Executive summary of the Final Agreement on Long-Term Reform of the First Nations Child and Family Services Program in Ontario

Total amount in the Ontario Final Agreement

The Ontario Final Agreement commits more than $900 million each year until March 31, 2034.

Funding recipients

First Nations and FNCFS service providers will use FNCFS Program funding to deliver child and family services to First Nations children, youth, young adults and families on reserve in Ontario.

Funding mechanisms

The Ontario Final Agreement provides that funding be distributed to First Nations and FNCFS service providers using highly flexible funding mechanisms. First Nations and FNCFS service providers will be able to move funding across expenditure categories and, with approval of an unexpended funding plan, carry forward unspent funds to the following fiscal year. FNCFS agencies will be required to engage with their affiliated First Nations to discuss the use of unexpended funds.

FNCFS agency accountability to First Nations

Accountability of FNCFS agencies to the First Nations they serve is one of the principles of the Ontario Final Agreement. Canada's funding agreements with FNCFS agencies under the reformed FNCFS Program will require FNCFS agencies to co-develop a child and community well-being plan with their affiliated First Nation(s). FNCFS agencies will also be required to collect data and report to their affiliated First Nations on a range of indicators to provide a holistic view of the children they serve.

Elements of the Reformed FNCFS funding approach

The reformed FNCFS funding approach is made up of the following components:

• Baseline funding: Funding to support operations, maintenance and child protection costs, including least disruptive measure activities, of FNCFS agencies. Funding flows to FNCFS agencies from the Government of Ontario and directly from ISC. Funding directly from ISC is based on actual expenditures for the 2022-2023 fiscal year for intake and investigation, legal fees and building repairs, adjusted annually for inflation and population growth.
• Prevention funding: Funding to support services that prevent child maltreatment and harm through early and ongoing intervention and First Nation-based services that support healthy child development, strengthen families and promote family wellness. In 2026-2027, the prevention funding attributable to a First Nation will be calculated by multiplying $2,708.73 by the First Nation's registered on-reserve population. At minimum, each First Nation will receive $75,000 in prevention funding. These amounts will be adjusted annually for inflation.
• First Nation Representative Services: Funding to support First Nation Representative Services (sometimes referred to as Band Representative services or Band Designate) that support First Nations children, youth and families when they are involved, or at risk of being involved, with the child and family services system. Funding for First Nation Representative Services will be calculated based on a First Nation's highest annual funding amount for First Nation Representative Services between 2019-2020 and 2023-2024 adjusted for inflation. Funding will be adjusted annually for inflation and population growth.
• Post-Majority Support Services: Funding to support the self-identified best interests of youth aging out of care and young adults formerly in care, up to their 26th birthday. Eligible youth and young adults must
  1. have been ordinarily resident on reserve in Ontario at the time they were taken into care
  2. be now ordinarily resident on reserve in Ontario, or
  3. be taking active steps to reside on reserve in Ontario
  Funding for each First Nation is calculated by estimating the number of eligible youth and young adults within the post-majority support services age range and comparing this across all First Nations to determine each Nation's share of total annual funding.
• Household supports: Funding to support First Nations on reserve in meeting the basic needs of families, keeping them together, and keeping children out of care wherever possible. This funding will be adjusted annually for inflation.
• Information technology: Funding to support information technology needs to manage and deliver child and family services on reserve. This funding will be equal to 6% of baseline funding and will be provided to First Nations.
• Results: Funding to support the implementation of the First Nations Child and Family Services Program performance measurement framework, and in particular for capturing and reporting on data related to First Nations wellbeing. This funding will be equal to 5% of baseline funding and will be provided to First Nations.
• Emergency: Funding to support responses to unanticipated circumstances affecting or related to the delivery of child and family services on reserve. This funding will be equal to 2% of baseline funding and will be split evenly between First Nations and FNCFS agencies.
• Remoteness: Funding to account for barriers faced by remote communities and the increased costs of delivering child and family services in those communities. This adjustment is based on the Remoteness Quotient Adjustment Factor developed by Nishnawbe Aski Nation and Canada. Where applicable, it will apply to prevention, First Nation Representative Services, post-majority support services, household supports, information technology, results and emergency funding.
• Capital: Funding to support the purchase, construction, or repair of capital assets for a First Nation or FNCFS Service Provider that supports the delivery of the reformed FNCFS Program's funded services and activities. Funding may be accessed through the Ontario Final Agreement's proposal process.

Housing funding

As part of a five-year commitment agreed to in the Agreement in Principle on Long-Term Reform of the First Nations Child and Family Services Program and Jordan's Principle, Canada will continue to provide funding through 2027-2028 for First Nations to purchase, construct or renovate housing units in their communities to meet the needs of children and families.

Measuring reformed performance of the FNCFS Program in Ontario

Standardized data on the efficacy of the reformed FNCFS Program and on services provided to First Nations children under the reformed FNCFS Program will be collected and will contribute to reporting to Parliament and Canadians on the outcomes of the reformed FNCFS Program. To support monitoring related to structural drivers that lead children and families into contact with the child welfare system, Canada will continue to report publicly, through Indigenous Services Canada's Departmental Results Report, on indicators that are consistent with the Institute of Fiscal Studies and Democracy's Measuring to Thrive Framework, in such areas of measurement as safe and suitable housing, family reunification, livable income and mental health services.

New FNCFS agencies and FNCFS agency transitions

With written notice, a First Nation may transition its protection services to a new or different FNCFS agency. Canada will fund and facilitate this transition. Where a First Nation transitions to a new FNCFS agency, Canada will provide the new FNCFS agency with funding for reasonable start-up costs.

First Nations exercising jurisdiction over child and family services

First Nations that are funded to exercise jurisdiction in the delivery of some or all aspects of child and family services in accordance with a self-government agreement, a treaty arrangement, a coordination agreement under An Act respecting First Nations, Inuit and Métis children, youth and families, or some alternative federal jurisdictional and funding process, will not be offered less funding than what their entitlement would be for services funded under the reformed FNCFS Funding Approach and covered by such jurisdictional agreement or funding process.

Governance of the reformed FNCFS program in Ontario

The Ontario Reform Implementation Committee, consisting of 8 members appointed by the Chiefs of Ontario, Nishnawbe Aski Nation, Canada and the Ontario Chiefs-in-Assembly, will be established to oversee and monitor the implementation of the reformed FNCFS Program in Ontario. This committee will consider the Ontario Final Agreement's two program assessments as well as other data and information to inform Canada on recommended changes to the reformed FNCFS Program in Ontario.

Reformed FNCFS Program in Ontario assessments

Two program assessments will be conducted, one by the end of 2027-2028 and the other near the end of the agreement period. The assessments will review, evaluate and document the reformed FNCFS Program's progress toward the Ontario Final Agreement's goals. The scope of assessment will be defined by the Ontario Reform Implementation Committee.

Dispute resolution

A dispute resolution process, managed through an arbitral tribunal, will resolve disputes among the Chiefs of Ontario, Nishnawbe Aski Nation and Canada related to the implementation of the Ontario Final Agreement. The arbitral tribunal will also resolve disputes between Canada and First Nations or FNCFS agencies as it relates to the FNCFS Program.

Reform of the 1965 Agreement in Ontario

The Chiefs of Ontario, Nishnawbe Aski Nation and Canada will continue to work together on an expedited basis to pursue reform of the 1965 Canada-Ontario Memorandum of Agreement Respecting Welfare Programs for Indians.