Appearance before the Standing Committee on Indigenous and Northern Affairs (INAN) on Taxation Revenue and Economic Reconciliation, Indigenous Services Canada, May 27, 2024

Panel 1

Background

• Indigenous Peoples face significant systemic barriers to accessing affordable business financing, which ultimately poses a major barrier to entrepreneurship and economic prosperity.
• Barriers can include lower average incomes, living in remote locations, gaps in infrastructure, lack of digital access, lower accumulated wealth, incomplete credit histories and lower financial literacy.
• As the Indigenous population continues to grow, the demand for commercial loans and business supports by Indigenous entrepreneurs has steadily grown as well.

Considerations

• The Aboriginal Entrepreneurship Program has been extremely successful in improving access to capital for Indigenous entrepreneurs and businesses. It enhances the capacity of Indigenous business development organizations. And it provides financial services, business information and developmental support services to Indigenous entrepreneurs.
• This funding announcement for the Aboriginal Entrepreneurship Program, which builds on interim sunsetting funding from Budget 2019 and Budget 2021, will provide much-needed capital for Indigenous Financial Institutions and Métis Capital Corporations to support the growing needs of Indigenous entrepreneurs.
• The announcement also supports a distinctions-based approach for economic development, which allows for greater authority and additional governance autonomy that enable Indigenous Peoples to decide on the economic elements that affect them.

Next Steps

• The government will continue to work closely with partners to implement this funding commitment.
• The government is also working with the Inuit Tapiriit Kanatami to address the priorities of Inuit-led Indigenous Financial Institutions.

Key Messages

• The Government of Canada is committed to working with Indigenous businesses and communities to promote long-term prosperity, job and wealth creation and economic reconciliation.
• As a demonstration of this commitment, Budget 2024 announced $350 million over five years, starting in 2024-25, to support Indigenous entrepreneurs through the network of Indigenous Financial Institutions, including $30 million over five years for the Métis Capital Corporations.
• I am very pleased that the Government of Canada is supporting the important work of Indigenous Financial Institutions and Métis Capital Corporations in helping Indigenous entrepreneurs create and expand their businesses, which builds opportunities for themselves, their families, their communities, and future generations.
• We will continue to work with Indigenous partners, other governments and the private sector, to increase the participation of Indigenous Peoples in the Canadian economy.

Background

• Strategic Partnerships Initiative-Clean Energy functions in a complementary fashion to the larger Off-Diesel Hub, to streamline and coordinate the delivery of clean energy programming within the federal family, increase ease of program access for communities, reduce overlaps, and to ensure efficiency gains to better support communities in their energy transition – all of which will contribute to Canada's net zero carbon emission targets and goals.

Considerations

• The investment under Budget 2021 was used to stand up four new Regional Indigenous Clean Energy Initiatives in Alberta, Saskatchewan, Quebec, and the Atlantic regions, maintain support for its flagship Indigenous clean energy initiative in British Columbia, as well as enabled a partnership agreement with the national Indigenous Clean Energy organization.
• In addition, Strategic Partnerships Initiative-Clean Energy Regional Initiatives have to date benefitted 112 communities by creating 2,148 jobs and delivering 111 training opportunities. In particular, Strategic Partnerships Initiative-Clean Energy has provided funding for major projects and initial development activities in eight provinces focusing on solar farms, wind projects, biomass generation, and a hydrogen hub.

Program-Level Data (if applicable)

Next Steps

• Unlock Budget 2024 funding through a streamlined treasury board submission process, via Supplementary Estimates B, with a Treasury Board date late fall 2024.
• Initiate cash management process with the Chief Finances, Results and Delivery Office to bridge the year-one funding gap while awaiting Treasury Board approval.

Key Messages

• Budget 2021 committed $36 million over three years (2021-24), through the Strategic Partnerships Initiative, to build capacity for local, economically-sustainable clean energy projects in First Nations, Inuit, and Métis communities across the country. This funding was renewed through the recent Budget 2024 announcement for another three years, starting in 2024-25 to 2026-27.
• The Strategic Partnerships Initiative offers a means for its network of 22 federal partners to collaborate for the advancement of Indigenous participation in economic development opportunities such as Clean Energy. It facilitates federal coordination around shared priorities between multiple federal partners, provincial and territorial governments, and non-federal partners within key areas of the Canadian economy. Using its whole of government approach, the Strategic Partnerships Initiative is able to fill gaps in existing federal programming while building partnerships and leveraging other sources of funds to maximize support for economic development in Indigenous communities.

Background

• The Indigenous Tourism Association of Canada (ITAC) is a national not-for-profit organization that provides economic development advisory services, tourism conferences, capacity development training and workshops, industry research, and information for Indigenous tourism operators and communities throughout Canada.
• Since 2016, ISC has provided funding to ITAC to support and grow the Indigenous tourism industry.

Considerations

• Indigenous tourism has been one of the largest employers and economic drivers in Indigenous communities across Canada. However, according to the Conference Board of Canada's report entitled "Impact of ITAC's Tourism Growth Strategy on Canada's Indigenous Tourism Sector", the sector is still operating at a 57% decline in direct GDP, down from $1.78 billion in 2019 due to the COVID-19 pandemic. There was a concurrent 51% decline in employment over the same period, with about 37,000 workers employed in Indigenous tourism before the pandemic. Compared to 2020 estimates, direct GDP in 2021 increased by $219 million, while employment increased by over 6,100 jobs.
• The investment under Budget 2022 provided ITAC funding to advance the organization's strategic plan, including increasing positive industry awareness and building member support; uniting the Indigenous tourism industry by bringing together members and key industry organizations to collaborate and maximize results; encouraging product development and investment from non-Indigenous, provincial, and territorial partners in Indigenous tourism and destination development, to ensure the industry remains competitive internationally; and promoting Indigenous tourism and its positive community and cultural impacts with high-value, targeted marketing, as well as through research, media and sales efforts.

Program-Level Data (if applicable)

Next Steps

• ISC will meet with ITAC and discuss next steps, including submitting an application for a funding agreement.

Key Messages

• Indigenous tourism is a major economic driver in First Nations, Inuit and Métis communities and an important part of the Canadian economy.
• Budget 2024 committed $2.5 million in 2024-2025 to continue supporting the Indigenous tourism industry through ITAC.
• This investment will enable ITAC to continue growing the Indigenous tourism industry and to develop and implement its own source revenue model.

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.

Background

• 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

• The Assembly of First Nations and Indigenous Services Canada continue to work together through technical tables focused on policy development, the Grant, and modernization of the programs that support governance capacity and default prevention.
• 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.
• We have learned important lessons on how to ensure that co-development on the fiscal relationship is sustainable. We agree on the importance of credible co-development processes, sufficient tools and resources to maintain collaboration over time, and most importantly engagement with First Nations that is led by First Nations, not the Government of Canada.

Background

• The New Fiscal Relationship initiative has been a priority for collaboration between the Assembly of First Nations and the Ministers responsible for Indigenous Services since 2016. Key achievements since 2016 include:
  • Implementation of measures to eliminate barriers to carrying over unexpended funding in contribution agreements with First Nations (2017)
  • Co-development and implementation of the New Fiscal Relationship Grant (2019) and New Fiscal Relationship Grant escalator (2021)
  • Report of the Assembly of First Nations-Indigenous Services Canada Joint Advisory Committee on Fiscal Relations (2019)
• As of 2024-25, 154 First Nations have funding agreements which include the New Fiscal Relationship Grant (with 6 additional decisions still pending for 2024-25). This represents $1.36 billion in predictable, flexible annual funding flowing through this mechanism. Over $4B in funding has flowed to First Nations via the New Fiscal Relationship Grant since its inception in 2019-20.
• As of June 1, 2023, ISC no longer applies the first 2 levels of the Default Prevention and Management Policy (DPMP), Recipient-Managed and Recipient-Appointed Advisor, to recipients that enter default. This is an important step in the process to repeal the DPMP, which the Government of Canada committed to in 2017. ISC plans to work with First Nations partners to co-develop a new approach that provides capacity development support to communities experiencing significant governance capacity challenges. The number of communities in default has decreased from 140 in 2017-18 (8 in third party), to 51 in 2023-24 (1 in third party).
• In Budget 2018, Canada committed to reviewing current spending and funding needs for governance, which is currently being done in collaboration with indigenous organizations through research and technical working groups. Organizations involved in this work include the Assembly of First Nations, the First Nations Financial Management Board and AFOA Canada.

Current Status

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.
• $1.36B in funding was 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 2024-25, 154 First Nations have funding agreements which include the New Fiscal Relationship Grant (with 6 additional decisions still pending 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

• 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-Level Data (if applicable)

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 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-Level Data (if applicable)