majority of these evacuees are from Peguis First Nation, in Manitoba. The remaining long-term evacuees are from various First Nations in British Columbia and the Northwest Territories.
• To assist First Nations in preparing for and mitigating against flood emergencies, ISC's Emergency Management Assistance Program supports the funding of various activities, including: ice breaking, snow removal, culvert and ditch clearing, sandbagging, and other eligible activities.
• Through the First Nation Infrastructure Fund (FNIF) ISC also supports structural mitigation projects to harden communities against natural hazards. Funded projects include fire resistance roofing, building retrofits, landslide and erosion mitigation, and building elevation.

Current Status

• Looking ahead to the 2024 flooding season, ISC will continue to identify opportunities to leverage internal capacity and funding mechanisms to support First Nations on-reserve.
• ISC will continue to work with external partners, including First Nation communities, Indigenous organizations, Provinces and Territories, and other Government departments (such as Public Safety Canada), to find opportunities to support on-reserve communities in preparing for and responding to flood emergencies.

Program/Investment

Non-Structural Mitigation and Preparedness

Program/Investment

Other Community Infrastructure – structural mitigation

Key Messages

• Our government is committed to addressing the inequities and broader reform issues in the registration and membership provisions of the Indian Act.
• Bill C-38 seeks to address the issues of enfranchisement, individual deregistration, natal band reaffiliation and membership, as well as outdated and offensive language related to dependent persons.
• Bill C-38's amendments were developed with the support of Indigenous partners and incorporates feedback from over 100 engagement sessions.
• On November 20, 2023, the Minister of Indigenous Services announced that an Indigenous Advisory Process was being established to inform the upcoming Collaborative Process on second-generation cut-off and section 10 vote thresholds. Since then, rights-holder kits have been distributed to First Nations across Canada to prepare for consultation and provide community-specific data related to the second-generation cut-off.
• The consultation phase of the Collaborative Process is expected to launch in Fall 2024, and is the next step in the co-development of reforms to address registration inequities that remain within the Indian Act.
• As part of Budget 2024, $53M is being proposed over the next 5 years with $10.6 M ongoing to stabilize resources and ensure the efficient delivery of registration services under the Indian Act while reforms are considered.

Background

• The Minister of Indigenous Services is mandated to prioritize support for First Nations' self-determination with a view to a transition away from the Indian Act.
• In 2018-2019, following the Collaborative Process on Indian Registration, Band Membership and First Nations Citizenship, the Minister's Special Representative (MSR), Claudette Dumont-Smith's Final Report to Parliament on the Review of S-3 recommended addressing a broad suite of remaining inequities in the Indian Act, including enfranchisement, the second-generation cut-off and deregistration .
• In March 2022, the Honorable Patty Hajdu, Minister of Indigenous Services, announced an agreement with the Nicholas v AGC counsel to put the litigation in abeyance to allow the parties to seek a legislative solution for enfranchisement-related inequities. Under this agreement, Canada committed to a timely introduction of legislative remedies addressing enfranchisement.
• The issue of enfranchisement stems from the impacts of enfranchisement-related provisions introduced by Bill C-31, An Act to Amend the Indian Act in 1985. Despite the subsequent legislative amendments in Bill C-3, An Act to Amend the Indian Act and Bill S-3, An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général), which aimed at eliminating sex-based inequities, enfranchisement-related inequities still persist. Some individuals with family histories of enfranchisement continue to face challenges in transmitting entitlement to registration to subsequent generations, unlike individuals without such historical ties. Additionally, those who were enfranchised as part of a First Nation collective, along with their descendants, actively lack entitlement to registration.
• In response to the Nicholas v AGC Charter challenge on enfranchisement-related inequities, the Government introduced Bill C-38, An Act to amend the Indian Act (new entitlement provisions), which was tabled on December 14, 2022. The Bill is currently undergoing a second reading.
• The content of Bill C-38, An Act to amend the Indian Act (new registration entitlements) has been communicated through the departmental webpage, social media posts, web content and distribution of information through a third-party partner, Indigenous Link. Information on the availability of virtual engagement sessions was shared broadly through each platform.
• On November 20, 2023, the Government launched the Collaborative Process on the Second-Generation Cut-Off and Section 10 Voting Thresholds, a consultation process that will seek First Nations' recommendations on a legislative remedy to these issues. The Minister of Indigenous Services issued invitations welcoming 22 organizations to an Indigenous Advisory Process (IAP) as part of the co-development of the consultation process ahead. This proactive work is driven without the impetus of litigation and will continue to progress this year and into 2024.
• Action Plan Measure 7 of the UN Declaration on the Rights of Indigenous Peoples Act commits to addressing the issue of enfranchisement through the implementation of Bill C-38, An Act to amend the Indian Act (new registration entitlements). Additionally, Action Plan Measure 8 commits to co-developing a consultation process on broader reform issues in a manner that attains the high thresholds for cooperation and consultation with First Nations rights-holders, as defined in the UN Declaration Act. Action Plan Measure 9 is being led by Crown Indigenous Relations and Northern Affairs Canada to consult First Nations and other impacted Indigenous groups to support the co-development of opt-in alternatives to Indian Act registration and membership (First Nation citizenship).

Current Status

• On November 20, 2023, the Minister of Indigenous Services held a kick-off event with IAP partners and issued a public statement committing to identifying a solution to the second-generation cut-off.
• Information Kits as part of the Rights-holders Initiative were distributed in February 2024 providing every First Nation with community-specific data on how the second-generation cut-off impacts their members and Nation.
• The co-development of the Collaborative Process on the Second-Generation Cut-Off and Section 10 Voting Thresholds will conclude the design phase with a knowledge-sharing circle in June 2024.
• Consultation events are expected to begin in Fall 2024.

Key Messages

• The Government of Canada is committed to supporting accountable, strong, and sustainable Indigenous governments and institutions.
• The Indigenous Governance and Capacity programs contribute to the costs of governance and administration of First Nations and tribal councils through Band Support Funding, Employee Benefits and Tribal Council Funding, and contribute to the governance capacity development of First Nations and Inuit communities through Professional and Institutional Development.
• Budget 2024 proposes $275 million over two years, starting in 2024-25 to Indigenous Services Canada to maintain the Indigenous Governance and Capacity programs and support governance capacity development.

Background

• The Indigenous Governance and Capacity programs were created in the early 1980s to provide core funding to First Nations, for them to assume the delivery of various departmental programs.
• While First Nations have increasingly assumed the responsibility for designing and delivering programs and services to their populations that cover a wide range of federal and provincial programs in addition to many municipal-type services, support from the Government of Canada for the core operations of First Nations has remained static.

Current Status

• The Government committed to undertaking a comprehensive and collaborative review of programs and funding that support First Nation governance.
• Indigenous Services Canada is working in collaboration with First Nation partners, including the Assembly of First Nations as well as expert institutions, to modernize the programs that support First Nation governance.
• By modernizing the programs and funding that support First Nation governance, First Nations will be better positioned to take on the transfer of responsibilities, and to exercise self-determination.
• The $275 million over two years, proposed in Budget 2024, will maintain the Indigenous Governance and Capacity programs and support governance capacity development, while this joint work continues.

Key Messages

• We are continuing to negotiate a final settlement agreement on the long-term reform of the First Nations Child and Family Services Program, based on the Agreement-in-Principle reached with the parties in December 2022, to ensure that the discrimination found by the Canadian Human Rights Tribunal never repeats itself.
• The Agreement-in-Principle dedicates $20 billion to a renewed program over five years providing First Nations children and families residing on-reserve with culturally-based and substantially equal family supports to help them stay together. There is also new funding for on-reserve housing for five years to support prevention initiatives.
• The Agreement-in-Principle also committed $2 billion over five years for housing to address the needs of children and families on reserve. ISC also flowed the first year of this $2 billion commit e t, amounting to $209 million.
• Since reaching that agreement, ISC has implemented early enhancements to the program, significantly increasing investments in funding for prevention programming, funding First Nations representative services in all provinces and the Yukon, and extending the eligibility of post-majority support services to young adults formerly in care until their 26th birthday.

Background

The Agreement-in-Principle on long-term reform, reached between Canada, the Assembly of First Nations, the Caring Society, the Chiefs of Ontario and the Nishnawbe Aski Nation in December 2022, included approximately $20 billion, over five years, for the long-term reform of the FNCFS Program.

Current Status

• Negotiations towards a final settlement agreement are on-going.
• Conditions in the Agreement-in-Principle that held back some of the funding for a renewed program have now been lifted and that $810 million in funding was released in late in the 2023-24 fiscal year, including $209 million for housing that will support children in need.

Program/Investment

$20 billion over five years

Key messages

• Through the framework of An Act respecting First Nations, Inuit and Métis children, youth and families (the Act), Canada is committed to supporting Indigenous communities to uphold their jurisdiction, ensuring Indigenous communities' inherent right of self-government over child and family services. Coordination agreements facilitate this crucial transition, and funding for them supports the exercise of jurisdiction and delivery of culturally appropriate child and family services to their members, while demonstrating Canada's commitment to empowering Indigenous communities, groups and people.
• Through coordination agreement discussions, Canada is collaborating with Indigenous governing bodies on the shared common goal of ensuring that Indigenous children and families are in the best position to be able to thrive. These agreements are pivotal in enabling communities to exercise their inherent right of self-government, ultimately leading to improved outcomes for Indigenous children and families.
• Canada is committed to working with provincial and territorial governments to conclude these agreements, and expects them to provide meaningful financial contributions to support the implementation of Indigenous laws and service delivery models related to child and family services.

Background

• A total of 79 Indigenous governing bodies (76 First Nations, 1 Inuit and 2 Métis) representing more than 110 communities have submitted a notice of intent to pursue jurisdiction (53) or a request for a coordination agreement (26) pursuant to section 20 of the Act.
• Since the coming into force of the Act on January 1, 2020, seven agreements have been signed, and as many as 10 more agreements may be signed by the end of 2025.
  • ON: Wabaseemoong Independent First Nations and Kitchenuhmaykoosib Inninuwug First Nation
  • MB: Peguis First Nation
  • SK: Cowessess First Nation
  • AB: Louis Bull Tribe and Founding First Nations (Loon River First Nation, Lubicon Lake Band, and Peerless Trout First Nation)
  • BC: Splatsin
• As of May 2024, there were 20 active coordination agreement discussions tables.
• Timelines for concluding a coordination agreement vary among coordination agreement discussion tables as a result of multiple factors, including the need for additional assessments or preparatory work, complexities in service delivery models, efforts to ensure seamless coordination with provinces and territories, and the federal fiscal cycle.
• Since the Act was brought into force, Indigenous Services Canada has committed over $32 million in funding for Indigenous communities to facilitate their participation in coordination agreement discussions with Canada, provinces, and territories; and close to $1.4 billion to support the implementation of Indigenous laws through seven agreements.
• Budget 2024 provides $1.8 billion over 11 years, starting in 2023-24 to support communities in exercising jurisdiction under an Act respecting First Nations, Inuit and Métis children, youth and families, including the first Inuit agreement to support community-led prevention-based solutions to reduce the number of children in care.

Current status

• Ongoing efforts to finalize coordination agreements are progressing well, which will allow even more Indigenous communities to exercise their inherent right of self-government over child and family services within the next year.
• Indigenous Services Canada continues to work with Central Agencies in order to secure required funding for coordination agreements and related fiscal arrangements.

i. Aboriginal Entrepreneurship Program and Recapitlization of the Métis Capital Corporations

ii. Clean Energy

iii. Indigenous Tourism

Key Messages

• UNDA Action Plan Measure 74 seeks to advance economic reconciliation and address persistent economic barriers faced by Indigenous communities. An Economic Reconciliation Framework is a key tool to meet these goals.
• Indigenous Services Canada is supporting an Indigenous-led, government-supported policy development process with the objective of supporting First Nations, Inuit and Métis Peoples in realizing their economic visions for the future.
• An economy that works for everyone is a prosperous one. The Government of Canada is committed to offer valuable tools, remove barriers, and create the conditions for Indigenous Peoples to pursue prosperity.

Background

• UNDA Action Plan Measure 74: Building on the work from the National Indigenous Economic Development Board Report on Economic Reconciliation, as well as the First Nations Financial Management Board's Roadmap Project and the National Indigenous Economic Strategy, advance economic reconciliation through engagement on key aspects for Indigenous economic development such as initiating discussions on an Indigenous-led investment and financial asset management regime, and address persistent economic barriers for Indigenous businesses and communities, including the impacts of colonization and inequitable policies.
• Budget 2023 included a $5 million investment in 2023-24 to co-develop an Economic Reconciliation Framework with Indigenous partners.
• Indigenous Services Canada is in the process of developing a framework in partnership with Inuit Tapiriit Kanatami, the Métis National Council, and a group of First Nations institutions and organizations.

Current Status

• Contribution agreements with the Indigenous Policy Leads were prepared this fiscal year and the engagement and policy development processes have begun.
• Our shared goal is to produce an Economic Reconciliation Framework before the end of the 2024-25 fiscal year.

Context

• Dalian Enterprises Inc. (Dalian) had come under scrutiny over its involvement in the development of the ArriveCan app, in particular with respect to the number and value of contracts received since 2016, as well as Dalian's president and founder, Mr. David Yeo, being a public servant of Department of National Defence.
• As a result, on March 4, 2024, Public Services and Procurement Canada suspended Dalian as well as Dalian and Coradix Technology Consulting in Joint Venture (Team Dalian) from continuing work on federal contracts and from participating in any new procurement opportunities.
• As of March 8, 2024, Mr. Yeo, in an interview with the Globe and Mail, advised the Government of Canada that he only became a Department of National Defence employee months after the company had completed its contract on ArriveCan. Mr. Yeo stated his business interests in Dalian were transferred to a blind trust to avoid any conflict of interest in his business affairs.
• ISC has followed up with Dalian to request they resubmit the corporate documentation and any information on the new arrangements made since Sept 2023; none has been provided to date.
• The company is suspended from the Indigenous Business Directory until further notice.

Considerations

• Mr. Yeo's appearances and testimony, and the ArriveCan study before the parliamentary committees has drawn attention to the role of monitoring and oversight of contracts set aside under the Procurement Strategy for Indigenous Businesses, as well as whether and how economic opportunities for Indigenous businesses are being achieved through the eligibility criteria for Procurement Strategy for Indigenous Businesses set asides.
• In regard to the role of monitoring and overseeing the Procurement Strategy for Indigenous Businesses, ISC's role is limited to the conducting of pre-and-post award compliance and discretionary audits aimed at monitoring the compliance of businesses registered in the Indigenous Business Directory. The compliance audits will verify that the business owners are Indigenous and have 51% ownership and control of the business. Compliance of the terms and conditions of contracts of the Procurement Strategy for Indigenous Businesses rest with the contracting departments.
• The 33% content rule requires joint ventures and other businesses to demonstrate that 33% of the value of the work is performed by the Indigenous business. ISC's ability to monitor this rule is limited to instances where a complaint is raised or at the end of contract when a post-award compliance audit is called on. This is further challenged by our ability to undertake corrective actions with joint ventures for non-compliance, either late in the contract or after contract completion. Both these issues are high on the list of priorities to modernize Indigenous procurement currently underway as part of the Transformative Indigenous Procurement Strategy.

Next Steps

• ISC to continue working closely with Public Services and Procurement Canada and the Treasury Board of Canada Secretariat, given their role in procurement operations, policies and guidance on best practices, including in relation to Indigenous procurement.
• ISC has hosted over 40 engagement sessions across the country to learn about the barriers, concerns, and challenges that Indigenous people face with respect to federal procurement. For example, we are working together on solutions related to Indigenous business registration, definitions of Indigenous businesses, and ways to improve accountability in the procurement process to ensure commitments to community participation in contracting opportunities are met.
• ISC expects to have co-developed options for reform ready for consideration by fall 2024.

Key Messages

• We are committed to fostering economic reconciliation leading to opportunities for Indigenous businesses through the minimum target of 5% of federal contracts awarded to Indigenous businesses.
• ISC works with federal departments conducting compliance audits to verify the eligibility of bidders on the Procurement Strategy for Indigenous Businesses set-aside requirements and to maintain the integrity of the Indigenous Business Directory.
• The serious nature of concerns raised in the media and at recent parliamentary committee appearances regarding Indigenous procurement, and particularly related to Mr. David Yeo's role in Dalian Inc., raised sufficient questions for ISC to restart the audit process, and warranted the suspension of Dalian and Team Dalian from ISC's Indigenous Business Registry, aligned with the actions taken by Public Services and Procurement Canada.
• Since 2021, ISC has been reviewing existing programs and policies like the Procurement Strategy for Indigenous Businesses and actively listening to advice and experience of Indigenous partners and businesses, while working with them to improve economic opportunities through federal Indigenous procurement processes.

Key Messages

• Indigenous Services Canada recognizes the importance of a fiscal relationship with First Nations that addresses sufficiency, predictability and flexibility of funding. The New Fiscal Relationship Grant strengthens the relationship with First Nations by providing flexibility to design services based on community priorities, with predictable funding agreements of up to ten years.
• Budget 2021 introduced funding escalation to the New Fiscal Relationship Grant. It provides assurances of predictable funding growth for the duration of a Grant funding agreement, including adjustments for inflation, population growth, and a guaranteed minimum annual increase of 2%.
• Indigenous Services Canada continues to pursue co-development of a new fiscal relationship with First Nations as part of the Government of Canada's commitments to economic reconciliation and implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act.

Background

• The New Fiscal Relationship Grant is an optional funding mechanism available since 2019-20, which offers greater flexibility, predictability and sufficiency for First Nations encompassing a suite of 27 programs and services funded by ISC including: K-12 and post-secondary education, income assistance, assisted living, lands management, economic development, primary health care, community health infrastructure operations and maintenance, housing and minor capital, infrastructure operations and maintenance, and governance.
• Over $1.3B in funding has been provided to First Nations via the New Fiscal Relationship Grant mechanism in 2023-24. Over $4B in funding has flowed to First Nations via the New Fiscal Relationship Grant since its inception in 2019-20.
• Eligibility criteria for the New Fiscal Relationship Grant were co-developed with the Assembly of First Nations and the First Nations Financial Management Board, based on the Financial Management Board's certifications for financial administration laws and financial performance.
• To help First Nations "keep up" with increasing costs associated with inflation and population growth, Budget 2021 allocated $2.7 billion over 10 years, starting in 2021-22 and $751 million ongoing, to implement funding escalation for First Nations with New Fiscal Relationship Grant agreements.
• The New Fiscal Relationship Grant funding escalator begins in the second year of a Grant agreement. It is based on a three-year moving average of inflation as determined by the Statistics Canada's Final Domestic Demand Implicit Price Index (FDDIPI) and the Indigenous Services Canada's Indian Registry of on-reserve and Crown land populations.

Current Status

• Since 2019, 333 of 578 potential Grant First Nations (58%) have formally expressed interest in the NFR Grant at least once. Indigenous Services Canada works collaboratively with First Nations that wish to qualify for the Grant.
• As of 2023-24, 143 First Nations have funding agreements which include the New Fiscal Relationship Grant. Indigenous Services Canada is working with 20 First Nations on possible entry for 2024-25.
• The long-term vision for the Grant is accelerated improvements in socio-economic outcomes driven by self-determination in service delivery. Indigenous Services Canada will measure these improvements using the Community Well-being Index (CWB), which is derived from census data on education, labour force activity, income and housing.
• Based on data from the 2021 Census, the average CWB score for First Nations in the Grant was 66.3; whereas the average score for non-Grant First Nations was 61.9, and the score for non-Indigenous communities was 78.7. Indigenous Services Canada will monitor changes to this baseline data to assess whether the Grant is assisting First Nations in closing socio-economic gaps.

Program-Level Data (if applicable)

Key Messages

• Everyone – including First Nations governments – supports transparency and accountability.
• Following extensive engagement and consultation efforts with First Nations and partner organizations on a new fiscal relationship, our government has clearly heard that the First Nations Financial Transparency Act does not respect the right to self-determination, including self-governance, and the primary accountability of First Nations governments to their citizens.
• Despite the 2015 suspension of federal enforcement measures, under First Nations financial administration laws and Indigenous Services Canada funding agreements First Nations governments submit their financial reports to Indigenous Services Canada and must make them available to their citizens through various processes.
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• The government is also working with First Nations governments to strengthen their fiscal and governance capacity and further support the right to self-determination and primary accountability to First Nations citizens.

Background

• In 2013, the First Nations Financial Transparency Act was passed without consultation and despite First Nations' opposition. Its objective was to increase federal oversight and control to ensure First Nations governments were accountable to their citizens.
• In 2015, as part of its broader commitment to reconciliation and in response to First Nations' concerns, the Government suspended enforcement of the Act. In 2017, the Prime Minister committed to "engage in discussions on transparency and accountability that are based on the recognition of rights, respect, co-operation, and partnership and that build towards a renewed, nation-to-nation relationship with Indigenous Peoples."
• Through extensive engagement and consultation efforts on a new fiscal relationship between 2017 and 2023, First Nations and partner organizations (the Assembly of First Nations, the First Nations Financial Management Board and AFOA Canada) advised the Government that the Act conflicts with the right to self-determination and is inconsistent with the United Nations Declaration on the Rights of Indigenous Peoples. They also emphasized that First Nations governments are accountable to their citizens and the Government under their own financial administration laws (that support self-determination) and Indigenous Services Canada funding agreements
• Elements of a mutual accountability framework (such as a First Nations-led audit function, data, financial management), currently being co-developed as part of a new fiscal relationship, will further support First Nations governments' governance and fiscal capacity and primary accountability and transparency to their citizens.

Current Status

• ISC continues to work with partner organizations to co-develop a new fiscal relationship and advance a mutual accountability framework as an essential underpinning of the relationship.

Next Steps

• ISC and partner organizations will accelerate work towards the creation of a First Nations auditor general and/or audit function(s) intended to provide oversight and supports to First Nations governments, which will further strengthen their governance and fiscal capacity and primary accountability and transparency to their citizens.